How to Write a Business Description: 12 Tips

A company description provides a summary of key features of a Business. Such as What the company does and what makes this company different from the others. A company description should be able to present it’s to the audience with a clear understanding of the scope of the business idea.

Any business with a perfect description upholds its standard of operation and professionalism in its activities.

It should also demonstrate the company’s position in the market to the creditors and investors and the benefits it can provide to its future clients.

The business description should be kept up to date as the business evolves with time.

In order to prepare an effective company description, there are two questions that must be answered.

  1. What information to put in the description?
  2. How to Put the information in the description?

What Company Information To Put In The Description?

The company description is used to pitch the investors and lenders to peak their interests. The information provided should be able to answer Who, What, Where, When, Why and how questions asked by the interested parties in an instant.


Who is the founder?

what is the name of the company?

The company description must verify the name of the company and the identity of its founder. Because the lenders and investors will wish to know who founded the company.

Who is the targeted customer?

While providing company description it is important to know who will the target. Otherwise, no one will show interest.


What kind of product or service will the company provide? the  

If the investors don’t show interest in the product or service of the company they will simply ignore the concept.

What are the goals of the business?

It is important to set realistic goals that might get the attention of investors.


Where is the Business located?

The location greatly affects the judgment of an investor.


How will the business structure be formed?

Will the business function as a sole proprietorship, partnership or corporation?

Describe the business structure that was chosen and why it was chosen.  


When will the business plan be implemented and show the result?

The investor will likely wish to know when the business plans will be implemented and what kind of result will it bring. And once the missions are accomplished what will be the next move of the business.


Why should a customer buy the company’s product?

It is important to explain why the company’s product will prevail in the market and will be different than the competitor’s products. This will make the investors aware of your company standpoint and future possibilities of investing in this company.

Other than these questions there are many additional types of information that can be included depending on the nature of the company. A company description can also include notable achievements and accomplishments (If There are any)

  • Awards

This section will include any award received by the company for its various past activities and performance. This section plays a vital role to give a positive impression of the company to the audience.

It also boosts the morale of the people working for the company. Awards have a deep connection with a company’s Image

  • Certifications

This section includes Certificates received from various illustrious and high-level institutions for the activities performed in the past and present by the company. This section shows that the company has been recognized by powerful and Illustrious individuals.

  • Special agenda and projects

This segment includes the major projects undertaken by the company and its impact on various sectors. The project included here is the project that the company has completed successfully and consider it as their best work so far.

It also includes project they are currently working on and the project they will work on the near future.  

  • Testimonials

This section includes a testimony of various clients of the company. Usually, it includes all the positive aspects of the company by the clients who were satisfied with the service they received. This is a powerful tool to inspire others. Unfortunately, it is underutilized.  

  • News or media recognition

This section includes any incident by the company that caused media attention. It shows that the company is not a nameless organization and the media is aware of their activities and gives importance to what the company does.    

Many company descriptions also include various other items. If any of the items below is noteworthy for the business then they should also be included.

  • Yearly sales

This section gives a brief comparative analysis of yearly sales, that shows how much the company has improved over the years.

  • Financial targets

This section shows the individual and organizations that the company will reach out to for financial aid. Usually this section   

  • Number of employees

This section explains the approximate estimation of the number of personnel currently employed by the company.

  • Partners

This section shows the individual or firms that are business partners with the company.

  • Photographs

This section provides photographs of the company logo, Headquarters, and high-level officials of the company

How to Put the information in the description?

While the”What” Descriptions give insights on why people should care about the company description and “How” it is prepared shows the mindset of the businessman along with his strength of focus and ambition.

1. Do not start with the company name

The name of the company is already written above the description. Mentioning it again is unnecessary. As it will be redundant. It might also be viewed as immature or unprofessional. It might even get the readers annoyed.

2. Show Passion

Express the passion and excitement in the company description as to why the company was created, how it was created and what is the purpose of the company.

The passion should be shown in the manner of the presentation. It should also get the audience interested in the entire business plan.   

3. Skip “We are…”

“We are” isn’t always important to be in the first of the sentences. Everyone who will read the company description will know from the very beginning who started the business. Using ‘We are” repeatedly will simply annoy the readers. It is also a seen as immature and unprofessional.  

4. Don’t explain the pain point. Explain the solution.

It is important not to focus on the limitations and adverse situations faced by the company. Rather use that adverse situation as a baseline and provide reasonable and practical solutions to that problem.

The investor doesn’t read the company description to realize how much you are going through. They only care about how you are going to go through them.

5. Do a Length Check

Sometimes it is possible to get carried away and use more words than normal to describe the company. Once the description has been drafted, recheck and remove all the unnecessary words and make it specific and brief.

6. Provide High-Level Information Only

There will be some information on company descriptions that will be explained in other segments of the business plan . For such information, It is enough to provide a high-level brief and leave the rest of the details of those specified segments.

7. Be Honest

Instead of using phrases like ‘an advanced…” and  “the future of …” and waste spaces it is better to be specific and stick to the major key points. It shows the audience how serious the company is on its products rather than superfluous words.

8. Be Unique

In this day everyone has a global market, a cloud-based system. If the company uses these term as the major features than there is no difference between the other companies and this one. It is important to bring something different to the people. Uniqueness is as essential as conveying the value proposition.

9. Hit hard with the words that embody your solution

Provide extensive knowledge regarding what the company does and what market it is a part of. Many investors and lenders usually focus on these two key points before making a decision.

10. Proofreading

It is advised to have the entire description proofread before supplying it to the audience. There might be Typos, Grammatical errors or other issues that can give a negative impression by the audience. The entire document should be read multiple times to ensure everything is prepared properly.

At the end of the day everything depends on these three elements :

  • Be unique.
  • Be consistent.
  • Be concise.

Not all Busines are same.  The company description that worked for one business may not work for another. There are many elements and sections within a company description. Depending on the nature of the business, the number of sections usable is also changed.

A company description for an existing business is not the same as a description for a starting Business.

There are some basic elements that will be present in both but the overall Document will be different. The side and format of the description will also vary.

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