Description of Business and its History

Include a detailed description of the type of business operation. An existing business should include an extensive history. The SBA puts out management aids pamphlets on all of the following types of businesses. Be sure to obtain one on your type of business for specific items to add to your business plan.

When describing any of the below business operations also include:

• Appealing factors of the business
• Factors that will determine the success of the business
• Hours of operation
• How are you going to run it (day-to-day operations)

MANUFACTURING

• Description of manufacturing process.
• Describe levels of operations. Estimate the capacity and the current percentage utilization of plant and equipment.
• Describe the plant layout.
• Is the operation job shop or mass production oriented?

RETAIL

• Complete description of operation. Estimate sales volume and the current utilization of floor space.
• Describe the store layout.
• Is the operation high volume or high price oriented?
• What control systems and inventory techniques are you going to use?

WHOLESALE

• Complete description of operation. Describe relationship with manufacturers, retailers, and other wholesalers.
• Estimate the capacity and current utilization of warehouses and equipment.
• Is your warehouse and shipping operations efficient? (Describe it)

SERVICE

• Complete description of operation.
• Estimate the capacity and current utilization of operating area.

CONSTRUCTION

• Complete description of operation.
• Type of construction.
• Description of contractors. (Subcontractors, employees)

BUSINESS HISTORY - (Existing Business)

• When and by whom was the business founded?
• Why is owner selling business?
• Purchase price and show how derived.
• Market growth and sales trends since start up.