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The Products and Services Section in a Business Plan
How to Write the Business Plan Products and Services Section
- The Products and Services Section
- What to Include
- Tips on Writing the Section
The products and services section of your business plan is more than just a list of what your business is going to provide. This section of your business plan should include details about how you'll price products and services, how you'll fulfill orders, and other details that investors need to hear before you can get funding .
Additionally, it should outline the unique selling points of your offerings and explain how they stand out from competitors. Providing information on awards received, potential suppliers, and manufacturing processes can also strengthen this section and build investor confidence. Learn more with the guide below.
Key Takeaways
- Business plans include details about the products and services you'll offer, including exactly how you plan to market, sell, and deliver on customer orders.
- The best business plans are clear and concise.
- The products and services section of your plan should show why your product or service is needed.
- The products and services section should also convey the expertise and experience you have to succeed.
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.
You should also include the sales literature you plan to use. Detail your marketing materials, and clarify the role your website will play in your sales efforts.
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 partnerships, up-to-date computer equipment, or manufacturing processes. 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.
Avoid acronyms and jargon when outlining your products and services.
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 tailgate
- Dump Truck w/functioning dumping mechanism and box
- Biplane (two-seater) w/movable propeller
- Steam engine with coal tender - additional cars available separately: caboose, flat car w/logs, box car, tank car, coal car
- Flat-Bed Truck w/logs
Wooden Grain Toys will offer its products for the following prices:
- All-Purpose Pick-Up Truck w/movable doors and tailgate - $25
- Dump Truck w/functioning dumping mechanism and box - $30
- Biplane (two-seater) w/movable propeller - $20
- Additional train cars (single car) - $5
- Additional train cars (three cars) - $12
- City Bus - $12
- Tow Truck - $18
- Flat-Bed Truck w/logs - $35
- Sports Car - $20
- Sedan - $20
What is the products and services section in a business plan?
A products and services section of a business plan clarifies exactly what your business will produce , how much it'll sell for, and other details along those lines.
What are examples of products and services?
A product or service can be anything a business creates to turn a profit. Some businesses have both products and services. For example, a restaurant's services include cooking for and serving customers. The restaurant's products are the dishes and drinks it creates.
Small Business Administration. " Write your business plan ."
Expert business plan and financial models
How to Write a Business Overview (+ Examples)
- September 4, 2024
Crafting a compelling business overview is a pivotal step in developing a robust business plan. This section not only introduces your business to potential investors, clients, and partners. It also lays the foundation for understanding your company’s business model, target audience and the unique value proposition it brings to the market.
In this comprehensive guide, we’ll guide you through the essentials of writing an effective business overview, accompanied by 2 practical examples taken from real business plans.
Whether you’re an entrepreneur drafting your first business plan or a seasoned business owner, drafting a clear and concise business overview is crucial for articulating your business to investors and lenders. Let’s dive in!
What is a Business Overview?
A business overview in a business plan is a section that provides a concise description of the fundamental aspects of the business.
It serves as an introduction to the business, offering readers a clear understanding of what the business does, its mission, vision, and the market needs it intends to satisfy.
The business section is crucial for setting the context for the detailed plan that follows, giving stakeholders (including potential investors, partners, and employees) a snapshot of the business’s purpose, business model and products and/or services.
What to Include in a Business Overview
The key elements to include are:
- Business Name: The legal name of the business
- Location: its physical location(s) , meaning its headquarters and office(s) and/or store(s).
- Business Structure: The legal structure of the business (e.g., sole proprietorship, partnership, corporation, LLC).
- History: A brief history of the business, including its founding, milestones achieved, and any significant changes or developments.
- Products or Services: A description of the products or services offered by the business, highlighting what makes them unique or valuable to customers.
- Target Market : An overview of the business’s primary customers – who they are and what needs or problems the business aims to solve for them.
- Business Model: An outline of how the business plans to make money, detailing its revenue streams, pricing strategy , sales and distribution channels, and any major partnerships or customer segments.
