Product and Services In Business Plan:
A section in your business plan is known as the products and services section. This section, despite its name, is more than listing your company’s products or the services it renders to people. This is significant when raising funds from potential investors and looking for partners using your business plan. The product and service section shows the value, quality, and benefits your company offers.
You would agree with me that many business owners put more time, energy, and effort into enhancing and promoting their company and business value. They do this by developing business growth plans and setting well-defined goals. These plans, however, might be difficult to achieve without the knowledge of how or where to begin. Many of these business owners have a biased or uninformed perspective on the value of their business. This is why business valuation is important and will serve as a reality check on their company.
Different business valuation methods are performed for different reasons that would also help business owners in managing their business. The valuation methods used in business valuation and analysis consider certain unique factors which also include business products and services. These considerations have a strong influence on value as well as goodwill and other intangible assets. On the other hand, having a well-detailed product and service section when writing a business plan is very crucial for better customer evaluation or business plan valuation. The product and service section of a business plan is considered the heart of the business plan
A well-written description of products and services draws users’ attention and helps them connect with your business better. It helps in right decision making or when choosing or purchasing a product or service.
Writing a clear description of your products and services and providing some of their basic benefits such as safety, affordability, and ease of use may provide a competitive advantage to your business. These benefits are the main reason customers buy your products or services.
Customers make purchases to either solve a problem or to meet a need and hence they’ll wish to know what your products and services have in stock for them. In other words, to make a successful sale, your product or service offerings should be convincing, providing solutions and satisfying needs.
The characteristics that your product or your services have or do are the features. The unique features that a product possesses can set it apart from the competition. Features can tell about the capability of a product or service. However, the value of a product feature is determined by whether or not the users see those features to be valuable. This is a sort of business valuation and analysis by customers.
As much as listing the features of a product and service is important, the benefits are ultimately more important to users and hence need more emphasis in your sales effort. Updates on products and services should be made for any new or additional benefits desired by users.
If the benefits of a product or service are generally more important than features, then when do features matter the most? Of course, there are times when features make almost all the difference, because they provide users with clues on how well your products or service will deliver its benefits. A unique feature about a product may provide a competitive advantage when the products in a category are having the same basic benefits.
If a product or service is easily comparable with that of the competitors, consumers’ choices will be made based on the product or service with the most features. For example, if a particular cellphone model has an additional security lock setting and if this same feature is missing on a competitor’s phone, users may choose the model with the extra feature even if they do not know anything about security lock or how to use it. This is so because of how easy it is to compare the feature sets and not because the extra feature is so important to them
Your business plan’s products and services section should indicate your products and services, their importance in the market, how you intend to compete with alternatives, and your competitive advantage. The product and services section of your company’s business plan show have the following attached:
The first thing to know is to get the attention of people you want to partner with or invest in your company through this product and service section. This shows how important it is. To create such area that will attract and appeal to your readers, you should:
Show the importance of your products or services and why the market needs them. This is important, especially for new businesses or old ones venturing into a new invention, concept, or a place without a market. You need to carefully explain the need for your products in such a market.
The features of your products or services should be highlighted, such as the price, what makes your products unique, and your level of service. This is where you should sell your business well to those who read your business plan.
Focus on the product’s benefits. While it is good to mention the features of your products or services, writing more about the benefits will do the magic you want—covert your product’s characteristics to benefits. The primary goal is to show that your product will solve a problem.
Your business plan should be concise and clear. Avoid every form of ambiguous writing. You should use numbered lists to highlight important information. This will make it easy for readers to flow and get the message you want to convey easier.
Show your experience, experience, and accolades. You can add your awards, endorsements, and testimonials here. All of them should be in line with your business plan. Also, indicate if you applied for any intangible asset like copyright, trademark, or patent.
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