Is a sentence in a business plan that describes the purpose of the business?

If you dig deeper into the problems and setbacks that entrepreneurs encounter (missed revenue targets, non-converting sales pages, failed product launches, etc.), a lot of it can be attributed to a lack of clarity.

But even if you’re clear about basic things such as what you sell and who you sell it to, it isn’t enough to know this on your own. You should be able to clearly and easily describe your business to others as well.

This is where your one-sentence business statement comes in handy.

Your one-sentence business statement is a clear and concise description of what your business does, who you do it for, why you do it, and what sets you apart from your competition.

Here are 10 different ways this can be useful for you:

  1. You can add this to your business plan.

  2. You can use this as an elevator pitch.

  3. You can share this when networking.

  4. You can highlight this on your website homepage.

  5. You can include this in your bio for guest blogging.

  6. You can turn this into your podcast or Youtube introduction.

  7. You can add this to your email signature.

  8. You can highlight this in the bio sections of your social media accounts.

  9. You can incorporate this in your media kit or pricing guide.

  10. You can even add this to your brand collateral.

Pro tip: It helps to also practice saying this statement out loud so you have a response to the dreaded question, “So, what do you do?”

What’s even more powerful about it is that aside from using it for marketing and communications, it can also serve as your business’ compass—it can help you and your team stay focused on what you should be doing and steer clear of what doesn’t serve your business purpose.

All of your tasks, strategies, and systems should be in line with it. It can be a factor when hiring people to join your team. It can help you decide what products or services to add or remove. It can even help you when you scale your business.

Remember, crafting your own one-sentence business statement doesn’t have to be intimidating. It’s just a matter of answering five key questions:

  1. What’s your business name?

  2. What do you sell?

  3. Who do you sell it to?

  4. What problem do you help them solve or what goal do you help them achieve?

  5. What makes you different?


Is a sentence in a business plan that describes the purpose of the business?
Is a sentence in a business plan that describes the purpose of the business?

Want to follow along with a FREE PDF workbook?

Click the button below to sign up and download the free worksheet.

Click Here to Download


1. What’s your business name?

First, simply state your business name.



2. What do you sell?

Second, highlight what exactly it is that you sell, provide, offer, create, or do as a business. Be as specific and concise as possible, and don’t use words your target clients or customers won’t recognize.



3. Who do you sell it to?

Third, identify the type of client or customer you’re targeting. Remember the saying, “a business that targets everyone appeals to no one?” Now’s the time to answer the questions: What niche are you in? Who is your ideal client or customer? You must have created your product or service specifically for them so make sure there’s no confusion when you mention them here.



4. What problem do you help them solve or what goal do you help them achieve?

Fourth, declare the promise you’re making to your target client or customer through your product or service. What’s in it for them? What problem of theirs do you help solve? What goal do you help them achieve? What kind of benefit or transformation can they expect from their purchase?



5. What makes you different?

Lastly, pinpoint what sets you apart from other businesses. This is a big one because not everyone will go the extra mile and present the unique value that they bring to the table. But in order to stay ahead of the competition, you’ll definitely want to prepare your answers to questions such as:

“What do you offer that others don’t?”

“Why should I hire you or buy from you and not from someone else?”

“Why should I hire you or buy from you if I can just do it myself?”

“Why should I hire you or buy from you if I can just research online for free?”

A helpful tip for answering question #5 is to identify your unique value proposition.

A unique value proposition (UVP) or unique selling proposition (USP) describes the distinct benefit of your product or service and what distinguishes you from the competition.

Even if there are thousands of coaches, consultants, designers, or freelancers out there, your UVP will help you stand out and stay top of mind.

In the case of Productive and Free, we provide strategic time-saving templates that help busy entrepreneurs be productive and free as they grow their dream businesses.

Our UVP is the fact that we provide time-saving templates that are created with strategy and conversion in mind.

Each and every template we have is well thought out with the client or customer in mind and we incorporate proven marketing strategies we’ve researched, developed, and tested ourselves.

Some of the other template shops don’t even have lead magnets to offer, haven’t sold their own services, are not coaches themselves, haven’t sold their own courses or eBooks, haven’t hosted a challenge, don’t post on social media, or don’t have their own website.

We do, and we have.

We’ve even developed our own 3-template system called Client Experience Templates™ to help coaches and service-providers provide an amazing client experience.

In the end, we deeply care about our customers so our goal is to help them save time, energy, and money.

We even say, “Our goal in helping you be productive isn’t so you can simply do more work, but so that you can be free to do more of the things you love.”

Here’s another example.

Let’s say you offer wedding photography services and your one-sentence business statement is:

My Photography Business, LLC provides photography services to wedding couples so that they can remember their special day forever.

At first, this business statement seems complete.

It has your business name, what you sell, who you sell it to, and what outcome you help them with.

But keep in mind that there are a lot of other wedding photographers out there.

There are so many in fact, that you can probably replace your business name with someone else’s, and no one would know the difference!

What you can do is include your UVP and revise it to:

My Photography Business, LLC provides one-day edit photography services to wedding couples so that they remember their special day forever.

Or

My Photography Business, LLC provides hassle-free videography and photography services to wedding couples so that they remember their special day forever.

Suddenly, your business is more appealing to your target client or customer and you have a better chance of standing out from the crowd!

Here are other ways to include your UVP in your one-sentence business statement:

  • Mention what people don’t need to do or worry about

    • “Without ______”

      • Without hassle

      • Without wasting more time

      • Without paying for ads

  • Mention the unique features or benefits of your product/service

    • “Through ______”

      • Through an 8-week intensive program

      • Through a streamlined client system

      • Through our VIP membership

  • Mention the unique method or system you use

    • “By ______”

      • By attracting more of the right clients

      • By automating 80% your processes

      • By using only free tools

Putting it all together

Once you have your answers to all five questions, you can then use them to fill out this simple one-sentence business statement template:

[Your business name]

provides / offers / sells / creates

[Your product and/or service]

to / for

[Your target clients or customers]

so that they can

[Solve a problem or reach a goal].

*Don’t forget to insert your unique value proposition wherever you see fit!

Examples

Here are some (fictional) examples.

Fine Designs LLC sells high-converting lead magnet templates to online business owners so that they can attract more email subscribers and turn them into paying customers.

Cara’s Coaching Company provides 1-on-1 coaching services and 90-day meal and fitness plans to busy entrepreneurs so that they can develop healthy habits that finally stick.

Right Writing LLC offers 3-day sales page writing services to online course creators so that they can launch quickly and reach their revenue goals.

Lovely Calligraphy Collective creates gold-foiled hand lettered invitations for trendy event hosts so that they can host memorable parties and functions.

Val’s VA Company provides comprehensive social media management services to brick-and-mortar businesses so that they can grow their online presence without paying for ads.

Over to you

Take this opportunity to craft your own one-sentence business statement (in case you haven’t yet) by downloading this FREE PDF workbook.

What part of a business plan describe the purpose of a business?

Executive Summary. Within the overall outline of the business plan, the executive summary will follow the title page. The summary should tell the reader what you want.

What is a business plan and what's its purpose?

A business plan is a document that defines in detail a company's objectives and how it plans to achieve its goals. A business plan lays out a written road map for the firm from marketing, financial, and operational standpoints. Both startups and established companies use business plans.

Which section of the business plan describes the purpose of the proposed business its reason for existence?

The correct option is (d) Mission statement.

What are the 3 main purpose of a business plan?

The 3 most important purposes of a business plan are 1) to create an effective strategy for growth, 2) to determine your future financial needs, and 3) to attract investors (including angel investors and VC funding) and lenders.