DRAFTING THE PRODUCT/SERVICE SECTION The product/service section is one of the most important parts of your business plan. It's your chance to...

DRAFTING THE PRODUCT/SERVICE SECTION

The product/service section is one of the most important parts of your business plan. It’s your chance to explain clearly your products and services, identify their features and benefits, and discuss what needs or problems (or “fears and passions,” if you watched my YouTube video) they address in the market.

PRODUCT:

If you are selling a product, your reader will want to know what it is, what it does, and its features and benefits. Consider including pictures or a short demonstration video if they would help your reader get a better understanding of your product.

Discuss the product’s:

Size;

Shape;

Color;

Cost;

Design;

Quality;

Capabilities;

Technological life-span; and

Patent protection.

If any sort of government approval (such as approval by the U.S. Food and Drug Administration of a health care product or Underwriters’ Laboratories certification of an electronics product) will be required, describe the nature of such approval and your timetable for getting the necessary approval.

If the product is going to be the first in a line of related products, describe some of the possible other products you would create if this product were to be successful.

You may also want to explain how the product is produced, the materials required, and the type of labor needed.

SERVICE:

If you offer your customers a service, explain what the service is, how it works, and what needs or problems (or “fears and passions,” if you watched my YouTube video) they address in the market.

Discuss the following:

Where will you operate?

Is the service “brick and mortar” or online?

What makes your service different?

What materials or equipment are needed?

What are your days and hours of operation?

Will you need any government licenses or permits to operate this business?

Explain the steps in your service process and the benefits you offer your customers.

PRODUCT OR SERVICE:

Write this section with enough information to satisfy an outsider’s need to understand the product or service without boring them with trivial details (or giving away so much information they can steal or copy your idea).

COMMON MISTAKES TO AVOID:

The following are some of the most common mistakes I find the product/service section:

1. Failing to identify the benefits of the product or service, focusing instead on the features.

2. Describing the product/service in language that is too technical, containing too many industry-specific words or phrases.

3. Assuming an improved product or service will “sell itself”.

4. Describing the product or service in terms that are too broad.

5. Presenting weak plans for the future, leaving your business subject to competition.

6. Underestimating the importance of legally protecting your product or service.

7. Omitting the specific problem the product or service addresses and how it solves that problem.