Now that you have your Business Plan Company Description completed, it time to start on the Business Plan Product and Services section.
Business Plan Product and Services – First Steps
In this section, you will describe the offerings you will make to your customers. In addition to the sections listed below, there are two important things to remember. First, highly technical or detailed terms and descriptions are not needed. Second, make sure your readers can understand the your offerings without using buzzwords and industry-specific terms.
There are six key topics in the Product and Services section:
- Details of products or services
- Market position
- Unique selling proposition
- Pricing strategy
- Anticipated customer demand
- Growth potential
Details Necessary for the Business Plan Products and Services
First, answer the question “are your products and services in development or existing”? If the products are existing, are they on the market? List each product or service that your business will offer. In our Ben’s Veggie Burger example, it could look something like this:
- Ben’s Veggie Special [$4.99] – the perfect meatless yet protein packed veggie burger
- Ben’s Caramelized Onion-Veggie Burger [$5.99] – our veggie burger with lentils, red onions, mushrooms, and a touch of breadcrumbs.
You will need to list all of your offerings in Product and Services section.
This topic will detail where your Products and Services fit in the market. You will need to touch on whether they are a high-end or a low cost alternative to the products offered by your competitors.
Unique selling proposition
Describe how your product or service will succeed in the market. Note the difference between your product and your competitors that will highlight why your business will succeed where others may have failed.
This ties a bit to the products and services section details. Describe how your product or service will be priced. Are you a low price entry into the market or more of a boutique/specialty offering that is high-priced.
Anticipated customer demand
Illustrate the number of customers and sales by month for 6-, 12- and 18-month periods. Show not only the number of customers but the number of sales by product.
Chart your growth potential and explain what factors will drive that growth. Do you have a location that is in a high-growth, high-traffic area? Are you able to expand your product line easily and cost effectively?
Each of these topics are key to building out your business plan and helping your readers to understand the potential for success. The Products and Services Section is your opportunity to convey why you have the “right stuff” to succeed in a competitive market.
Next step: Write out your business plan products and services description today. Show it to friends and family to get their views on the products or services and the pricing. Ask them the question, “Would you buy this?”.
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