Introduction
The products and services section of the business plan is more than just a list of what your company will offer. This section should include details about how you will price your products and services, how orders will be fulfilled, and other specifics that investors need to hear before they can fund you. Learn more below.
Why do you need a products and services section in your business plan?
The products and services section of the business plan is the core of your plan. While other sections of the business plan are important, the products and services section is the essence of your business and the point around which every other part of the business plan revolves.
What to include in the products and services section?
The products and services section of the business plan should include a description of the products or services you offer or plan to offer (including future products or services). You should explain how your products and services will be priced and how they compare to the products or services offered by your competitors.
You should also include the marketing evidence you plan to use. Identify your marketing materials and clarify the role of your website in your sales efforts.
The products and services section will include a paragraph or so about how you will handle or fulfill customer orders, along with any needs you have to create or deliver your products, such as updated computer equipment. If your process relies on intellectual property or legal issues, such as trademarks, you should touch on that as well.
Tips for writing the products and services section
This section of the business plan should excite those who you hope will fund your business or work with you. In this regard, here are some tips for creating a products and services section that engages the reader.
Indicate the need for your product or service, especially if you are venturing into a new concept or invention, or in a place where there is currently no market.
Highlight the features of your product or service. A critical part of business success is the ability to differentiate yourself from other companies selling the same or similar products and services. What features do you offer that are unique to you?
Focus on the benefits. Unique features are important, but what’s much more important is how these features provide value to consumers. Translate your features (such as speed or cost) into benefits (such as getting it now or saving money). The goal is to emphasize how your product or service fixes a problem or improves the customer’s or client’s life.
Be clear and concise. Don’t let your business plan get bogged down in excessive detail and information. Use bullet points or numbered lists to quickly and easily highlight important information.
Showcase experience, expertise, and accolades. Not only do you want to describe your products and services, but you also want to share why you are the best person to provide them. Include anything in your education or experience that makes you an expert in the field. If you have credentials, awards, or endorsements, share them. Finally, if you have applied for patents, copyrights, or trademarks, include that as well.
Be the expert, but use simple terms. You should know your product, service, and industry well, but don’t expect investors and potential partners to have the same level of knowledge. Assume the reader doesn’t know as much as you do when explaining what you offer.
Identify what sets your products or services apart. Will you offer a special guarantee or refund policy? Do you have a quicker or more unique way of delivering your product or service?
Talk to your customers. While you don’t want to write an advertisement, you do want to be customer-focused when writing your products and services section.
Examples
On the Products and Services Section
The Small Business Administration provides examples of business plans that you can use to guide your writing. Below is an example of a products and services section for someone creating “Wooden Toys.”
You will sell wooden toys made from hardwoods (maple, beech, birch, cherry, and oak) and steel nails. The toys are handcrafted and designed for small children to use easily. Our current collection includes the following nine models:
– A versatile pickup truck with doors and a movable tailgate
– A dump truck with a dumping mechanism and box
– A two-seat airplane with a movable propeller
– A steam engine with a coal car – additional train cars can be obtained separately: end car, flat car with logs, box car, tank car, coal car
– A city bus
– A tow truck
– A flatbed truck with logs
– A sports car
– A sedan
Wooden Toys will offer its products at the following prices:
– Versatile pickup truck with doors and a movable tailgate – $25
– Dump truck with a dumping mechanism and box – $30
– Two-seat airplane with a movable propeller – $20
– Additional train cars (one car) – $5
– Additional train cars (three cars) – $12
– City bus – $12
– Tow truck – $18
– Flatbed truck with logs – $35
– Sports car – $20
– Sedan – $20
What is the Product and Service in a Business Plan?
The products and services section of the business plan outlines exactly what your company will produce, how much you will sell it for, and other details in this regard.
What are Examples of Products and Services?
A product or service can be anything that a business does to make a profit. Some businesses have both products and services. For example, a restaurant’s services include cooking and catering for customers. The dishes and beverages served by the restaurant are its products.
Source: https://www.thebalancemoney.com/business-plan-format-1794224
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