Business is an economic activity that involves the exchange, purchase, sale or creation of goods and services with the goal of profit and customer satisfaction. Businesses are the backbone of any economy and can range from for-profit entities that seek to make money to non-profit organisations that aim to help a social cause. They can also be organised as limited liability firms, corporations, partnerships or sole proprietorships and operate as tiny operations within a single industry or massive enterprises that span a wide range of industries globally.

The most common business types are merchandising, manufacturing and service. Manufacturing businesses produce physical products like steel or plastic while merchandising businesses sell intangible goods that cannot be physically stored, such as a service provided by a salon or a consultant. Hybrid businesses often combine the characteristics of two or more of these categories. For instance, a restaurant might develop its own dishes (manufacturing) but buy cold drinks from wholesalers and retail them (merchandising).

In addition to producing tangible goods and intangible services, businesses can also be involved in research and development. They can also act as a catalyst for economic growth and innovation by providing job opportunities, encouraging competition and investing capital in new technologies. By generating profits, businesses create wealth for investors and shareholders. They can reinvest this wealth in their operations, expanding them and driving further economic growth.

Whether you’re an established business owner or are just starting out, it’s essential to have a strong understanding of what makes a successful business. A business description is the first thing potential investors or lenders will see, so it’s important to create one that piques their interest and encourages them to dig into your full business plan.

While writing your business plan, it’s important to avoid jargon and use clear, concise language. It’s also a good idea to include examples and data in your document so that it’s easier for readers to understand.

A business plan is an outline of your company’s future goals and how you intend to achieve them. It includes a summary of your business, an explanation of your company’s product or service, and your plans for growth and expansion. You can choose from various formats for your business plan, including a lean template or a traditional one.

A traditional business plan contains a lot of information, including partnership details, an overview of your company’s product or service, market research, and sales projections. However, a lean template is shorter and more focused on the key aspects of your business.