This is the first section of your business plan. Once you have read the Course Materials for this Chapter, your assignment is to provide the information regarding your business or business idea under each of the following headings:

DESCRIPTION OF THE BUSINESS
Be sure your business description includes the following:

• The complete name of the business.
• Who owns it (include everyone applicable)?
• The legal structure of the business (sole proprietorship, partnership, corporation, limited liability company, etc.).
• The location of the business (Be sure to include the address, city, state and zip code. If it is going to be a home-based business, state that also).
• If it has already started, state how long has it been in operation. If it hasn’t stated yet, provide an anticipated start date.
• The type of business it is (retail, service, manufacturing, construction, non-profit, etc.).
• A thorough description of the products and/or services your business will offer. Make sure it is written in a way that the average reader will understand it.
• A brief statement explaining why this business will be successful.

VISION STATEMENT
A vision statement is where you see this business five years from now. Briefly describe the status and/or growth of your business in five years using realistic and tangible criteria such as:

• Number of locations
• Annual figures
• Number of employees
• Annual production
• Number of clients
• Sales volume
• Market share

Or any other criterion that is measurable, is an indicator of business growth, and is applicable to your particular business.

VISION TRIGGER
Create a brief slogan (usually no more than about seven words) for your business that helps create an image in the consumer’s mind and/or emphasizes one or more of the qualities that make your product or service desirable. For example:

• Built Ford Tough…Promotes strength and dependability
• Have it your way…Promotes customer service, satisfaction, and choice
• Just Do It…Promotes athleticism and living life to the fullest

MISSION STATEMENT
A Mission Statement is your pledge to your customers. It states the commitment(s) you make to maintain your business image, ethics, standards and/or philosophy. For example:

WE WILL BE the preferred strategic link between our suppliers and customers.

WE WILL SERVE today's needs for technology products and services, and tomorrow's needs for business solutions.

WE WILL BE AMONG the leading industrial electronics and computer systems distributors in the world. WE WILL PROVIDE our investors with attractive financial growth, and our employees with an equal opportunity for personal and professional growth.

WE TAKE PRIDE in our culture, dedicated to: integrity, growth, quality and success.

WE ARE COMMITTED to doing what we say we will do! 

 —Pioneer Electronics

BUSINESS OBJECTIVES 
State 1-2 objectives that will be achieved by the business each year for the first three years. These objectives should be measurable and realistic. They can be based on gross revenues, reaching a break-even point, volume of products, owner draw, sales volume, profits, locations, and/or employment figures. For example:

Joe’s Washing Machine Repair will have these business objectives during the first three years of operation:

1. Gross revenue of $100,000 in the first year of operation.
2. An owner’s draw of $20,000 in the first year of operation.
3. Gross revenue of $250,000 in the second year of operation.
4. An owner’s draw of $50,000 in the second year of operation.
5. Two employees by the third year of operation.

Well-written business objectives are SMART (specific, measurable, attainable, realistic, and have a timeline).

MANAGEMENT EXPERTISE
Explain why you chose this particular type of business and why you feel that you will be able to successfully operate it. Justify your position by mentioning any work experience, business management experience, training, education and/or awards that would be considered an asset when running your business. For example:

Susan Samuels is the owner and operator of Superior School Consulting Services. Ms. Samuels has a Bachelor’s degree in Education from XYZ University and was Educator of the Year in 1999 and 2001. She is an accredited member of the American Association of School Administrators and serves on the board of numerous local non-profit organizations. She previously started a successful house cleaning business that was bought by a competitor in 1997 and she is a graduate of the Accelerator Online Business Plan Course presented by the University Business Center of California State University, Fresno.

Attached is the resume of Susan Samuels as well as other documentation that supports her ability to manage this business.

SUPPORT PERSONNEL
If you have, or plan on having employees and/or independent contractors, state their positions and responsibilities. Also state other businesses and agencies that you will work with in order to insure the success of your business. For example:

Cookies To Go will initially hire three part-time drivers to deliver the cookie orders. For financial and legal issues, the owner will also work closely with his accountant (name/firm) and attorney (name/firm). For other business issues and/or concerns, he will solicit advice, counseling and/or technical assistance from local business assistance organizations such as the University Business Center, Central Valley Business Incubator, Small Business Development Center and Chamber of Commerce.

TIPS FOR COMPLETING THIS ASSIGNMENT
Remember… Each assignment will become a section of your business plan, so if you complete each assignment in the proper format, compiling your plan will be a snap! Make sure to type each assignment in a 12-point font (Arial or courier preferred) and try to follow a consistent format (like the sample business plans). For example, begin this assignment with the heading in bold, upper case, and centered on the page. Then follow it with the information regarding your particular business or business idea. The beginning of this week’s assignment should look like this:

SECTION ONE: OVERVIEW OF THE BUSINESS

DESCRIPTION OF THE BUSINESS
Central California Associates (CCA) is a start-up consulting business owned and operated by Mary Jones as a sole proprietorship. CCA will be located in the Central Valley Business Incubator at 2555 Clovis Avenue, Clovis, CA 93612. The business has taken a one-year lease on a 1,200 square foot office and will begin operation on March 1, 2002.

And then continue on with the rest of your business description as well as the other items that are included in this assignment following the same format.

1. If you’re not quite sure how to start, take a look at the sample business plan located in the Supplement section of the Course Materials. You can follow the format shown in the sample plan; borrow some of the wording to get you started, or both.
2. Here’s a step you can take now that will make it easier for you when you are putting the pieces of your plan together. Create a document and save all of your corrected homework assignments in the order they are created. That way, you can add page numbers and/or any format changes to a single document instead of five separate documents.
3. If you are still unsure on how to complete this week’s assignment, you can get help by:
   • E-mailing your coach with your specific question(s).

FREQUENTLY ASKED QUESTIONS
What if I don’t know all of the details (such as location) for my business description?
This is a very common occurrence. Part of the experience of developing a business plan is “nailing down” the details of your business. If you don’t know every detail, write what you expect it to be. For example:

Acme Widgets will be located in an industrial area in the Southwest section of the city known as “manufacturer-town.” The owners of Acme Widgets anticipate leasing a building that is approximately 10,000 square feet, has outside storage, and is located near a railroad line.

What if some of my business information changes?
This also happens often. Halfway through the development of your business plan, you may realize that any number of key elements of your business needs to be changed. Don’t worry! A truly effective business plan is one that is reviewed, updated, and if necessary, changed on a regular basis.

In some sections, it seems like I’m repeating the same or similar information. Am I writing my plan correctly?
Yes. Some sections of your business plan will need to repeat information that is stated in other sections. This is very true in the information contained in your business description. Information from that section will also be included in your Operations, Marketing, and Industry & Competitive Analysis sections.