How To Write a Company Analysis for Your Business Plan

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company analysis for business plan
A company analysis is an important part of your business plan. It is a short description of what your business does and it holds surprises for people who read it.

What makes the short description so important? For one reason, the company analysis often shows why a business is unique or special in some way. This uniqueness makes an investor or lender want to keep reading.

Secondly, the company analysis is often surprising because, in just a few paragraphs, readers can learn the important facts about your business. These insights help paint a clear picture of what your company stands for and what it aims to achieve.

For these reasons, your company analysis tells your story and invites people to join in the story. The company analysis plays a big part in your business plan.

What is a Company Analysis in a Business Plan?

A company analysis is a section in your business plan that provides a brief overview of your company. This includes its history, mission and vision, products or services offered, target market, competitive advantage, organizational structure, and financial performance. It essentially summarizes your company’s key information that highlights its strengths and differentiates it from others in the market.

A company analysis is to showcase your business in the best light possible and show why it is a viable investment opportunity. It should be concise yet captivating, providing readers with a clear understanding of what your company does and what sets it apart from the competition.

Key Components of a Company Analysis

A thorough company analysis presents your business in a manner that is engaging and informative for the reader. It entails detailing the fundamental aspects of your enterprise, including the rationale behind its inception and the professional background that has shaped its journey. Additionally, it encompasses a chronicle of the business’s history and notable achievements to date. This analysis must emphasize the distinctive and compelling factors that forecast your business’s future success. These are the critical elements of a well-crafted company analysis:

1. Company Description

In this section, you’ll list the key facts of the business. These will be the facts investors or lenders are looking for. And, even though you are listing brief facts, add a few details to each to keep the interest of your readers.

  • Give the date the business was started. This is a key fact because the date establishes the formal start of your business.
  • Describe the type of legal entity the business holds. Explain whether the business is an LLC, C-Corp, Sole Proprietorship, or other legal business. This key fact tells interested readers what expectations you have for the revenue growth of your business.
  • Include the location of your business office. The location of your business usually makes a difference for investors and lenders because they prefer to invest or lend in a business that is located in the region where they operate.
  • Describe the current standing of your business. Is your business a startup? Is your business experiencing a high rate of growth? Is your business testing products and services for sale? The key facts in this description are critical for investors and lenders.
  • Describe the type of business. What industry does your business operate in? What products or services do you offer? What is the company’s business model? These key facts add more depth to the previous descriptions and are essential for investors and lenders to understand your business better.
  • Add other details that are key to your business description. Businesses aren’t one-size-fits-all. If your business is unique or unusual in a significant way, be sure to add details to help readers understand the scope of your business.

2. Business Background

Investors and lenders want to know about the past accomplishments of your business. Overall, the details you give will encourage investors or lenders to trust in the ability of your business to repay a loan or investment. The stage of your business, whether a startup or growing, will determine how much information you can offer. A growing business may share key facts, such as:

  • Number of customers served. A healthy number of customers served tells the investor or lender that your business is actively growing and has potential for future sales.
  • Employees who have been hired. The number of employees in your business suggests a comprehensive understanding of what a growing business requires and a determination to meet the expected sales forecast.
  • Sales targets that have been met. Every lender or investor will be motivated by sales targets or milestones that have been met. This information says that the company is strategic about growth prospects and is likely to repay any short-term financial obligations.
  • Products that have been built. The introduction of new or revised products indicates a company on the move. This is encouraging for lenders or investors.
  • Contracts with major clients. A long-term contract or a high-volume contract indicates a high rate of revenue for the new or growing business and is a very positive sign for investors or lenders.

A new business may not yet have many accomplishments, like major client contracts. However, offer descriptions about other distinctions you carry. Include a sentence about professional connections you hold. Describe why you started this business. Include a short description of your professional background to exhibit the solid foundation from which the new business can grow.

If your business is growing, you will want to write about why it is growing and how your business will capitalize on that industry growth. Include such items as funding the business has received and paid off, the number of products sold, or client contracts signed.

3. Unique or Distinctive Characteristics of Your Business

The last section of your company analysis is the one that really needs to shine. It tells the reader why your business is more than a good concept and defines why it will succeed. State or list the unique competitive advantage or distinctive characteristics your business holds. For example:

  • Introducing a product new to the marketplace.
  • Bringing a new-to-the-industry level of service for customers
  • Creating a high-productivity management team
  • Offering a patented or proprietary item
  • Holding a long-term contract with client

Describing unique aspects of your business is key because this type of information increases the perceived value of your business by investors or lenders.

How to Write the Company Analysis For Your Business Plan

Writing the company analysis for your business plan takes careful thought about the facts. The facts you offer should be the key facts that readers will want and need to know. The company analysis also takes careful thought because it should highlight the parts of this business that are most important to you. For these two reasons, take some time to sketch your thoughts and then follow these easy action steps:

Action Step 1: Write the Company Profile

From your sketch notes, write out the key facts we’ve outlined:

  • The date the business was formed
  • Legal structure
  • Office location
  • Stage of the business
  • Type of business

Add other profile details when they are important for your business. For example, if you have a mobile car detailing service, your office location may not really matter, but the type of vehicle you use to drive to client appointments certainly does. You’ll want to include that valuable information.

Action Step 2: Write a List of Business Accomplishments

Readers will want to read your Business Plan if you include the information they need. This means you will start the list of business accomplishments with positive statements about your growing business, as we’ve outlined. Key facts will keep the interest of the investors or lenders:

  1. Revenue milestones that have been met
  2. Client contracts
  3. Prior funding and repayment
  4. Promising research
  5. Collaborations/Partnerships

Don’t skip this important section if you are a startup business or haven’t yet realized any sales revenue. Use other examples of your own professional accomplishments that will support your new business. Also include any strong connections you may have in the industry your business is entering.

