Products or services section of a business plan describe what the entity is selling to make money. Value that the products or services provide to the customers or clients is also included in this section of business plan.
In business plan, this section is included after the market analysis section.
In this post, we will tell you how effectively you can write the products or services section of your business plan.
Before writing this section of business plan, you should list down all the elements related to what you are selling to customers and how it helps the market.
Product or services section of your business plan answers following questions;
- What are the products or services you offer?
- Are the products in the development phase or existing?
- Why is it needed by market?
- How your product or services will be priced?
- How are these products or services different in comparison to your competitors?
- Is the price of the product an issue?
- What is the cost of the product and does it allow a reasonable profit margin?
- Further product or services you can offer? What is the timeline to bring new products and services to market?
How to write product or services section of a business plan
You can write product or services section of a business plan in difference paragraphs explaining the important points. Answer to above questions will help you what to include under this section.
Brief description of product or services
To start this paragraph, you need to describe your product or services to tell your readers what you are selling to make money and how it fits in the marketplace.
You can start with the purpose of the product or services, how it benefits your customers or clients and why it’s needed by customers. Explain how the product makes their lives better and easier.
The main purpose would be to let the readers know how your product or service will help in fixing problems of your customers.
To compare with your competitor’s product, you need to provide certain information about it and try to explain how your product is unique and different in comparison to others.
Explain the demand of the market and how your product will excel in the market.
If your business is selling a product or service which is similar to existing product or services, then try to explain how big the market is and how the demand in the marketplace can take care of your product or services.
You need to include new products that you are planning to launch and its time limit.
We have already explained the pricing strategy in the marketing and sales plan section. In this section, you need to describe the product and services with a breakdown of how much they cost, size, quantities and varieties that impact the price.
How product or services reaches customer
You need to explain the process your business follows to deliver the product after a customer purchases it. In case of service, you need to explain how you are providing your services to the client, does your business require a client site visit to deliver the service, if yes then how much cost you incur to deliver it.
What technology you use in order to manufacture the product or to render service. How are you going to improve your technology to improve product features?
While writing above matters, you should be very clear and concise. Do not include unnecessary information into it. You can use bullets or numbers list to highlight key features of the product.
If you are starting a new business and want to raise funds for your entity, then include anything in your education or experience that makes you an expert in this business.
To know how you are protecting your product or services, you should include franchise rights, patent, copyright and trademark details in this section.