How to write a Business Overview: 4 Steps
Writing a compelling business overview and operations section is a crucial element of a business plan. It provides readers, including potential investors and partners, with a clear picture of what your business is, what it does, and how it operates on a day-to-day basis. Here’s a structured approach to writing these sections:
1. Start with an Introduction
Begin your business overview section by introducing the name of your business, its location, and the type of business structure (e.g., LLC, corporation, partnership). Provide a brief history that includes the founding story, milestones achieved so far, and the current stage of the business.
Key Components Business name and location Type of business entity Brief history and current stage* * optional: only if you are preparing a business plan for an existing business
2. Define Your Business Concept
Explain your business concept clearly and concisely. What is the core product or service you offer? Who is it for, and what needs does it address? Highlight what makes your offering unique and how it stands out in the market.
Key Components Description of products or services Target audience Unique selling proposition (USP)
3. Detail Your Business Model
Clearly articulate how your business intends to make money. This includes your revenue streams, pricing strategy, sales and distribution channels, and any key partnerships that support your business model.
Key Components Revenue model Pricing strategy
4. Describe Your Operations
Moving into the operations part of your business plan, provide a detailed account of how your business runs daily. This should include your location(s), facilities, equipment, and the technology you use. Explain your production processes or how your service is delivered, your supply chain, and any logistics involved.
Key Components Physical location(s) and facilities Production process or service delivery method Supply chain and logistics Inventory management Any proprietary technology or processes
Business Overview: 2 Examples
Here are 2 examples you can use as an inspiration to create yours. These are taken from our coffee shop and driving school business plan templates.
Coffee Shop Business Overview
Driving School Business Overview
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How to Write the Products and Services Section of Your Plan
1 min. read
Updated January 3, 2024
A complete business plan describes what you sell: either products, services, or both. This section needs to be more than a simple list of what you provide. It should detail the problem you’re solving, the value you provide, how it compares to the competition, and logistical information like pricing and distribution.
Learn how to go beyond simple product or service descriptions and create a compelling narrative around what you intend to offer.
What to include in the products and services section
What you add to this section fully depends on how much information you need to include in order to fully describe your products and services. While you may end up not including everything, it will benefit your business to work through these common topics.
A description of the problem and your solution
Successful businesses solve a problem for their customers. They make their lives easier or fill an unmet need and you need to identify and effectively describe a pain point that you are solving.
Optional information to strengthen your product and services section
While not required, there are additional pieces of information about your product and service offerings that you may want to include. These can be especially valuable for convincing investors that you have a business worth investing in.
Demonstrate business traction
Traction is an early indication that customers are eager to buy what you’re selling. Early sales, pre-orders, sign-ups, or contracts are just a few ways you can prove your idea has merit.
Understand the importance of intellectual property
Do you have patents, copyrights, or trademarks? It may be valuable to mention them here. They can be further proof that your idea has merit and the legal standing to be successful.
Why is the products and services section important?
The products and services section of your business plan provides the chance to describe why you’re in business. This will range from specific product or service details, such as pricing information, to more personally driven elements like your mission statement.
The point is that you need to paint a convincing picture, both technical and sentimental, of what you offer, how it works, and why it’s valuable. It needs to be a section that stands on its own and that is fully supported by the other sections of your plan.
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Table of Contents
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- Optional information
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The products and services section of a business plan is a critical component that outlines what your company offers, how it meets customer needs , and what sets it apart from competitors. This section provides an opportunity to showcase the value and uniqueness of your offerings, helping investors and stakeholders understand the core of your business. In this article, we will explore how to write an effective products and services section in a business plan, providing valuable insights and tips to help you create a compelling and informative segment.
Key Takeaways
- Understand Your Target Audience: Tailor your descriptions and language to your specific target audience. Use terminology and explanations that resonate with them and highlight how your offerings meet their specific needs.
- Focus on Benefits, Not Just Features: While it’s important to outline the features of your products or services, it’s equally crucial to emphasize the benefits they bring to customers. Clearly communicate the value proposition and the positive impact on customers’ lives or businesses.
- Highlight Competitive Advantages: Identify and emphasize what sets your offerings apart from competitors. Whether it’s pricing, quality, convenience, customization, or any other aspect, highlight your strengths and differentiators.
- Be Clear and Concise: Use clear and concise language to ensure easy understanding. Avoid technical jargon or complex explanations that may confuse readers.
