written by: N Nayab•edited by: Elizabeth Wistrom•updated: 5/19/2011
The key ingredients of writing business charters include an executive summary, mission statement, company background, product description, market analysis, project time line and staff analysis. Writing business charters also require paying attention to style.
slide 1 of 8
When writing business charters, the document should describe the core vision and mission of the company and outlines the strategy to implement the mission and vision. It also should include related information such as organizational structure.
A good business charter not only expresses the company’s vision and details a road map to achieve the vision, but also provides flexibility to reconcile the changes in vision and the approach.
The hallmark of a good business charter includes not just precise information, but also
good visualizations such as graphs to simplify figures
figures and specific points in bulleted text rather than plain descriptions
Simple and easy flowing language with thorough grammar and spell check
slide 2 of 8
The business charter usually starts with an executive summary that outlines the contents included in the subsequent pages. This entails listing down of the major points included in the business charter without explanations or supporting details.
Must-have details in the executive summary include the name and nature of business, list of products and the expected customers, risk factors, and an overview of project timeline.
slide 3 of 8
The mission statement articulates the goals and aspirations of the business, or what the company plans to achieve. A clear and achievable mission statement is the foundation for success and the sure way to convince investors and other stakeholders about the viability of the business
A good mission statement clarifies the company’s purpose and is:
Concise, not more than few sentences
Specific, detailing the purpose of the business or activity
Measurable, or easily quantifiable
Action Oriented styling
Realistic or achievable within a specific period as opposed to idealistic visions
An example of a good mission statement is that of Coca-Cola. In its website, the company lists its mission as:
“The ACT Planning and Land Authority is responsible for long term strategic planning, assessing development and lease variation applications, monitoring compliance with approvals and regulating the construction industry. The Authority also provides high quality spatial information, mapping products and data to facilitate decision-making across government and the community."
“Conduct workshops, conferences, and other meetings to advance both the state-of-the-art and the state-of-the-practice of computing systems integration with current and emerging data communications and computing technologies."
slide 6 of 8
The business charter is incomplete without a market analysis. The market analysis covers important commercial information such as
why people require the product
target customer base
survey of competition
key selling points compared to competitors
The market analysis is central to the business charter, and needs listing out in detail with supporting evidences such as references to research reports, graphs and the like. This section is also the most flexible part of the charter. Unlike the objectives, company background and product specifications that remain fixed once approved, the market analysis can change with changes in the external environment.
slide 7 of 8
Project Time Line
Another critical inclusion while writing business charters is the project time line, or the systematic time based implementation schedule once the funding for the project is in place. The basic ingredients in this section includes details on deliverables regarding
compliance with statutory requirements such as licensing
setting up of physical infrastructure
establishing marketing infrastructure
actual production timeline
slide 8 of 8
Human resources play a critical role in the success of any business, and the availability of talent is a good selling point to woo investors.
A good business charter includes:
profile of team members with key responsibilities of each team member. This serves the dual purpose of impressing investors and providing broad guidelines on the roles of each team member.
background of promoters
expected staffing in case of start-ups without a team
Like the market analysis, the staff profile also remains a flexible component of the business charter, usually subject to frequent changes with the recruitment and resignations of key staff.