The overview is the first part that investors see. It gives the investor an initial impression of you and your plan, so it should be printed correctly and presented clearly.
Section 2: Business and Prospects
This section addresses a large number of key topics that will help investors understand your business. Each of these is important, but it's important to have a comprehensive overview of the whole picture and try to show how your business is unique, if not explicitly detailed. Show the reader what makes your business unique among the businesses of the world. When reading this chapter, the investor will be trying to identify the "keys to success" in the industry. In other words, he will try to prove that these two or three things must be done in a timely manner to be successful in your business situation. Note that the numbering system has a separate number for the title and a sub-title containing a decimal, such as 2.01.
2.01 Summary
The opening paragraph begins with the sentence, "The company's registered office is located at ......" and lists the company's office address, telephone number, and the number of people who need to be contacted. the company's office address, phone number, and the individual to be contacted.
2.02 The essence of the business
In this section give an outline of the business you are in. As an example, you might say, "Our company designs, manufactures, sells, and repairs microcomputer-based software that controls medical diagnostic equipment used to monitor outpatients" . Stating what your company does in one concise sentence is probably the best way to start. Next, you need to describe your product or service in a generalized statement. You need to let investors know about your product or service in as few words as possible.
2.03 History of the business
You need to say in this section when the company was formed, and in particular when the first product or service started, and the most important milestones the company has experienced. The business history section of the report must be short and concise. If the report is longer than one page, or at most, two pages, you've already said too much about the history. If the company had a particularly exciting experience, that might be a special reason to encompass a large section of history, but by all means keep it concise.
2.04 Prospects for the business
Say what the company's year-by-year growth plans are and point out the dividing lines. In effect, investors need to understand how you will grow from where you are now to where you want to be in five years. While it is important to keep this section of the plan concise, there is considerable freedom in formatting it. You could simply state that over the next five years you intend to continue producing your two basic products, and that by the third year you will have introduced another similar product. Following this approach, the outlook for your business will be succinct and to the point. Additionally, if you anticipate going through many changes before reaching a point of stabilization, you should point out what changes will occur. Investors need to know exactly what the company must do to be successful.
2.05 Uniqueness
Every business plan given to investors should have some uniqueness. Is the management unique? Product or service unique? Production process unique? A unique financial base? All of these can be included. The important thing is to have something that makes your company stand out against other investment opportunities that are equally available to investors. Investors don't like to invest in "cookie-cutter" companies. They want companies with a unique business position. In a separate section like this one, or throughout the chapters of your business plan, you'll want to emphasize what makes your company unique. If there is a new product, a patent for a production, or some other particularly unusual aspect of your business, it should be listed in a separate chapter like this. In addition to including this section, business owners should also highlight the company intermittently throughout the business plan.
2.06 Products or Services
In this section you want to describe your products or services precisely, in a way that leaves no doubt in the reader's mind about what you produce or plan to produce. If you have several products or services, describe each of them in a separate paragraph. You should describe the price of the product, how the price was determined, and the gross profit number. It is easy for business owners to be flippant about pricing their products. Take enough time to consider all the factors that affect the pricing of your product and be sure that you can explain the rationale behind the pricing in frank and logical terms. Is it because competition is forcing prices in that direction? Is the price high because you can get away with it? You must be prepared to answer these questions.
2.07 Consumers or buyers of your product
Describe the consumers of your product in detail: who uses it, what they use it for, and why they use your product or service. Do they buy your product only because of the price, or for any other reason? What need does your product or service fulfill for the consumer? In this section you will also list your product's top three customers, along with the value and quantity of their purchases. This can be done in columns, with the first column being the company, the second column being the value, and the third column being the number of purchases. If the investor is interested in your company, you give him a list of customers. At the beginning of your contact with the investor, this part of the plan will give him an impression about your business.