- Use Visuals: Incorporate visuals such as images, charts, or diagrams to enhance understanding and showcase your products or services visually.
- Include Relevant Legal Considerations: If applicable, discuss any patents, copyrights, or trademarks associated with your products or services, demonstrating the measures you have taken to protect your intellectual property.
Understanding the Importance of the Products and Services Section
The products and services section of your business plan plays a vital role in conveying the essence of your offerings. It helps potential investors, lenders, and partners understand what you offer, its benefits, and how it satisfies customer demands. This section serves as a platform to demonstrate your understanding of the market, highlight your competitive advantages, and differentiate your products or services from others in the industry. It should inspire confidence and showcase your ability to deliver value to your target audience.
Developing an authentic and compelling products and services section in your business plan is essential for effectively communicating the value and differentiation of your offerings. By following the steps and tips outlined in this article, you can create a standout section that captivates readers and instills confidence in your business.
Customer-Centric Approach:
When crafting the products and services section, it’s crucial to adopt a customer-centric approach. Understand your target audience and their pain points, desires, and preferences. This understanding will guide you in tailoring your offerings and messaging to address their specific needs effectively. Consider conducting market research, surveys, or focus groups to gather insights into customer preferences, which can inform the development and positioning of your products or services.
Clear Communication of Benefits:
While it’s important to describe the features of your offerings, it’s the benefits that truly resonate with customers. Clearly articulate how your products or services improve their lives, solve their problems, or fulfill their desires. Use language that is relatable and engaging , focusing on the outcomes and positive impact your offerings bring. Whether it’s saving time, increasing efficiency, enhancing productivity, or providing cost savings, highlight these benefits in a concise and compelling manner.
Addressing Objections and Concerns:
Anticipate potential objections or concerns that customers may have about your products or services. Address these directly in the products and services section to instill confidence and overcome any hesitations. Whether it’s addressing quality, scalability, support, or any other concerns, provide reassurances and explanations that demonstrate your commitment to customer satisfaction.
Incorporating Testimonials and Case Studies:
To strengthen the credibility of your offerings, consider incorporating testimonials or case studies from satisfied customers. Real-life examples and success stories help build trust and provide social proof. Highlight the positive experiences and outcomes of customers who have benefited from your products or services, showcasing the value they have derived.
Competitive Analysis:
A comprehensive products and services section should include a competitive analysis. Identify your main competitors and analyze their offerings, strengths, weaknesses, and market positioning. Highlight how your products or services differentiate from the competition and offer a superior value proposition. This analysis demonstrates your market awareness and positions your business as a viable and compelling option in the industry.
Continuous Improvement:
Emphasize your commitment to continuous improvement in the products and services section. Discuss how you gather customer feedback, analyze market trends, and use these insights to enhance your offerings. This conveys that your business is adaptable and responsive to changing customer needs and preferences, further reinforcing your competitive advantage.
By expanding on these key points, you can create a products and services section that effectively communicates the value, benefits, and differentiation of your offerings. Remember to maintain a customer-centric focus, utilize clear and engaging language, address potential concerns, and incorporate evidence of customer satisfaction. A well-crafted products and services section will showcase your business’s understanding of the market and its ability to deliver exceptional value to customers.
Structuring the Products and Services Section
Start with an overview:.
Begin by providing a brief overview of your products or services. Clearly state what you offer and how it fulfills customer needs or solves their problems. Capture the attention of your readers with a compelling introduction.
Describe Your Offerings:
Provide a detailed description of each product or service you offer. Highlight their key features, functionalities, and specifications. Use clear and concise language, avoiding technical jargon that may confuse readers who are not familiar with your industry.
Explain the Benefits:
Clearly articulate the benefits and advantages your offerings provide to customers. Focus on how your products or services address pain points, enhance efficiency, save costs, improve outcomes, or bring unique value to the market.
Illustrate the Unique Selling Proposition (USP):
Differentiate your offerings by highlighting what sets them apart from competitors. Identify your USP, which could be a distinctive feature, superior quality, innovative technology, exceptional customer service, or any other factor that gives you a competitive edge.
Provide Supporting Evidence:
Back up your claims with evidence and data. Include testimonials from satisfied customers, case studies, market research findings, or any other relevant information that showcases the credibility and value of your products or services.
