The business description section is divided into three primary sections. Section 1 actually describes your business, Section 2 the product or service you will be offering and Section 3 the location of your business, and why this location is desirable (if you have a franchise, some franchisers assist in site selection).

1. Business Description

When describing your business, generally you should explain:

	1. Legalities - business form: proprietorship, partnership, corporation. The licenses or permits you will need.
	2. Business type: merchandizing, manufacturing or service.
	3. What your product or service is.
	4. Is it a new independent business, a takeover, an expansion, a franchise?
	5. Why your business will be profitable. What are the growth opportunities? Will franchising impact on growth opportunities?
	6. When your business will be open (days, hours)?
	7. What you have learned about your kind of business from outside sources (trade suppliers, bankers, other franchise owners, franchiser, publications).

A cover sheet goes before the description. It includes the name, address and telephone number of the business and the names of all principals. In the description of your business, describe the unique aspects and how or why they will appeal to consumers. Emphasize any special features that you feel will appeal to customers and explain how and why these features are appealing.

The description of your business should clearly identify goals and objectives and it should clarify why you are, or why you want to be, in business.

 2. Product/Service

Try to describe the benefits of your goods and services from your customers' perspective. Successful business owners know or at least have an idea of what their customers want or expect from them. This type of anticipation can be helpful in building customer satisfaction and loyalty. And, it certainly is a good strategy for beating the competition or retaining your competitiveness. Describe:

	1. What you are selling.
	2. How your product or service will benefit the customer.
	3. Which products/services are in demand; if there will be a steady flow of cash.
	4. What is different about the product or service your business is offering.

3. The Location

The location of your business can play a decisive role in its success or failure. Your location should be built around your customers, it should be accessible and it should provide a sense of security. Consider these questions when addressing this section of your business plan:

	1. What are your location needs?
	2. What kind of space will you need?
	3. Why is the area desirable? the building desirable?
	4. Is it easily accessible? Is public transportation available? Is street lighting adequate?
	5. Are market shifts or demographic shifts occurring?

It may be a good idea to make a checklist of questions you identify when developing your business plan. Categorize your questions and, as you answer each question, remove it from your list.

The Marketing Plan

Marketing plays a vital role in successful business ventures. How well you market you business, along with a few other considerations, will ultimately determine your degree of success or failure. The key element of a successful marketing plan is to know your customers-their likes, dislikes, expectations. By identifying these factors, you can develop a marketing strategy that will allow you to arouse and fulfill their needs.

Identify your customers by their age, sex, income/educational level and residence. At first, target only those customers who are more likely to purchase your product or service. As your customer base expands, you may need to consider modifying the marketing plan to include other customers.

Develop a marketing plan for your business by answering these questions. (Potential franchise owners will have to use the marketing strategy the franchiser has developed.) Your marketing plan should be included in your business plan and contain answers to the questions outlined below.

	1. Who are your customers? Define your target market(s).
	2. Are your markets growing? steady? declining?
	3. Is your market share growing? steady? declining?
	4. If a franchise, how is your market segmented?
	5. Are your markets large enough to expand?
	6. How will you attract, hold, increase your market share? If a franchise, will the franchiser provide assistance in this area? Based on the franchiser's strategy? how will you promote your sales?
	7. What pricing strategy have you devised?

Appendix I contains a sample Marketing Plan and Marketing Tips, Tricks and Traps, a condensed guide on how to market your product or service. Study these documents carefully when developing the marketing portion of your business plan.