Company Description

Aug 14, 2024

A company descriptions is a simple yet effective way to introduce your business to other people. A successful and fruitful business partnership or relationship always starts with getting to know the other party well first.  

Company Description Definition & Meaning

A company description is a short and concise document that contains information about key aspects of a business, company, or organization. 

A company description offers a detailed overview about a company’s vision, mission, plans and other relevant information. 

What Is a Company Description?

Submitting a company description is a standard way of informing and educating people on what your company is about. The document usually contains relevant information about a company’s mission, business plans, relationships, and business structure. In many ways, a company description can be viewed as really just a summary of a company’s profile.

5 Types of Company Description

Trading Company Description

Trading companies engage in the business of exporting and importing goods. Whether your business is domestic or international trade, a trading company description is a helpful communication tool that allows others to get to know your company. The document does not need to be a long; similar to a company profile, your company description should be brief, concise, and informative.

Ecommerce Company Description

The ecommerce industry today is robust as ever and shows no signs of slowing down. With the many business documents needed for companies to establish legitimacy, a company description is a fairly simple and practical document. The ecommerce company description template is editable and downloadable so you don’t need to start from scratch!

Small Company Description

Micro enterprises and small businesses are important for a competitive and fair economy. But for startups and small enterprises to flourish, they need exposure and support. A small company description serves as a straightforward fact sheet to help up-and-coming businesses establish themselves in the market.

Construction Company Description

The construction industry is quite competitive and the more clients and projects you have usually translates to more business and profit. But if you want to make the right impression on prospective clients and partners, you need to prepare a professional construction company description. In your document, make sure to include a section that describes your different services as well.

Generic Company Description

A company description is necessary if you have to make a formal introduction to potential business partners, vendors, or clients. Your description should be able to capture the essence of your company in a few, short paragraphs or sections. The generic company description below can easily be tweaked or modified to suit individual needs and objectives.

Company Description Uses, Purpose, and Importance

Like most business documents, a company description can serve different purposes depending on the specific needs of a company. The following reasons explain and describe several of these important purposes. 

Inform and Educate Stakeholders

A company description is essentially an information tool and in this case, the popular saying “Knowledge is power” duly applies. Stakeholders- whether they are prospective clients or independent contractors- would surely want to know what kind of company they are dealing with. A company description can be useful even for just the general public who may simply be curious as to what your business is all about.  

Attract Investors

Many companies and organizations rely on outside investors to fund their projects and initiatives. And if you are an up-and-coming business looking for financial support, a company description is necessary as an introduction to potential investors. It is helpful to remember that the contents of your company description should be strategically tailored to suit the objective of attracting investors. 

Recruit Potential Business Partners

Aside from educating investors and customers, a well-written company description may even be used to attract potential business partners. Whether they are vendors or clients, if your company description is impressive and matches the needs of the other party, then it is possible for a business relationship to flourish. Thus, it is crucial to describe your objectives, goals, and business plans in the document. 

Help People Understand the Company’s Functions

A company description can be modified to suit individual objectives and needs. There may be a standard format on how to write one, but you can always tweak it to serve a specific purpose. The underlying goal, however, is to make people aware and to help others understand the functions of your company- whether that be through a vision statement, mission statements, or a list of services.

Introduce Company Leadership and Management

Although it is not always necessary, you can also introduce the key people or positions in your organization. You can dedicate a brief section in your company description about the person (or persons) in charge of running operations. Some investors and clients might want to know who comprises the management or decision-making team of a certain company.

What’s in a Company Description? Parts?

Company Name

Company Name-The header of your document should contain the company name. You can type the name in bold font and large text so it is more clear; and you can even include an official business logo if you prefer.   

Contact Details

Below the company name, provide your basic contact details. The complete business address, contact numbers, and email address should be included.

Business Structure

The business structure can help other people understand what type of business you are running. Sole proprietorship, partnership, corporation, limited liability company (LLC), and cooperative are some of the common types of business structures

About Us

Your company description should contain a short and concise overview of your business. As much as possible, try to keep the About Us section to no more than two paragraphs.  

Mission Statement

A mission statement is an important statement that serves as a compass for organizations and companies. For readers, it gives them an insight into what a company seeks to achieve or accomplish.

List of Services

A list of services or products is useful information for potential clients and customers. The description for each service does not have to be long; it is recommended to stick to short, concise, and descriptive statements.

Target Market

Establishing a target market is key if you want to implement a successful business strategy. Identifying your target market also helps readers get a better picture of the kind of customers your company caters to.

Objectives

It is helpful to list your specific objectives or goals in your company description. You can enumerate them numerically so it is easier to comprehend; and make sure to keep them short, specific, and straightforward.

How to Design a Company Description?

1. Choose a company description size

2. Determine the objective of the company description

3. Select a suitable company description templates

4. Edit the company name and contact information

5. Include a brief overview of the company

6. Identify the business structure, target market, and objectives

Company Description vs. Executive Summary

A company description is a general overview of the basic facets of a company such as its business structure, target market, goals, and objectives. 

An executive summary is a single-paragraph condensed account of a longer written work such as a business plan or a research paper. 

What’s the Difference Between a Company Description, Business Plan, and Profile?

A company description is a formal written document that summarizes key information about a company’s objectives, mission, services, business structure, etc. 

A business plan is a comprehensive plan that details a company’s goals as well as the timeline and methodology on how to achieve these goals. 

A profile is a detailed account or description of a company, individual, or project. 

Company Description Sizes

Company description documents have a standard size across all industries. Using the right company description size is crucial for formatting and printing purposes.

Company Description Ideas and Examples

As illustrated by the various company description ideas listed below, different types of companies offer different products and services. So it only makes sense to curate and customize your company description based on the kind of company you operate.

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Company Description FAQs