Unformatted text preview: age.
Several manufacturers used proprietary compression to enhance video and photographic software,
looking for a competitive edge.
The competitive edge might be different for any given company, even between one company and
another in the same industry. You do not have to have a competitive edge to run a successful
business — hard work, integrity, and customer satisfaction can substitute for it, to name just a few
examples — but an edge will certainly give you a head start if you need to bring in new investment.
Maybe it’s just your customer base, as is the case with Hewlett-Packard’s traditional relationship with
engineers and technicians. Maybe it is the quality control and consistency of IBM.
The most understandable competitive edges are those based on proprietary technology. A patent, an
algorithm, even deeply entrenched know-how, can be solid competitive edges. In services, however,
the edge can be as simple as having the phone number 1 (800) SOFTWARE, which is an actual case. A
successful company was built around that phone number. Baseline Numbers For Ongoing Companies
While we’re focusing on the company description, let’s establish some starting numbers that form
the basis of your cash ﬂow and balance sheet in the following sections. For ongoing companies, your
starting balance for the future is the last balance from the past. Past Performance for Ongoing Companies
Past performance explained here is for ongoing companies. If you are a start-up business, skip to the
next section, Baseline Numbers for Start-up Companies.
Ongoing companies need to include a summary of company history, as a topic in your text. If you
are an ongoing company, then you’ll need to present ﬁnancial results of the recent past, and this text
section is where you explain them.
Explain why your sales and proﬁts have changed. If you’ve had important events like particularly bad
years or good years, or new services, new locations, new partners, etc., then include that background
here. Cover the founding of the company, important events, and important changes.
Your ﬁrst considera...
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