How to write a business description (including tips)

By Indeed Editorial Team

Published 29 April 2022

The Indeed Editorial Team comprises a diverse and talented team of writers, researchers and subject matter experts equipped with Indeed's data and insights to deliver useful tips to help guide your career journey.

A business description can be an essential part of any business plan. It can outline a company's objectives and plans to achieve them. Understanding how to write a business description can help you know how to include information that can attract customers, colleagues and investors in a manner that persuades them to support the enterprise's goals. In this article, we list business description components, provide steps you can use to write one, describe terms associated with business descriptions, outline tips to help you write these ideas and list target audiences for a business description.

What does a business description include?

A business description may vary from one company to another, but can typically have the following components:

  • name of the business

  • location of the enterprise

  • structure of the organisation

  • names of the company owners

  • date the business began

  • goals of the enterprise

  • the target market of the organisation

  • vision and mission statements

  • product or service offered by the business

How to write a business description

Here are some steps to help you learn how to write a business description depending on your aim:

1. Research the industry

Researching the company's industry and getting information about the top competitors can help you understand what makes a business unique. Such information may help you create a specific description of the company. You can conduct your research on various business information sources, such as:

  • trade magazines

  • business news

  • interviews with customers

  • research publications relating to the business' industry

  • surveys on employees from other enterprises

Related: Research skills: Definition and examples

2. Summarise the current state and future states of the industry

At this stage, you may analyse both the industry and the company. You can then outline changes and trends the industry is experiencing and the future shifts that you predict. These state changes might occur in different business sectors as it grows, such as technology, operations, human resource and customer interaction. The effect of these shifts may be positive or negative on a business. You may include all the trends that are likely to affect the company significantly in the description.

3. Provide basic details about the business

You can include the basic information about a business, such as its registered name, location of operation and the number of employees. Categorising the industry an enterprise belongs to may provide more context for readers of your business description. Classifications may especially be helpful for readers that have an interest in companies belonging to specific industries. These field classes can include:

  • information technology industry

  • transport field

  • entertainment group

  • hospitality sector

  • pharmaceutical industry

  • agriculture sector

4. Create a problem statement

A problem statement can be a summary that shows what current or future problem a business is solving. Typically, this description may include the target audience facing the challenge and how the firm plans to address the issue. You can detail the products or services the enterprise has created to tackle the issue, their benefits and features that make the company's products unique compared to competitors.

Related: How to write a problem statement (with an example)

5. Explain the target market

A simple explanation of the target market can help readers better understand the problem the organisation is addressing. You can include information unique to the market as it may easily allow readers to visualise the audience you are describing. Some properties you can use to describe the target audience are:

  • age range

  • geographical location

  • income level

  • education level

  • relationship status

  • spending habits

Related: How to define your target market: examples and types

6. Outline plans on product development and distribution

You can accomplish this step by identifying organisations that the business has partnered with to help manufacture its goods, provide services or distribute products to the consumers. This information can offer context on how organised and prepared the business is to address the problem of interest. It may also help to show an understanding of the business plan by being specific about the enterprise's partners and how they can help the company progress towards its goal.

7. Explain how the business aims to make a profit

Profits can be an indicator of success if the business focuses on financial gains. For starter companies, readers may understand that it can take time before a business becomes profitable and be more interested in how it plans to earn revenue in the future. If a company shows little ability to gain from a business description, investors and even potential employees may fear that the company can become bankrupt before meeting the set goal.

Terms associated with business descriptions

Being able to describe the terms below can help you know how to write a business description and clarify what to consider when deciding how to write one:

  • Business plan: You can describe a business plan as a document that outlines the goals of a business, the procedures a company has set to achieve those goals and the time frame within which they hope to attain it. The objectives of the organisation and the audience can determine the contents of the plan.

  • Business idea: A business idea can be a concept about a product or service that you may offer other people or businesses for money. The idea can help you determine why you started the business and may help you focus on a small target market.

  • Business description: A business description can be a part of a business plan that provides critical details about an organisation, such as the services or goods it offers and what differentiates it from other companies. It gives interested people a view of the business idea.

Related: 10 key business plan sections and why they're important

Tips for writing interesting business descriptions

The tips below can help you write more effective descriptions about a company:

  • Express the company's key characteristics: You can make the first paragraph extensively detailed with information about the business. Company characteristics can act as a pitch to communicate all the vital information that might immediately make the reader interested in the enterprise.

  • Provide high-level details: Since a business description is part of a business plan, more information about specific areas of the company can appear in later sections of the strategy. You can use the plan to give details that provide just enough understanding of non-critical parts of the company.

  • Show the business' passion: Writing an interactive business description can motivate a reader to study the rest of the business plan. Including a vivid description of the company's mission, its passion for the problem and what it can accomplish may capture the reader's interest.

  • Keep it short: The length may vary depending on the enterprise and how complex the business plan is. Since your focus may be on getting your reader's attention, keeping the description concise and verifying that each sentence contributes towards getting the reader's attention can be useful.

  • Proofread: A grammatical error may affect how a reader interprets your business description. After writing the summary, you can consider requesting someone who hasn't read it before to help you improve the description's clarity, flow and grammar.

Who can you target with a business description?

The audience that may interact with your written description can comprise:

Investors

Investors can be people who commit to helping a business achieve its profit expectations. They may read business descriptions to identify companies they wish to finance. If you are writing a report for a company hoping to get investors, including appealing information about the company, may encourage such readers to invest. You can do this by explaining what makes its business model unique and how the company plans to make a profit.

Potential employees

If the description aims to attract talented candidates for new roles in the company, helping the readers understand the company's culture may help achieve this aim. You can describe the passion and commitment that the people who helped start the company have and provide a timeline of the company's achieved and expected objectives. Since your interest may be in assisting the business attract employees with specific skills, you can research the preferences of the potential employees to help you describe how the company may be a fit for them.

Related: Employee Incentives: what they are and how to use them

Potential customers

For a business aiming to attract clients, you can write a description that shows how a company's product is exceptional. A unique product can show how the firm addresses a specific problem that competitors are unaware of or have neglected. Including details about the company's starting history and how the owners might have used minimal resources while helping earlier customers can portray the organisation's commitment to the interests of its customers. Expressing such devotion may impress potential consumers by showing them the company's willingness to serve them.

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