Why You Need a Products and Services Section in a Business Plan
The business plan products and services section is the centerpiece of your plan. While other sections of your 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 is built.
What to Include in a Products and Services Section
The products and services section of your business plan outlines your product or service, why it’s needed by your market, and how it will compete with other businesses selling the same or similar products and services. Your products and services section should include a description of the products or services you are offering or plan to offer (including future products or services). You should explain how your products and services will be priced and a comparison of the products or services your competitors offer in relation to yours. The products and services section will include a paragraph or so on how orders from your customers will be processed or fulfilled, as well as any needs you have to create or deliver your products, such as up-to-date computer equipment. If your process depends on intellectual property or legal issues, such as trademarks, then those need to be addressed.
Tips on Writing the Products and Services Section
This section of your business plan should excite those you’re hoping will fund your business or work with you. To that end, here are a few tips to create a products and services section that appeals to the reader.
Indicate Why Your Product or Service Is Needed
Especially if you’re venturing into a new concept or invention, or a place where there is no current market, you need to explain the need for your product or service.
Highlight the Features of Your Product or Service
A crucial part of business success is the ability to set yourself apart from other businesses that sell the same or similar products and services. What features, such as price point or level of service, do you offer that are unique to you?
Focus on Benefits
Unique features are important, but even more vital is how those features provide value to consumers. Translate your features (i.e., faster or cheaper) into benefits (i.e., get it now or save money). The goal is to highlight how your product or service will fix a problem or improve a client or customer’s life.
Be Clear and Concise
Don’t let your business plan get bogged down in too much description and information. Use bullets or numbered lists to quickly and easily highlight important information.
Show Off Expertise, Experience, and Accolades
You not only want to describe your products and services but also share why you’re the best person to provide them. Include anything in your education or experience that makes you an expert in this business. If you have testimonials, awards, or endorsements, share those. Finally, if you’ve applied for a patent, copyright, or trademark, include that as well.
Be the Expert, But Use Layman’s Terms
You should know your product, service, and industry well, but don’t expect your potential funders and partners to have the same level of knowledge. Assume the reader doesn’t know as much as you when you explain what you’re offering.
Indicate What’s Special About Your Products or Services
Will you be offering a special guarantee or refund policy? Do you have a quicker or more unique way of delivering your product or service?
Speak to Your Customer
While you don’t want to write an advertorial, you do want to be customer-oriented when you write your products and services section.
Examples of a Products and Services Section
The Small Business Administration offers business plan examples that you can draw from to help guide your writing. Here’s an example of a products section for someone creating “Wooden Grain Toys.” Wooden Grain Toys will sell wooden toys made from solid hardwoods (maple, beech, birch, cherry, and oak) and steel rivets. The toys are handcrafted and designed for small children to easily use. Our line currently includes the following nine models:
All-Purpose Pick-Up Truck w/movable doors and tailgateDump Truck w/functioning dumping mechanism and boxBiplane (two-seater) w/movable propellerSteam engine with coal tender - additional cars available separately: caboose, flat car w/logs, box car, tank car, coal carCity BusTow TruckFlat-Bed Truck w/logsSports CarSedan
Wooden Grain Toys will offer its products for the following prices:
All-Purpose Pick-Up Truck w/movable doors and tailgate - $25Dump Truck w/functioning dumping mechanism and box - $30Biplane (two-seater) w/movable propeller - $20Additional train cars (single car) - $5Additional train cars (three cars) - $12City Bus - $12Tow Truck - $18Flat-Bed Truck w/logs - $35Sports Car - $20Sedan - $20
