An effective company summary should give readers, such as potential investors, a quick and easy way to understand your business, its products and services, its mission and goals, how it meets the needs of its target market, and how it stands out from competitors. Before you begin writing your company summary, remember to stick to the big picture. Other sections of your business plan will provide the specific details of your business. The summary synthesizes all of that information into one page.
What To Include in Your Company Summary
The company summary section of a business plan should include:
Business name Location Legal structure (i.e., sole proprietorship, LLC, S Corporation, or partnership) Management team Mission statement Company history (when it started and important milestones) Description of products and services and how they meet the needs of the marketplace Target market (who will buy your product or services) Competitive advantage (what sets you apart in the marketplace to allow you to succeed) Objectives and goals (plans for growth)
Getting Started on Your Company Summary
The U.S. Small Business Administration (SBA) website has a lot of information available if you’ve never written a business plan before. The SBA provides examples of business plans for different types of companies. Before you begin, you should decide whether you want to go with a traditional business plan format or a lean startup format. The traditional format is appropriate if you want to have a comprehensive, detail-oriented plan or if you are requesting financing. The lean startup format is best for those who have a relatively simple business and want to start it quickly or as a starting point for those who plan to refine and change the plan regularly. No matter which type of business plan you choose, you’ll need to include a company summary.
Examples of a Company Summary
Although there are many blueprints for writing a company summary, below are a couple of examples to get you started.
Consulting Firm
You can opt for a concise opening paragraph such as this one: XYZ Consulting is a new company that provides expertise in search marketing solutions for businesses worldwide, including website promotion, online advertising, and search engine optimization techniques to improve its clients’ positioning in search engines. We cater to the higher education market, including colleges, universities, and professional educational institutions. Several elements of the company summary are covered here, including the name (XYZ Consulting), history (new company), description of services (web promotion, SEO, advertising) and why it’s needed (improve positioning in search engines), and the target market (higher education).
Starbucks Coffee Company Overview
Starbucks breaks down the company overview on their website into the following sections: “Our Heritage” Here the company describes how long the company has been in business, citing its roots, the founder, Howard Schultz, and how he was inspired to open the first Starbucks in Seattle after visiting Italy. It briefly mentions the growth of millions of customers and how the company’s heritage remains important to its long-term success. “Coffee & Craft” The overview describes the high-quality products and services being offered and why they stand out from the competition by describing the detailed process of choosing and growing coffee beans. You’ll notice they don’t suggest their product is a low-cost product but instead provide a high level of “experiences to savor.” “Our Partners” Starbucks describes its employees as partners that work together in an inclusive manner to achieve success. It highlights how they are at the center of the experience. “Pursuit of Doing Good” The company describes its values and how it gives back to the community.
Tesla Inc. Business Overview
Below are excerpts of the business overview pages from the annual 10-K filing on Dec. 31, 2021, for Tesla Inc. Overview Competition Tesla highlights the competitive automotive market and how the company differentiates itself from the larger, more established competitors. Intellectual Property The company highlights its intellectual property, including trademarks and patents. Mission Statement The company highlights its mission statement and its sustainability goals using environmental, social, and governance (ESG) and human capital resources.
Tips for Writing a Company Summary
There are other items you can include in your company summary to expand on the areas that you’d like people to focus on, depending on your objective. You might provide more information about the company’s location, legal structure, and management team. You can also include more information about the:
Company’s history, such as a family business that’s been in operation for multiple generationsBusiness objectives, including short-term and long-term goalsBusiness strengths, highlighting anything that might give your company a competitive advantage in the field
You can also customize the summary if you have a specific objective or a targeted audience. For example, if the goal of your business plan is to secure funding, you might focus on areas that appeal to investors and lending institutions, including:
Why you’re the best person to manage the businessYour experience in your field, as well as the total years of experience of your management teamExpertise or special talents of your team, including training, licenses, certificationsHow you plan to make the business a successFinancial information, such as a high-level discussion of your track record of revenue growth and the financial opportunities that can be realized as a result of securing financing
You may also want to address any areas of perceived weakness by explaining how you’ll overcome them or compensate.
Company name and locationLegal structure such as a sole proprietorship, LLC, or partnershipMission statement and management teamDescription of your products and services and how they are neededTarget market or who are your customersCompetitive advantage or what makes your company different
