Definition: A company profile is a description of all the relevant elements of a business. It is a summary that communicates essential information about the entity.
What Does Company Profile Mean?
A company profile is a statement that describes a business essential elements. Most of these profiles are designed as marketing material for different purposes. They normally include things like: name of the company, contact information, location of its main establishments, name of the top executives, products and services offered and prices; sales data, financial data and operational data; along with other relevant business information that might be useful to the intended audience.
This profiles are normally drafted for potential investors, government regulators, key stakeholders or even important potential customers or suppliers. Financial institutions are also a frequent recipient of this information. On the other hand, company profiles can vary in their degree of detail. Companies often publish a brief profile on their websites for potential clients, so they can get a sense of who they are dealing with. This profiles can be much more brief than maybe profiles intended to inform potential investors, since the degree of disclosure required is very different.
Example
Friendly Bags Co. is a company that produces paper bags made of recycled materials. The company has been operating for two years and its sales have grown exponentially since there’s a new trend of environment care going on. The business founders identified the need to expand the company’s production capacity to meet this high level of demand. In order to do so, they need to approach potential investors to gather at least $3,500,000 for the project.
The Marketing and Investor Relations Departments are in charge of developing a company profile that will be presented to these individuals along with all the financial information gathered by the Finance Department. This profile must contain all essential information of the business like sales figures and forecasts, key staff, markets they serve and data about them, products and services offered, among some other information that these investors will require to make their decisions about whether to invest or not.