Action Step 3: Write about Unique or Distinctive Characteristics

Writing about the unique characteristics of your business is probably the most important way you will encourage investors or lenders. Sketch out this component before writing it and seriously consider every part of your business that offers a unique or distinct value from any competitors. Include every key fact that supports this effort, even if it seems too small to mention. For example:

  1. Add past successes in business
  2. Include any technology you’ve created
  3. Add patents, trademarks, and copyrights in your name or the name of your business
  4. List past partnerships that demonstrate a positive outcome

This component of your Company Analysis will capture the attention of every reader when it offers a glimpse into all the business can accomplish in the future.

Company Analysis Examples

When creating a company analysis, it is beneficial to review models from various industries to understand how to effectively communicate key details and unique attributes. Below, we provide two distinct examples. These examples serve as a practical guide to structuring your own company analysis, ensuring it is comprehensive and compelling for potential investors or lenders.

Example #1 – Haul-It-All Transport Company Analysis

Company Profile

Haul-It-All Transport, officially established on June 15, 2010, is structured as a Limited Liability Company (LLC). Our main office is located in Dallas, Texas, a strategic hub that allows us to efficiently cover both regional and national markets. Currently, Haul-It-All Transport is a mid-sized business, experiencing a growth phase, specializing in freight transportation services.

Business Accomplishments

Since its inception, Haul-It-All Transport has achieved several significant milestones:

  • Revenue Milestones: Over the past five years, our annual revenue has grown by an average of 15%, signaling the company’s financial health and increasing market demand for our services.
  • Client Contracts: Secured long-term contracts with multiple Fortune 500 companies, solidifying our reputation as a reliable logistics partner.
  • Prior Funding and Repayment: Successfully obtained and repaid a $2 million business development loan, demonstrating the company’s financial performance.
  • Promising Research: Invested in cutting-edge logistics technology to enhance route optimization and fuel efficiency, which positions us at the forefront of innovation in the transport industry.
  • Collaborations/Partnerships: Established strategic partnerships with major suppliers and industry leaders, facilitating smoother operations and expanded service capabilities.

Unique or Distinctive Characteristics

Haul-It-All Transport prides itself on several unique attributes that set us apart from competitors:

  • Innovative Technology: Implementing state-of-the-art tracking systems and logistics management software that ensure efficiency and transparency in freight transportation.
  • Experienced Leadership Team: Led by seasoned professionals with decades of experience in the transport and logistics industry.
  • High-Quality Fleet: Regularly upgraded fleet of trucks that meet the highest safety and emission standards.
  • Customer-Centric Approach: Commitment to exceptional customer service and personalized logistics solutions, resulting in high client retention and satisfaction.
  • Environmental Initiatives: Active participation in green logistics practices, aiming to reduce our carbon footprint through the use of fuel-efficient vehicles and sustainable practices.

Future Outlook

Haul-It-All Transport is poised for continued growth and expansion. Our strategic investments in technology and human capital will enable us to capture new market dynamics and enhance service offerings. With a solid foundation and a visionary approach, Haul-It-All Transport is dedicated to connecting businesses seamlessly to their markets and driving value for all stakeholders involved.

Learn More: Trucking Business Plan Template

Example #2 – Golden Gate Health Services Company Analysis

Company Profile

Golden Gate Health Services is a premier medical practice situated in the heart of San Francisco, CA. Established in 2010, the company is dedicated to providing exceptional, patient-centered healthcare to individuals and families within the community. Operating as a primary care provider, Golden Gate Health Services specializes in preventive medicine and chronic disease management. The practice’s involvement in cutting-edge medical advancements and technology ensures that patients receive the highest standard of care.

Business Accomplishments

Since its inception, Golden Gate Health Services has achieved several key business accomplishments, bolstering its reputation as a reliable healthcare provider:

  • Revenue Milestones: The practice has continually met and surpassed revenue milestones, reflecting its growing presence and patient trust in the San Francisco area.
  • Client Contracts: Golden Gate Health Services has secured long-term contracts with major insurance providers, enabling cost-effective care for patients and ensuring sustainable growth for the practice.
  • Prior Funding and Repayment: The company has successfully obtained funding for various projects and promptly repaid all associated debts, demonstrating the company’s position and responsibility.
  • Promising Research: Ongoing research in preventive medicine innovations positions the practice at the forefront of medical advancements.
  • Collaborations/Partnerships: Strategic partnerships with local hospitals and specialist clinics enhance the continuum of care provided to patients.

Unique and Distinctive Characteristics

Golden Gate Health Services stands out in the healthcare industry due to several unique and distinctive characteristics:

  • Holistic and Comprehensive Care: A focus on holistic care ensures patients receive not only treatment for their ailments but also guidance on long-term wellness and disease prevention.
  • Advanced Technology: Utilization of the latest medical technology to improve patient outcomes and streamline care processes.
  • Experienced Team: A team of dedicated and experienced physicians and healthcare professionals committed to delivering high-quality patient care.
  • Community Focus: Active engagement in community health initiatives to improve the overall quality of life for San Francisco residents.
  • Patient-Centered Approach: An unwavering commitment to patient-centered care, ensuring individualized treatment plans that cater to the specific needs of each patient.

Through its dedication to excellence and innovation in healthcare, Golden Gate Health Services has established itself as a cornerstone of patient care in San Francisco. This comprehensive approach, coupled with a strong foundation of business accomplishments, positions the practice for the company’s growth and success in the future.

Learn More: Medical Practice Business Plan Template

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