Email this article to a friend

Chapter 6: Describe Your Company - Page 6.2

Locations and Facilities

Briefly describe offices and locations of your company, the nature and function of each, square footage, lease arrangements, etc.

If you are a service business, you probably don't have manufacturing plants anywhere, but you might have Internet services, office facilities, and telephone systems that are relevant to providing service. It is conceivable that your Internet connection, as one hypothetical case, might be critical to your business.

If you are a retail store, then your location is probably a critical factor, so explain the location, traffic patterns, parking facilities, and possibly customer demographics as they relate to the specific location. Your Market Analysis, discussed in Forecasting: Your Target Market, goes elsewhere in the plan, but if your shopping center location draws a particular kind of customer, note that here.

If you are a manufacturer, then you may have different facilities for production, assembly, and offices. You may also have manufacturing and assembly equipment, packing equipment, shipping docks, and other facilities.

Depending on the nature of your plan, its function and purpose, you may want to include more detail about facilities as appendices attached to your plan. For example, if your business plan is intended to help sell your company to new owners and you feel that part of the value is the facilities and locations, then you should include all the detail you can.

If you are describing a manufacturing business for bankers or investors, or anybody else trying to value your business, make sure you provide a complete list and all necessary details about capital equipment, land, and building facilities. This kind of information can make a major difference to the value of your business. On the other hand, if your business plan is for internal use in a small company with a single office, then this topic might be irrelevant.

 

Copyright © Timothy J. Berry, 2006. All rights reserved.