Discuss Product Development or Service Expansion:
If applicable, outline your plans for future product development or service expansion. This demonstrates your vision for growth and adaptation to evolving market needs.
Crafting an effective products and services section in your business plan is crucial for capturing the attention of investors, lenders, and stakeholders. It is an opportunity to showcase the value, benefits, and unique selling propositions of your offerings. By following the steps outlined in this article, you can create a compelling and informative products and services section that effectively communicates the essence of your business.
Remember to tailor your descriptions to your target audience, focusing on the benefits your offerings bring to customers. Highlight your competitive advantages and provide supporting evidence to back up your claims. Clear and concise language, along with visuals, can enhance understanding and engagement.
The products and services section is your chance to demonstrate your market understanding, differentiation, and value proposition. Use this section to paint a compelling picture of how your offerings meet customer needs and pave the way for success in your industry.
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How to Write a Company Overview for a Business Plan
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When you start a company, you ideally want it to grow. If you’re seeking business funding to scale your business or an initial investment to get your business off the ground, you’re going to need a business plan . Putting together a business plan can be an intimidating process that involves a lot of steps and writing — but breaking it down piece by piece can help you accomplish this seemingly insurmountable task.
One small piece of your business plan is the company overview, so let’s take a look at what that is, exactly, check out some company overview examples and go over how to make a company overview of your very own.
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What is a company overview?
A company overview provides the reader of your business plan with basic background information about your company so they have an understanding of what you do, who the management team is and what customers your business serves.
The company description is the second piece of a business plan, falling right after the executive summary. Similar to the executive summary, your company overview will be short and succinct. Your reader needs to have a grasp on what your business does and who your customers are, even if they have limited time.
Why do I need a company overview?
The company overview is the part of your business plan that gives the basics and background of your business. It’s the foundation on which you will build the rest of your business plan.
If you’re looking to appeal to investors or potential clients, you need a reader to make an informed decision about your company. Before they can do that, they must know what your company does and who your customer is. Lenders in particular need a reason to keep reading, since they see tons of business plans regularly. The company overview provides those answers, and it will help you get a better sense of your business so you can firm up things like your marketing plan.
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What should I include in a company overview?
The exact elements that you need in your company overview will depend upon what details of your business are important, but there are some foundational elements that will be included in every company overview.
Once you’ve covered the basics, you can include any other minor details that will benefit a reader who will need to make an informed decision about your business.
Basic company information
Consider the company overview like an introduction for your business. In the opening paragraph of your company overview, you’ll want to include basic company information. That includes:
Your company name: This should be the official name of your business, exactly as it is written when you registered your business with the state.
Business structure: Your reader will want to know what business entity your company comes in: sole proprietorship, LLC, partnership or corporation.
Location(s): Share where your business is headquartered and other locations the business owns.
Ownership and management team
Break down who owns your business and how each owner is involved with the business. What shares of the company belong to whom? If you have a highly involved management team, share their names and key roles with the company as well.
Company history
Part of what makes your company unique is its history. And, even startups have some history. Don’t put too much focus on this section, but do add some personality and interesting details if possible, especially if they relate to your company culture.
Mission statement
Your company’s mission statement should be included in the company overview. If you don’t yet have a company mission statement, that’s okay. Think of a mission statement as the purpose of your company.
If you don’t have one, you can create one with your team. Or you can simply replace the mission statement with a problem statement. Your business idea should exist to solve a problem or pain point faced by your customers. Share what that problem is and what your business does to solve it. That’s essentially your mission statement.
Product/service and customer
This section of the company overview is where you can share the nitty-gritty details of your business. Talk about what product or service you provide and to whom you provide it. You can share some numbers here, but in general, save the numbers for later in your business plan.
The company overview should give the reader a general understanding of your business, your product or service, and your customer. If they’re interested to know more, they’ll reach out to you for a meeting or take the time to read the rest of your business plan. Keep it simple and straightforward here.
Future goals
While concrete details and facts about your business are important to whoever is reading your company overview, it’s also important to share your dreams and your vision. If you’re writing a business plan for a business that’s already in place, it’s very likely you’re looking for business financing to scale or solve a business problem. If you’re just starting out, though, then it’s likely you’re hoping to find startup funding.
