This part of the business plan will provide a detailed description of the products and/or services you plan to sell. It is important to be clear and concise when you are describing your product and/or service.
You should not assume that the reader is familiar with your product/or service so be sure to explain and describe it carefully and concisely.
Prior to addressing in detail the business plans regarding such areas as marketing and operations, it is useful (and necessary) to devote attention to the business products and services.
Such attention is merited on the assumption that, regardless of strategic considerations, a business cannot succeed without an appealing set of products and/or services.
Because the entrepreneur is likely to be far more familiar than the reader with his or her chosen field, it is important that the characteristics and the appeal of products and services be communicated in a clear and simple fashion.
Now is the time to sell your product or service. Present your information in a factual, but be exciting fashion.
Remember that when your readers have finished reading your comprehensive and fantastic product or service description, they should be more open to go onto the rest of your plan.
The following information is generally included in this section.
– Physical description: In the case of a product, a description of physical characteristics is usually appropriate. It is often helpful to include a photograph, drawing or brochure (Keep it as an appendix item and refer to it from this page). In the case of a service, a diagram sometimes helps to convey what is being provided by the business.
– Uses: Having described the product or service, the entrepreneur should comment on the nature of it’s various uses and what the appeal is. This is a great opportunity to emphasize the unique features of the product or service and establish the potential of the venture.
In some cases, appeal may be based on tangible, functional benefits. For example, a certain product might help improve looks, improve time efficiency or save you money.
– Stages of development: It is important to focus on the stage of development of the product or service, including how the company’s offerings – both product and services – have evolved to their present state and how they are going to evolve in the future.
– Competitive comparison: How is your product competitive with other similar products? Will save time? Is there a competitive advantage in production?
– Sales literature/Sourcing/Technology: Include any pertinent information that directly relates to the description of the product or service.
The objective of this part of the business plan is to convey as concisely as possible the nature of the business offerings. It is important to note that when you are describing your product that you concentrate on the benefits to your user.
It is in the marketing section of the plan that you will relate the products and/or service into the market, strategies, and opportunities. Remember, you want to describe the benefits of the product. Benefits always sell much better than features.
You should always provide good, practical information on the products and services you sell. Give your readers what they will need to evaluate the plan.
Make sure they know exactly what you are trying to sell, the need you are filling, how well you are filling that need and why your customers will buy from you and not someone else’s product/service.
Alright, now that you have an idea of how to structure your product and/or services description, let’s see how you’ll start fitting your product or service with the rest of the plan.
But first, let’s see an example of a product and services description using our fictional company: Terra Engineering .