Business Plan Tools & Guidelines

Business Plan: Product or Service

Business Plan Product or ServiceThis section of the business plan will describe in a non-technical manner the characteristics of your products or services, stressing upon their competitive qualities.

This section describes what your product or service consists of. It should contain detailed descriptions of products and/or services.

Make the presentation explicative, as if addressing a reader who is not familiar with the offered products/services.

Product description: should cover size, shape, color, design, capabilities. Representative pictures might be helpful in retaining the reader’s attention. Also add a brief description of the production technology (needed materials, type of labor) and some things on patent protection.

Services: explain the services — what they are, what needs they address, the operations area, needed materials or equipment, operations program(scheduling — days, hours), steps in the service process, benefits for clients.

competitive comparison of your products should be performed here, showing your key advantages towards your competition.

For both producers and services providers, the sourcing analysis should be represented here. It shows that you have considered and analyzed the necessary means to fulfill your objectives, that is the products/services you offer. Elements to be analyzed: standard costs, materials, manufacturing operations (purchased services if required) from the strengths and weaknesses perspective.

presentation of the technology you use in order to produce/maintain/develop your products/services will speak about your ability to put to good use facilicities offered by modern science and about your openness to new.

You may also want to present future products or services future planning. It implies describing a product strategy, how you see the relationship between market needs and product development. This topic would mostly appeal to possible investors, who look for the business’ perspective than to bankers who would not be interested in ideas of future products but in more concrete things.

The business plan writer should treat this subject from the perspective of the customer’s needs and the potential of your product of benefit offers. This chapter is decisive for the wholistic impression of the reader — whether the business/company has anything interesting to offer, something that will sell, something that will retain attention and seem attractive.

The section must be informative enough, offering an easily understandable image without boring details. Emphasis should be placed on the difference your products or services make on the market.