The section on your future business goals should include a brief description of your growth goals for your business. Where you are now tells the reader a lot, but they also want to know where you plan to go.
A company overview is comprised of many small parts. Each part shares just a little bit more about your company with your reader.
Tips for writing a company overview
While a company overview is simply the details of your company written out, it might not be easy to write. Break it down into small steps and use these tips to make putting together your company overview just a little bit easier.
Start with the elevator pitch
If your business is already in operation, then you likely have an elevator pitch. Your company overview can start off with your elevator pitch.
The first paragraph of your company overview should include just a few sentences that explain your business and what you do. The shorter and clearer this is, the more likely your reader will understand and keep reading.
Stick to the basics
It’s tempting to pile on all the details when you’re writing a company overview. Remember, many of the details of your company, including the numbers, will be included in later sections of your business plan.
Your company overview should include only the most basic details about your company that the reader needs to know.
Be passionate
When you share the history, mission statement, and vision for the future of your company, it’s okay to show your passion. You wouldn’t be in business if you didn’t love what you do.
Your excitement for your business could spark interest for the reader and keep them engaged with your company overview and business plan.
Keep it succinct
When you’re passionate about something, it’s easy to get carried away. Remember that you’ve got plenty of space for details in your business plan. The company overview should be just the most basic information someone needs to understand your business.
It’s OK if your first draft of your company overview is long. Simply go through and edit it to be shorter, removing unnecessary details and words each time you read through it. Clear, concise descriptions are more likely to be read and to keep the reader reading to other sections of your business plan.
Have structure
Your company overview is just one piece of a multi-tiered business plan. Creating a clear structure for your business plan makes it easier to read. The same is true for your company overview.
Your business plan should have chapters, one of which is the company overview. Then, you can further break down the content for easy skimming and reading by adding sub-chapters. You can denote these breaks in content with bold headers.
While you can break down each section of the company overview with bold headers based on the above suggestions, you can also interweave some information together, such as the company structure and leadership structure. Each section should be only a few sentences long.
Write it later
If you’re struggling to write your company overview, come back to it. Write the rest of your business plan first and then write your company overview.
While this might seem like the opposite way of doing things, knowing what will be contained in the rest of your business plan can help you to focus in on the very most essential details in the company overview and to leave everything else out.
Get a test reader
If you’re struggling to edit down your company overview, get a test reader. Ideally, you’ll want to ask someone who doesn’t know a lot about your business. They’ll help you understand whether or not you’ve clearly communicated your message.
Proofreading is the final step in editing something you’ve written. This type of editing looks for typos, misspellings and grammatical errors that have been missed. Many of these small errors can be difficult to spot in our own writing, so be sure to ask someone who hasn’t seen multiple drafts of your company overview.
Company overview examples
If you don’t want to shell out for business planning software, but would still like some company overview examples to get you started, there are many places online you can look to for help getting started, like the Small Business Administration and SCORE.
Many successful companies also have some version of their company overview made public as their company profile page online. There are some variations from the company overview steps we’ve listed above, of course, but you can use the language and style of these company overview examples for inspiration:
Starbucks company profile .
Puma company page .
TaskRabbit About page .
Peloton company page .
Nestlé About page .
If you’re still feeling stuck, or want more company overview examples, try searching the websites of your favorite companies for more information. You might be surprised what you find — the Nestlé page, for example, has more information about their strategy and business principles.
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For services, describe the process, customer experience, and outcome. For products, discuss the materials, technology, and any unique features. Learn how to craft a business plan's products and services section in a business plan, with real examples from completed business plans.
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.
Discover essential steps for crafting a business overview in your business plan, including products, target market, and business model.
The products and services section of your business plan provides the chance to describe why you’re in business. This will range from specific product or service details, such as pricing information, to more personally driven elements like your mission statement.
Begin by providing a brief overview of your products or services. Clearly state what you offer and how it fulfills customer needs or solves their problems. Capture the attention of your readers with a compelling introduction.
A company overview provides the reader of your business plan with basic background information about your company so they have an understanding of what you do, who the management team is...