How To Write A Business Profile

How To Write A Business Profile (Who We Are) (Extracted from Stupid Writers - Ojijo’s Guide to Writing Articles, Books, Reports, Plans, Profiles & Proposals, By Ojijo) What is the Business Profile? The business profile is an essential part of the business management, and business system. It is a quick reference for banks, government, shareholders, and service providers. The business profile is a historical document, and it provides the company history in its corporate affairs, as well as operational affairs. Subsequently, it is divided into two parts: corporate history, and operational history, with the following sub divisions: This ensures a clear description of company’s corporate history; operational history; growth and valuation; strategic partners; leadership; and corporate social responsibility initiatives. The profile provides a quick overview of company operations at a glance. The leadership system deals with the staff of the business, and covers the board, key management, and staff. It addresses the corporate structure, leadership profile, management structure, and staff skills and motivation. 7-Ps of Business Profile Business profile is divided into seven (7) sections, namely: Philosophy People Products Processes Partners Profitability Plan (Future) Philosophy This section of the profile indicates the legal entity of the business (for instance, it could be a company limited by shares, or partnership, or a sole proprietorship); while also listing the history of operations, and current offices/address of the business. It also lists the ownership of the business by indicating names of owners, and their ownership value/volume, in terms of percentages, and or shares. The section on company ownership indicates who owns the company, and by how many shares or percentage. This should be evidenced by attaching the memorandum and articles of association as appropriate. The first part is a description of the legal entity of the company. This section outlines the name of the company; the legal association; when and where it was registered as a company; the nature of business it is doing; and whether it owns the business concept/production process/patent. There are two types of locations for companies. The first one is the physical address where it operates from, and this might just be an office to meet guests, clients, etc. a company could also have a production facility, which may be in an industrial complex, or somewhere else. However, be that as it may, the company should clearly indicate the locations of these facilities in the profile, and why the locations were chosen, as opposed to other locations. This includes the company legal entity, mission, vision, values, licensing, registration, tax payment info, etc Legal Entity This indicates whether the company is a company limited by shares, a sole proprietorship, a partnership, or a collective investment scheme, that is, a cooperative, association, society, or a trust. Vision The vision of the company is the final picture that the organisation wants to paint when people use the products. For instance, if people use an organisation offering water, then the final picture is, ‘healthy people enjoying safe water’; and if the organisation is selling telecommunications services, then the final picture is, ‘people enjoying affordable and reliable communications.’ The vision is the final outcome of the business. It is a statement of what benefits shall have accrued to the consumers when the business is fully operational. My vision is the picture of my dreams realized. Helen Keller, the blind, deaf and dumb motivational speaker and teacher who was the first such disabled person to earn a bachelors degree was once asked, ‘what would be worse than being born blind’, and she responded, ‘to have sight but no vision’. The vision is the key that will keep my business focused. Hubert H. Humphrey said, ‘What I see is what I can be.’ Indeed, half the battle in life of getting what we want is worn when we know what it is that we want; the other half is worn when we do what we must do to get it. Napoleon Hill advises us thus, ‘Cherish your visions and dreams, as they are the blue print to your achievement.’ The vision of an investment club is a state of financial independence. Mission The mission of a company is the main objective of the company; the main activity it will be engaged in. A mission statement is a simple way for employees and management to stay focused and aware of the goals that they have set out for the company. The mission statement will guide how the company is going to be organized and how it will or is going to reach the goals. The mission statement should be written down and well known to each member of the company, and any future members should have a copy of the mission statement. The mission is the main activity that the company sets out to do. Objectives/Goals The objectives of the company are the end result of all activities; which is financial. The objectives are shouldered on the key operational areas of having an effective production system (staff, procedures, and supplies-internal processes) to produce the best product (product development), and deliver to the market (sales, marketing and distribution), while also contributing to the other members of the society who are not immediate stakeholders (community service). It is very important to have common objectives in order to measure achievement and achieve optimal results. My company goals are the milestones; the targets; the various steps I want to reach as I move towards realizing my objectives. The goals, like