Writing your business plan begins now!

The lesson outline is:

What is the Business Description?
--Industry analysis

--Mission statement
--Business goals
--Project objectives
--Value proposition
--Products and Services

What is the Business Description?

The business description describes the nature and purpose of the business and includes the firm's mission statement, goals, value proposition, and description of products and services. The business description delivers this content in a straightforward and informative manner, but with an upbeat and inspiration tone. The purpose of the business description is to objectively explain and justify your business idea in a positive and enthusiastic manner.

Business Concept

The business concept section gives the reader the big picture about what the business will do and how it will succeed.

Industry analysis: A good way to open this section is with a brief industry analysis. An industry is a group of businesses that manufacture, distribute, or sell similar projects or services.

  • An industry analysis defines the industry in which the business will operate (e.g., retail, information distribution, financial services) and uses reliable and objective data to show the future prospects of the industry and, by implication, the business.
  • Sources of information for the industry analysis include research companies such as Dun & Bradstreet, Standard & Poor's Investor Services, and the Risk Management Association who publish business directories and industry surveys. Trade and industry journals publish articles that include quantitative data, trend analysis, and influential environmental factors that are affecting their respective industry sectors.

In the United States the FedStats Web site provides access to statistical data from over 100 Federal agencies including (of interest to business plan writers) the International Trade Administration (e.g., U.S. Industry and Trade Outlook), the Small Business Administration, Bureau of Economic Analysis, Bureau of the Census (e.g., Statistical Abstract of the United States), and the Bureau of Labor Statistics.

Don't expect to find perfect information in the time you have to complete this analysis.

Mission statement: With the big industry picture in the reader's mind, narrow the focus to your business. After a few words of introduction, state the mission of your business and provide a brief justification and explanation about the importance of this mission, perhaps in light of the industry analysis just presented. Or, in the business case, explain how the e-business initiative will contribute to the fulfillment of the company's mission.

A mission statement is a declaration of what a business aspires to be. This can be an intimidating exercise, especially if your business idea is still being formed in your own mind. It is also an important exercise because the mission statement appears early in the plan and is a starting part for defining the business and writing the plan.

Mission statement examples: Sometimes the best way to understand what is a mission statement is to see what other companies have selected as their mission statement. Obviously you should not copy another company's mission statement because you lose the benefits the process provides, you will want to distinguish yourself in the marketplace, and you violate that company's copyright on its mission statement. However, exemplary mission statements can suggest wording or an approach that you may want to use.

Here are some mission statements from real companies and organizations:

  • McDonalds: "McDonald's vision is to be the world's best quick service restaurant experience. Being the best means providing outstanding quality, service, cleanliness, and value, so that we make every customer in every restaurant smile."
  • J. Sainsbury: "Our mission is to be the consumer's first choice for food, delivering products of outstanding quality and great service at a competitive cost through working faster, simpler, and together."
  • Success Networks: "Our mission is to inform, inspire, and empower people and organizations to be their best -- both personally and professionally."
  • Big Binoculars: "Our mission is simply to offer our customers the most binocular aperture, at the highest quality, for the lowest price."
  • Levi-Strauss: "We will market the most appealing and widely worn casual clothing in the world. We will clothe the world."
  • OHCHR: "The mission of the Office of the United Nations High Commissioner for Human Rights (OHCHR) is to protect and promote all human rights for all."

Now that you know what a mission statement is, how do you develop one for your e-business?

A good place to start is with the vision part of the statement. In a brainstorming exercise, conduct the following exercises to clarify what you and others intend for the business to be:

  • List 5-10 words or phrases that describe your business. Highlight the three most important.
  • List 3-5 words or phrases that describe the company's ideal image from a customer's point-of-view.
  • List 3-5 words or phrases that describe the company's ideal image from a management and employee point-of-view.

This vision must be tempered with a focus on the purpose of the business:

  • List the market opportunities and/or customer needs that your company intends to address (e.g., the business' value proposition).
  • Who are your customers? List the company's primary and secondary target markets (target markets are discussed in the Market Analysis lesson).
  • With your customers in mind, list each service or product your business will provide.
  • List 3-5 measures of your business' success.