How to present your company's history in your business plan

Whether you're an experienced business owner trying to raise investment or a developing company wanting to further growth, touching on your company's history in your business plan is a good way to help readers understand your company's culture and the milestones achieved to date.

Our guide contains all the information you need to write an impactful company history section in your business plan in order to make a compelling case for your business.

Ready to dive-in? Let’s get started!

What is the objective of the company history section of your business plan?

Knowing a company's history is helpful to prospective lenders, investors, and partners. First, the company history section helps build a connexion with the reader, enabling them to get acquainted with the founders and the key milestones achieved by your business from its outset up to the present moment.

The company history section also helps build your business plan's credibility by showcasing that you have been in business for a long time, and by demonstrating your business's track record and ability to execute and deliver growth over a sustained period of time.

In particular, the presentation of historical financial data serves as a crucial benchmark against which the forecast included in your business plan can be compared and assessed to judge how realistic and plausible your numbers are.

In an ideal world, you will want to show that what you've set out to accomplish in your business plan is nothing you haven't done before.

What information should I include in the company history section of my business plan?

Consider this section as setting the stage for your business narrative. It's akin to a condensed version of your backstory, tracing the origins of your company and the key individuals involved from its inception.

The details within this section will naturally vary based on your audience and your company's current level of maturity. 

However, there are specific foundational components that should consistently be present in this segment. Let's explore them in more details.

Origin of the idea

At a personal level, lenders and investors are usually keen and proud of supporting entrepreneurs along their journey.

In this context, describing where the business idea came from is essential because it helps readers understand what motivated the founders and how they turned a simple belief into a viable and successful business.

This insight into your journey makes it relatable, and will hopefully inspire them to join you on this adventure by funding your next stage of development.

Founding date and key personalities involved

Unveil the moment your business came into being. This date signifies the birth of your idea, the first step towards turning a vision into reality. This section should also introduce the founders and other pivotal personalities who played instrumental roles during the company's early days. 

These individuals contributed their expertise, determination, and creative insights to mould the early trajectory of your business.

Major turning points

If you're aiming to secure funding, lenders and investors will be interested in your previous successes (or failures).  

In this section of your plan, it's important to give an overview of your business's growth trajectory to date.

Explain your starting point, your growth, and the changes you've experienced along the way that have led you to your current position.

Milestones and achievements

Highlighting significant milestones, awards earned, and key achievements can help demonstrate the progress and growth of your company over time.

This information can instil confidence in potential investors, partners, and stakeholders by showcasing the company's track record of success and its ability to meet goals and hit deadlines.

Market expansions

When talking about the path your business has taken, it's important to emphasise any moves you've made into different markets or geographic locations. 

This is especially relevant if you are raising financing to fund a product or geographic expansion, as it helps demonstrate that it's something you've done successfully before, thereby reducing risk for the financiers backing your expansion.

Historical financials

As we discussed earlier in this guide, where possible, including between three and five years of historical financials will provide financiers with a helpful reference point to which they can compare the financial forecast included in your business plan.

Current trading

It is also customary to include a commentary about your business's current trading.

The purpose of this section is to reassure readers that there haven't been any material changes to your company's financial performance since the last set of accounts were produced. 

What tool should I use to write my business plan?

Nowadays, using online business planning software such as the one we offer at The Business Plan Shop is the most efficient and modern way to create a business plan.

There are several advantages to using specialized software:

• You can easily create your financial forecast by letting the software take care of the financial calculations for you without errors
• You are guided through the writing process by detailed instructions and examples for each part of the plan
• You can access a library of dozens of complete business plan samples and templates for inspiration
• You get a professional business plan, formatted and ready to be sent to your bank or investors
• You can easily track your actual financial performance against your financial forecast
• You can create scenarios to stress test your forecast's main assumptions
• You can easily update your forecast as time goes by to maintain visibility on future cash flows
• You have a friendly support team on standby to assist you when you are stuck

If you're interested in using this type of solution, you can try The Business Plan Shop for free by signing up here.

How long should the company history section of your business plan be? 

Business plans are forward-looking, therefore, the length of the history section shouldn’t be excessive as readers care more about the future than the past.

As a rule of thumb, the history section of your business plan should span two or three pages if you include the right details.

However, it really depends on how intricate and extensive your business journey has been. For instance, if your company has been operating for a decade, the history section will likely be more comprehensive than for a younger company which have been trading for two years.

Example of company history in a business plan 

Below is an example of how the company history section of your business plan might look like:

Key takeaways

We hope our guide helped you get a better understanding of how to write the company history section in your business plan.

The key takeaways are:

• The company history section helps sell your equity story by demonstrating that your business is low risk (you've been in business for a while) and your business plan is credible (your business has a clear track record of delivering growth)
• Lenders and investors are champions of businesses, the company history section helps break the ice and make them want to fund your next chapter of growth
• Using business plan software, such as the one we offer, is the best way to easily write a convincing business plan
• Business plans are forward looking by design, keep your history section short and to the point

Also on The Business Plan Shop

• Example of legal structure of a company in a business plan
• Example of presentation of the location in business plan
• Management team in business plan
• Business plan steps: everything you need to know
• 7 tips for writing an effective business plan
• Tips to present business plan milestones
• How to write the risks and mitigants section of your business plan?
• Business plan and pitch deck: how do they differ?

Do you know someone in the process of writing their business plan? Share this guide with them!