the objectives, should be on the four (4) major areas of effective production system (staff, procedures, and supplies-internal processes); the best product (product development); delivery to the market (sales, marketing and distribution); and contribution to the society who are not immediate stakeholders (community service). For this reason of similarity, most companies will list goals as objectives and vice versa. The goals need to me S.M.A.R.T. Specific-knowing exactly what I want, i.e., $1 million investment portfolio Measurable - ability to track progress Actionable- knowing the steps needed to achieve the goal, i.e., by saving and investing my money Realistic- being in the realm of possibility, i.e., $1 million is within my saving and investing abilities Timely- knowing when the goal will be achieved, i.e., 2017 Values The company values are the standards which the company is committed to live by, and they include, but are not limited to, integrity, customer service, value addition, innovation, and community service. They are listed as bullets in the profile. Corporate Social Responsibility (CSR) This part lists the corporate social responsibility initiatives of the company, as well as activities carried out by the staff as well as the industry associations of the company, including the various professional networks, market and industry associations, chambers of commerce, and organisations which the company is part of. Partners (Suppliers) I will list the suppliers of the company, the products they supply, and their contact details. It is important, for internal consumption, to list why we prefer the various service providers. This includes both suppliers of goods/raw materials, as well as suppliers of services to the company, like utility services, as well as those who supply the company’s finished products. Suppliers I will indicate who we will partner with to source for supplies, manufacture the solution, and distribute to the end user. Suppliers include utility service providers (rent, water, electricity, internet, telephone, cleaning, etc); professional service providers (lawyers, accountants, bankers, etc); and raw material providers (packaging, equipments, etc). Industry Partners These are the companies that supply company products to the market, also refered to as commission agents, sales companies, etc.  People (Staff) The profile should also indicate the staffing of the organisation, including technical expertise, as well as number of staff. These also include consultants and advisors, and professional service providers. Mediocrity is infectious. A smart business leader surrounds himself with the smartest and brightest brains. During a recent interview with a local Nigerian newspaper, Dangote said of himself: “I always make sure I hire people smarter than me.” Only hire the very best, for a general is only as good as his lieutenants. Every member of the organisation should know how their daily activities impact the company’s profitability and market share/market capitalization/market share. The profitability is why we are in business; the market share will ensure scale, and consequently, brand recognition, and brand building. Principals This profile should indicate the shareholders, and or owners of the company, that is, the ones who fund the operations of the entity. Management I should include a brief on the management and directors, indicating their expertise, profiles, and roles in the company. Staff I should include the number of staff, and their classification, e.g., professional, casual; and also their profiles.  Processes Introducing Business Processes (Operational Plan) Business processes are the sum total of all systems, steps, or procedures which lead to the production/manufacture/acquisition of a product, marketing, sales, and customer retention. It also covers at its core the human resource strategy. The areas involved are: Entry Strategy (Barriers to Entry) HR Plan Production Plan Marketing Plan Sales Plan Customer Retention Plan  Product Product Description This part of the profile lists the products, describing how the product looks like, size, shape, colour, feel, texture, and quantity. Product Operation/Development This section of the business profile lists the process of product operation, for instance, whether it is plug and play, or cooked, or rented, or mixed with another implement. This is the process of developing new products, and or improving current products. I will also indicate how our product will be undergoing research and development to make it better. I will also indicate the process of obtaining the final product, be it processing, software design or through outsourcing. Why The Production System- New Product Development In business, new product development (NPD) is the complete process of bringing a new product to market. There are two parallel paths involved in the NPD process: one involves the idea generation, product design and detail engineering; and the other involves market research. Johann Wolfgang von Goethe, a German writer, pictorial artist, biologist, theoretical physicist, and polymath, noted decades past, ‘Nature knows no pause in progress and development, and attaches her curse on all inaction’ A good company will allocate a percentage of gross income is returned to itself, towards research and development, towards manufacturing of products and towards company profits. Brian Tracy writes, ‘Invest part of your income in yourself (self-development) in order to guarantee your future.’ This is important because everyone wants to partner with a company that is cutting edge and continually evolving with the marketplace. No one wants to be left promoting a product that is no longer in demand. Additionally, this can help my company to improve its market position. Harvey S. Firestone confirms, ‘The growth and development of people is the highest calling of leadership.‘ The company is a sum total of individuals. Product development may involve modification of an existing product or its presentation, or formulation of an entirely new product that satisfies a newly defined customer want or market niche. Research and development is one of the means by which business can experience future growth by developing new products or processes to improve and expand their operations. Product Benefits This section of the business profile lists the benefits of the product, both to primary consumer, as well as related benefits to the macro economy, environment, etc.  Profitability (3Cs) Profitability is the reasons why we start businesses. Indeed, without profits, a business has no reason of holding that name-business. I need to show, as part of my profile, that my business is making money, and I show this by addressing three issues: cashflow, clients, and capital. Clients/Customers I need to list our current clients, to indicate that we are making sales. This section should indicate all revenues the company is making currently, and the sources of such. This is indicated in the profit and loss statement, and notes to the same. Cashflow It is important that I indicate that the business is liquid, and hence, a cashflow statement will be important. This should clearly indicate all sources of cash, uses of cash, and the difference, which should be a surplus, and if not, should be clearly explained. This is indicated in the cashflow statement and the notes thereto. Capital I also need to show in the profile that my company has capital, and this is indicated in the balance sheet. I should clearly indicate the form in which I hold the capital, whether in investments, or equipments in the company, or inventory. The details are to be found in the notes to the balance sheet.  Plan The plan is the last part of the profile, and indicates to the investors, and or potential clients, that we have a future, and a plan to meet that future. The plan should indicate the following things: Growth Plan A company grows in one or all of three ways: in profits, in capital and in market share. The growth in profits is realised through more sales, and or bigger margins on sales. I need to indicate how I will sell more, either through new products, or more volumes of sales of the current products. On the other hand, growth in market share is a result of more sales, and hence, more revenue; and this is in direct relationship to the brand visibility. I need to clearly explain the strategy to be visible, recognised, and dependable as a product, and hence, a brand. People buy form the same person again and again because of assured safety and peace of mind: that they will get what they want, no matter what, because they have always got it, or their friends have always got it. This is the essence of a brand. Finally, the company grows in its capital by either investing in its plant, machinery and equipments, and or carrying out external, indirect investment, in other investment vehicles including other company’s stocks, debt instruments, and or alternative investment vehicles like real estate, commodities, forex exchange, etc. The company can also realise capitalization by listing in the stock market, and hence, raising the required funds and expanding the size of their asset base, and or networth. I can get myself a copy of Invest: Ojijo’s Guide to Financial Investments & Alternative Investment Products for a complete list of other investment vehicles. The profile must hence show the strategy for selling more; the strategy for making more profit; and the strategy for increasing brand visibility, and hence, building the brand. To show growth, I need to indicate: Future Products Sales/Financial Projections Exit Plan In this category of the profile, I indicate how I will exit, and or how an investor with me can exit. The exit hence covers three types of exit: Exiting the market: This involves leaving a geographical market, and or leaving a category of the market, for instance, an insurance company stopping to sell life insurance products, or a real estate company stopping to offer residential houses as its products. Exiting the Company: This option offers the investors and company shareholders an opportunity to liquidate their investments in the company. This can be done through a private sale (where the exiting shareholders sell they shares to new, or current shareholders); and or management buyout (where the exiting shareholders sell their shares to the management of the company and or to the staff of the company). ………………………… About Ojijo Ojijo Pascal, a lawyer, author of 49 books, public speaker, consultant, entrepreneur, investor, poet, pianist, speaker of 19 languages, and Inua Kijana Fellow, is the Founder & Lead at GoBigHub, a for profit social enterprise with a 10 year target of being in 1,000 African cities, connecting local entrepreneurs to local investors and contributing to 1% of Africa’s GDP. He is passionate about the role of enterprise in fighting Africa’s challenges of poverty, unemployment, and low productivity. He believes that connecting the entrepreneurs to local sources of capital while providing business mentorship and promoting group business and investment ventures through business clubs and investment clubs is the answer to build better lives in Africa. Read Ojijo's Complete Profile Here.