Chapter no 5 of BPP By Aamir MugheriPresentation Transcript
Chapter no: 05
Product / Service Description Why its important? What it includes? Tips for Writing the Products or Services Section.
The Products and Services section of the business plan describes what products and services are offered, how and where they are purchased and any plans for future goods or product lines.
This section of the business plan is your opportunity to completely hash out your product idea, down to the finest detail, which gives you a complete understanding of your product. The information you learn from this section will help you improve your product and differentiate from competitors. By writing a cohesive Product Description that explains the details of the product, the need for it, and how it has advantages of its competitors, you are making a strong case for why your product will succeed and be profitable. Without this information, investors have no way of knowing if you completely understand your product, or how you plan to compete with others, which makes for a very risky investment.
When writing the products and services section, be sure to include the following: The uniqueness of the product or service The method in which the items are sold Benefits to the customer Why customers will purchase it from your business Vendor details, noting any exclusive dealerships Pricing policy or strategy How does your products differ from the competition
Focus on the Customer Get to the Point Keep It Simple Show Your Uniqueness Include the Fine Print
The purpose of the products or services section of your business plan is to clearly express the benefits youre providing to your customers or clients. All of the background you provide should focus on that goal. Think in terms of answering, "Why does my ideal client want this? How will my product or service make his/her life better, easier or more profitable?"
What is the primary function of your products or services? Outline the need you are fulfilling, the problem you are solving and the overall purpose of the product or service.
Youre the expert in the industry, so you may overlook some fundamental elements when describing your products and services because its so common to you. However, the basics may not be as clear to those reading your business plan. Assume the reader has little to no understanding of your industry and product or service.
While describing similar products and services that are already in existence, take some time in your description to express how your product or service is different, better and unique.
While the bulk of your products or services section should focus on the end result product or service, you should also include information about your pricing and how you arrived at that price point. And be sure to include details about how the product will be sold (i.e. retail, online, etc.).