Business Plan: Company History
FAQ: The Company History Section of a Business Plan
Even though the company history section of your business plan is relatively small, you'll still want to invest time into it. Here's why, and how.
The Company History (or Background) section of a business plan comes after the Executive Summary, and is usually no more than one page long. The company the business plan is for should be explained in full in this section, although what details are offered will depend on the type of business you are writing the business plan for, and how long the business has been running. In the case of startup businesses, the Company History will detail where the business is at the time the business plan was written.
What Is the Purpose of the Company History Section of a Business Plan?
Lenders will review this section of a business plan to see who is behind the business, how the business idea came about, and the basic background the business entity has in the marketplace.
When Should I Write the Company History Section of a Business Plan?
You can write the Company History section of a business plan at any time. Many business owners like to get the Company History section finished first (or towards the start of the process) if only because it's relatively short and easy to take care of.
What Do I Need to Cover in the Company History Section of a Business Plan?
The following things should be covered concisely in the Company History section of all business plans:
- Where the idea for the business came from in the first place;
- What progress, if any, has been made on the business idea;
- Any troubleshooting or problems encountered to date with the business plan; and
- Any and all plans for short-term growth.
As well, startup businesses may want to add the following information about the key players attached to the business:
- Their educational background;
- A list of relevant businesses that the owners have been involved with previously;
- Any previous business startups that anyone has been a part of;
- Technical skills related to the day-to-day running of the business;
- All specific expertise related to the businesses' industry segment;
- Any areas of weakness within the businesses' key players, and how the team plans on overcoming them (or at least allocating resources towards them); and
- Any industry-related clubs or professional associations that any of the key players are members of.
Finally, remember that the Company History section of a business plan shouldn't be a tell-all of who the people starting or running the business are, nor should it detail every success and/or failure of the business. Consider it an overview where possible, and make sure to edit this section of the business plan well so that it is as succinct yet descriptive as possible.
Looking for more information? Why not check out these Free Business Plan Templates, Business Plan Writing Contests, and the Best New Business Ideas for 2008? Or, go back to the Free Business Plan How To.
