This section gives you the chance to describe the general business of your company. Think of it as a way to introduce your readers to the business idea, but not overwhelm them with details. After reading this section, the reader should have a basic idea how your company makes money. Your focus should be on defining who would benefit from your concept, why the customer needs the product, what problem the product solves for the customer and the features of the product.

Your Business Plan Writing Assignment:

In your Business Idea section, write brief answers (one or two sentences) to these questions:

1. In what industry is the business? (Example: The business is in the Restaurant Industry.)
2. Where is the business located? (Example: The business will be located in San Francisco, CA.)
3. Is the business a start-up or an existing business? State the company’s current situation (prelaunch, start up, existing, etc.) and, if it’s an existing business, when it was formed. (Example: I am investigating the financial opportunity for a start-up restaurant business.
4. What products or services will the business provide to its customers and what problem does the product/service solve for the customer? (Example: The restaurant will be a fast food business selling sandwiches, as there are no other fast food sandwich businesses nearby, etc.)
5. Who are the company’s primary customers and why they need your product/service? (Example: The target customers will consist of the local business population and students from a nearby university who want a good, fast sandwich for a fair price.)
6. From where will the business buy its inventory? Or, if your business provides a service, who are the service providers? (Example: We will source the ingredients for our products from nearby wholesale suppliers.)
7. How is the business legally formed (Sole Proprietor, LLC, Corporation) and who are the owners? Describe the owners experience in the industry, or who the owners will rely on for guidance if their experience is limited. (Example: We will discuss the suitable legal formation with our attorney if we determine that pursuing the business is appropriate. The owners have five years experience managing fast food restaurants.)
8. How much money, or capital, have the owners invested in the business so far? (Example: The owners have invested about $2,000 in their research efforts.)
9. State the purpose of the business plan (start up investigation, funding, planning, etc.). (Example: The purpose of this business plan is to determine whether the business idea can generate sufficient net income to warrant going forward with the idea.)
10. Discuss the biggest strengths and (importantly) the biggest weaknesses. Give a lot of thought to what the problems might be with the concept.

 
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