How Does a Business Portfolio Work?

Understanding the Busines Portfolio

A business portfolio is a description of the type and extent of services a business is able to provide to prospective clients accompanied by a collection or summary of work that the business has completed. A business portfolio is an advertising tool which companies use to pitch services to gain more work. A portfolio may take any of several forms--it could be a static page on a website, which displays the company for anyone to see, or it could be an actual physical report, or file containing examples of work that can be delivered to prospective clients. In a sense, a portfolio is a resume for a business.

Business Portfolio Components

The information that goes into a portfolio will vary greatly depending the type of business being conducted. Mostly all portfolios will outline the services the company is able to perform, and information regarding the size of the business's operations. A record of services rendered, focusing on recent successes is common. Figures displaying company performance over time can be included, as well as information comparing the company favorably against a close competitor. If the business involves producing a product, examples of product produced in the past are usually included with photographs or pictures.

Importance of Portfolios for Small Businesses

It may seem that a great business portfolio is something needed only by large companies attempting to attract deals involving millions of dollars, however, oftentimes a portfolio is more important for small businesses than large ones. The reason for this is that large companies have an established reputation, and the extent of their services and dealings are sometimes common knowledge. For example, the Mayo Clinic has a reputation as being one of the world's best hospitals, so many people fly there for medical work based on its prevailing reputation rather than any business portfolio or pitch. On the other hand, small businesses usually have little or no reputation to bring in business; they rely on their portfolios to impress prospective clients. Portfolios are especially important for contractors and artists, in order to display the range and quality of their work.

Resources

• eHow article "How to Make a Business Portfolio"