The first fundamental section you should include in your plan following the Executive Summary is the Business Description. This is the section to list all the details, both big and small, about your business. First, talk briefly about your business name and how it will relate to your donut product. Hopefully, you have already given this a great deal of creative thought, kind of like naming your child. You will need to name the business structure you will be using for tax purposes such as a limited liability company, a partnership, or a sole proprietorship. There are pros and cons for each, so be sure and consult your legal and financial advisors. Do your homework on this one. If the business will be formed by more than one person who will be responsible for what?
Mention that as a food vendor you will obtain a certificate from the local health department stating you know how to safely prepare and serve food. And what about a license to do business? You will want to describe the type of donut you will be making for instance large, small, glazed, cake, cream filled, etc … This is where you let your product shine so that investors will buy-in to the concept. Maybe you plan on introducing other products later on like ice cream or funnel cakes. Talk about your projections and where you want your company to be in one year, three years, and five years. Will you offer any additional products and services? Drinks? Candy? Catering?
Investors will want to know where your business will be located and why you selected it. Will the donuts be made in a traditional storefront maybe on a seaside boardwalk frequented by tourists? Or at a busy shopping mall? Will you travel on a concession trailer from festival to festival?
List some specific dates for millions such as buying your equipment, securing the location, incorporating, opening your doors to customers, etc … Again, these projections will instill confidence in those who read the plan and let them know that you are serious. List some immediate goals and some long-range ones, but make them attractive and attainable. Banks and investors will know unrealistic expectations when they see them. If you have already done some ground work towards starting your company write about it. Let your light shine and toot own horn as investors will take notice.
If you are seeking outside funding from a bank or investor include some basic financial information in this portion like how much money you will need. Summarize what the money will be used for. Will you have any employees?
Think of the Business Description as your foundation of facts that will carry through to the other sections of the business plan. From here you will talk about why your business will be successful and how.
