The company history explains the background of your company and the people involved in managing and operating your business. This section provides the reader with information as to how you came up with the idea for the product or service you are selling as well if you have the drive and expertise to make the business thrive.
This component should act as an overview of the business history and not go into detail about each item discussed. Much of the information outlined in this section will be explained in more detail in other portions of your business plan. Of course, the length and content of this section will be dependant on how long the business has been established for. A new business will not have as much historical information as one that has been around for years.
At the very least you will want to include where you came up with the idea for the business and what you have accomplished so far in starting the business, problems that you have faced, and your short-term plans for growth. Other aspects you might wish to cover in this section, especially if this is a new business, are your educational and training background, previous business you have stared and why you are not doing that business now, your expertise in the products or services, your weakness and how you will handle them, and any professional organizations that you belong to that relates to the business.
Your main goal in writing this section of the business plan is to sell yourself and your idea to potential investors (banks, Small Business Administration, etc.). Be honest in what you write and be sure to place an emphasis on your expertise.
Sample Company History Summary
The Internet Craft Bazaar will be a sole proprietorship company owned and operated by Jane Doe. Jane has sold handmade crafts at local craft shows for the past 20 years. She is also a graduate of The American Business School and holds a Bachelor’s degree in Small Business Administration. Her formal education included courses in e-commerce.
The concept of developing this business came from the owner’s passion for crafts and her desire to help other crafters sell their handmade goods to a global market. This business will be operated from the owner’s home and will be done entirely on the internet.
This post is part of the series: Business Plans
Advice to help you create a solid business plan for your company.