CHAPTER ONE: BUSINESS DESCRIPTION
1.1 Business Sponsors
Provide a brief background information about the owner(s) of the business in relation
to name(s), of the owner (s) the education level, skills and experience relevant to the
operation of the business.
1.2 Business Name
Identify a suitable name for your business and give its meaning. The name should be
relevant to the business activity, easy to pronounce, easy to remember, simple, clear, unique,
made of few words and attractive or appealing to the customers.
1.3 Business Location and Address
Describe your business physical address (urban or rural), by giving the name of the
city/town, street/avenue, building, floor and room number. In cases/areas where
these do not exist, identify your business location in relation to significant features in the
area e.g. hospital, petrol station, police station, school, church, etc. provide postal address
for your business, including a telephone number, cell-phone, e-mail address where
possible. Give reasons for the choice of the business location
You may illustrate your business location using a sketch map. (The map should form part of
appendices).
1.4 Form of Business Ownership
Indicate how the business will be owned e.g sole proprietorship, partnership, or
private limited company. Show the advantages of the choice of the form of business
ownership chosen.
1.5 Type of Business
Describe the activities to be carried out in the business e.g services, manufacturing,
retailing, wholesaling etc. Differentiate the activities into major and minor activities.
Describe the status of the business e.g start-up, already existing, etc.
NOTE: All of you to choose start-ups.
Indicate when the business will commence/ start. Give reasons for the date of
commencement. Be realistic on the date.
1.6 Product(s)/Service(s)
Name and describe the product(s) or service(s) to be offered by the business in detail, giving
the physical features of the product (s) such as various types, colours, sizes, quantities, shapes,
etc. Explain the competitive advantages that your products or services will have over those of
your competitors, the Give reasons for the choice of the business location which will justify
why your customers will buy from you but not from them. In case of service (s), describe, the
quality, promptness, reliability, dependability, type of service(s) to be offered etc. Show the
competitive advantage(s) of your service (s).
1.7 Justification of Business Opportunity
Give at least five reasons why you have decided on this particular business
opportunity/idea.
Consider the following; specific needs that your business will satisfy; roles of your business to
the local community; specific qualities, skills, abilities and experiences that you have to enable
you run this business; what the environment have that will enable the business set up
1.8 Industry
Industry is a cluster of businesses producing similar kinds of products/services and
serving similar market segment to solve similar customer needs. Identify the industry your
business falls under. (Remember the Industries are already there). Do not
confuse industry with your proposed business.
Describe the industry in detail in regard to; size (number of registered firms, i.e.
small, medium, large), business trends; technology, capital required, amount of competition,
number of employees, projected future performance of industry etc.
NOTE: Information on all industries in the country is available from Economic
publications, relevant websites, etc –do your research.
1.9 Business Goals
Goals are your aims or your expected outcomes.
State your business goals in the short and long-term. State at least six business
goals (3 in short - term and 3 in long-term). Your business goals must be specific,
measurable, achievable, realistic and time-phased (SMART).
1.10 Entry and Growth Strategy
1.10.1 Entry Strategy
This provides your plans/tactics, formulated to enable you gain entry and acceptance
of your new business into the market.
Show how you will attract and retain customers in your new market area.
1.10.2 Growth Strategy
Growth strategy shows your expansion plans. How do you plan to grow your
business? Outline the opportunities for the growth of your business and the steps to be
taken in expanding your business, showing the time frame within which these plans will be
implemented.
NOTE:
1. Use continuous prose (complete sentences that form full paragraphs) to give a
description about your business. The points raised in this handout (and for the
other chapters) are intended to assist in organizing your thoughts and ideas in a
coherent manner. They are not to be treated as dis-jointed pieces, but one
continuous report, broken into various sub-headings.
2. The businesses are start-ups which are yet to be started, so, we use future tense.
However, in 1.8 which deals with Industry, some use of present tense will be
accepted.
3. Keenly use the guide the way it is, i.e no changing of the format. Copy the number
and name of the chapter(s) and the sub-topics as given. You will realize that as
you respond to what is required, you will be writing the full sentences mentioned
in note no.1.
4. There should be no underlining, bolding /highlighting, no numbering of points
(check note no.1, prose form of writing), no bullets, dashes etc.
5. Your business will have a name. Let the business talk, by using the name! Do not
talk of, ‘my or our business’, but XYZ or the business will be located at. .
