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Business Plans For Independent Inventors

How To Describe Your Business

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You will have to provide a detailed description of your business for any business plan. Start with asking yourself, "What business am I in?" In answering this question include your products and market as well as a thorough description of what makes your business unique.

Cover Sheet

A cover sheet goes before the description and is the first page of your business plan. It includes the name, address and telephone number of the business and the names of all principal people involved in your business. You cover letter might include a brief statement of purpose for example: why are you handing this business plan out. The cover letter should also summarize (table of contents) what is included in your business plan.

To describe a business in a well-written business plan there are three main areas you need to cover: describing your business, describing the invention that you will be offering, and describing the location of your business, and why this location is desirable.

Describing Your Business

The description of your business should clearly identify goals and objectives, and it should clarify why you are, or why you want to be, in business.

When describing your business, generally you should explain:

  • Legalities - business form: proprietorship, partnership, corporation. The licenses or permits you will need.
  • Business type: merchandising, manufacturing or service. What your product is.
  • Is it a new independent business, a takeover, an expansion?
  • Why your business will be profitable.
  • What are the growth opportunities?
  • When your business will be open (days, hours)?
  • What you have learned about your kind of business from outside sources (trade suppliers, bankers, other inventors and manufacturers, publications).
Also, in the describing your invention, describe the unique aspects and how or why they will appeal to consumers. Emphasize any special features that you feel will appeal to customers and explain how and why these features are appealing.

Describing Your Invention Goods

Try to describe the benefits of your invention goods from your customers' perspective. Successful business owners know or at least have an idea of what their customers want or expect their product. This type of anticipation can be helpful in building customer satisfaction and loyalty. And, it certainly is a good strategy for beating the competition or retaining your competitiveness.

Describe:

  • What you are selling.
  • How your product will benefit the customer.
  • If you are offering more than one product, describe which products are in demand; if there will be a steady flow of cash.
  • What is different about the product your business is offering.

Describing Your Location

The location of your business can play a decisive role in its success or failure. Your location should be built around your customers, it should be accessible and it should provide a sense of security.

Consider these questions:

  • What are your location needs?
  • What kind of space will you need, include online requirements?
  • Why is the area desirable? the building desirable?
  • Is it easily accessible? Is public transportation available? Is street lighting adequate?
  • Are market shifts or demographic shifts occurring?
Next: Marketing Plans, Competitors, Pricing and Sales
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