The Company and Industry
The Company and Industry
Writing and Presenting a Business Plan
Chapter 2
Suggested Length: 1-3 pages
Objectives
1.
To describe the start-up and background
of your company.
2.
To provide a brief sketch of your industry
and how your venture addresses it.
Note: The first part of this module is primarily for ventures
that have some operating history. If your company has
a significant history, you may want to have this section
stand alone as its own chapter.
Company Background

When and where was the company started?

Date and state of incorporation or
partnership?

Where is the business located? Why?

Have you obtained a patent or trademark for
the company’s name and/or logo?

Legal structure of company?
How Was Your Venture Developed?
Why did you go into business? How long did it
take?
What problems were encountered? How did you
overcome them?
What were the key milestones?
Is your company affected by major economic,
social, technological, environmental, or regulatory
trends?
Who are the Founders and Other Key
People Involved?
What skills and experiences does each member
of the team bring to the business?
How much money have you/they invested? How has
it been used? What have been your other sources
of funding?
What Industry are You In?
What

is the current state of the industry?
How big is it in terms of total sales? Profits?
Margins?
Who
are the major industry participants?

Competitors, suppliers, major customers, distributors,
etc.?

What is their performance? Market share?

What advantages do you have over them?
What are the Industry’s Chief
Characteristics?
Where is it expected to be in 5 years? 10 years?
Will your share increase or decrease with these
changes?
Who else may enter the industry?
Subheadings to Include

The Company

The Industry

Background

Chief Characteristics

Current Status

The Participants

Future Plans

Analyst Summaries

Trends
What to Accomplish
Make the reader a part of your dreams.
Describe how your work and decisions got the
company where it is. Show how past
performance will pave the way to future
success. Demonstrate how you will become an
important addition to the industry and that you
understand the industry and where it is headed.
The following is a suggested sequence
of presentation.
The Company
Background
1.
2.
3.
Describe the start-up and history of your
company from the time of inception. State what
form of business it is and where it is located.
Discuss significant milestones, such as
obtaining a patent, building a prototype,
signing a major contract, or obtaining
trademarks on the company’s name or logo.
Discuss people involved and the roles they
have played.
The Company
Current Status
1.
2.
3.
Discuss where you are now. Talk about the
reputation you have built, your strengths, and what
limitations are being experienced.
Describe how your product is performing in the
marketplace. State how much money has been
invested to date, by whom, and how it has been
used.
Give an overview of your sales and services record,
if any. Discuss the kind and amount of funding the
business needs to begin or improve operations.
The Company
Future Plans
1.
Discuss your goals for the next three to five
years. Describe how you plan to achieve them
and what resources will be needed.
2.
Allude to improvements and expansion of your
existing product line as well as your hopes for
increasing your market share and sales.
The Industry
Chief Characteristics
1.
Describe the industry your company is in.
2.
Discuss the industry’s profile, including size,
geographical dispersion, market, history
summation, current status, and total sales and
profits for each of the last three years.
The Industry
The Participants
1.
2.
3.
Discuss the competition and other players
(suppliers, wholesalers, distributors, etc.)
within your industry.
Summarize each participant along a
spectrum of weakest to strongest. Briefly
discuss the participants’ product/service
lines and market niche.
Discuss participants with whom you will
have direct involvement or competition.
The Industry
Analyst Summaries
1.
2.
Provide a series of quotes and statements that
summarize significant facts, figures, and trends
about the industry from various reputable sources.
Make sure you properly credit the source and
provide the date of publication. Use quotes and
statements from diverse sources i.e., industry
magazines and newspaper articles.
Quotes from personal interviews can also have a
powerful impact. These statements should clarify
where the industry is headed and the various
markets to be served within the industry.
The Industry
Trends
1.
2.
3.
Discuss where your industry is headed. State
whether it is declining, improving, or holding steady
and what opportunities there may be.
Discuss where it might be in five to 10 years and
your relative position within it. Discuss the future of
the industry in terms of market need and/or
acceptance and profit potential.
Describe significant events or changes within the
industry that will affect your business positively or
negatively.
Common Mistakes to Avoid

Including too much detail and personal opinion
about the company and not enough on
significant milestones and potential

Failing to demonstrate a well-rounded
knowledge of major industry players and their
potential influence on the company
Common Mistakes to Avoid

Appearance to be a fly-by-night operation

Evidencing lack of direction

Demonstrating poor or inadequate knowledge of
the industry and trends