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B. Description of Business

The purpose of this section is to convey a sense of what your company does. In this section you need to write a concise description of your business by answering the following questions:

1. What is the name of your business?

2. What is your primary business?

Example:
The primary business of Bread and Pasta shop is the production and retail sale of gourmet bread products and fresh pasta from its retail store location.

3. What type of product or service will your business offer?

Example:
Include Bread and pasta menu with product description and pricing structure.

4. Who are your potential customers?

5. Describe your potential customers in terms of the following:

Age
Gender
Family size
Occupation
Income level
Location
Buying patterns
How they make purchase decisions

Examples:

• Bread and pasta shop typical customers
  
• Female House heads with family size of 3 or more
  
• Upper middle class of income level of $25,000 or above
  
• Residents of nearby communities
  
• Most purchases are made in early morning or late afternoon
  
• Product variety and freshness, proximity and convenience of access to the store are the major influencing factors in purchase decisions
  
• Majority of consumers is not very price sensitive

6. Where will your business be located? Why?

Example:
Bread and pasta shop plans to locate its store in 94000 zip code area in San Francisco because the area's favorable demographic statistics. Over 85% of households in this locality have annual income in excess of $25,000. Over half of the residents in this locality are within the company's target customer segment.

7. What is the legal structure of your business and what is the date that it was or will be established? Is it a proprietorship (wholly owned by you), a partnership (owned jointly by you and your partner) or a corporation?

Include copies of key documents in appendix to your business plan. Even partnerships require written agreements of terms and conditions to avoid later conflicts and to establish legal entities. Corporations require charters, articles or incorporation and bylaws.

8. When do you plan, or when did you open your business?

Include financial statistics from the date of opening.

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