Product Description: An example of how to write a detailed description, write a business plan

Previous Steps of Starting Your Own Business Guide

We continue to draw up a business plan according to the Entrepreneur-Pro version. By now, we have made a "Cover Sheet", "Content and Summary" and a section "About the Company". Now we have everything to start the essence of the planning process for any business, i.e. what he will sell - goods and / or services. The section "Description of products in the business plan"

Product Description in Business Plan

So far, we have developed introductory elements aimed at capturing the interest of readers of the business plan for further reading. If in the previous sections you managed to get the reader's attention, then the next thing he wants to read is a description of the product or service you are selling.

Every business sells something. And part of the money received from sales again needs to be invested in the business. This is the main cycle of any business. That “something” can be a product, or a service, or a combination of both. In recent years, a new type of product has been noticed on the market - an electronic (or informational) product. And this is also a business.

The purpose of this chapter is to accurately define the characteristics of a product and / or service, and to clearly indicate the benefits that the consumer will receive from these products and / or services. Therefore, I recommend using this section of the business plan to improve your business idea.

Contents of the section "Description of products in the business plan"

You should include the following subsections here:

  • Introductory summary of products and / or services.
  • Description of products and / or services.
  • Comparison with competitors (by product and / or service).
  • How will you receive products and / or services?
  • Future plans.

Introductory summary

Example product description in a business plan example

Our business plan, started in two previous publications, has already begun to take on a clear outline of its description. We already know how to write the title page of a business plan, how to present a description of the company to a future investor, the turn of the next section has come - a description of the services provided or the products sold. By the way, it was the first two sections of the project description that were aimed at attracting the interest of a person who is ready to invest in your project. If you have achieved your goal - congratulations! Now, until the complete "victory" you have to make 2 steps less. Let me remind you that you can see the full structure of the business plan at this link.

The basis of any business is sales. It does not matter whether it is a product or a service offer, it is still a sale. A part of the proceeds from which "goes into business" again - for development, purchase of raw materials, consumables, etc. This “turnover” is called the “business cycle”. And in addition to describing your product or service in the "Service Description" section, you must also display the order of your business cycle.

This section of the business plan can be conventionally divided into subsections. The structure of the description of products and services is approximately the following (it is not necessary to write their titles in the "body" of the project - you outline them for yourself):

  • Introductory characteristics of the offered goods and / or services
  • Specific description of each of products and / or services
  • Comparative analysis with similar products and / or services offered by competitors
  • Description of how the offer will be presented on the market (how the consumer will be able to obtain this product and / or service)
  • Prospects for product and / or service development

Let's take a closer look at each of these subsections, which together should be a well-structured, coherent text, the main purpose of which should be to present your product and / or service in a favorable light.

Introductory characteristic

This is a kind of "annotation" to the entire section, where you should state in a few words what exactly will be discussed, a kind of navigation through the pages describing services and products in the business plan. Please note that this section should be created not only for a specific reader - an investor, or a customer of a business plan (if you are drawing up business plans to order), but for you personally, this should be an auxiliary element for writing the rest of the material. Moreover, you can write this section 2 times. The first time - in the process of writing the sections of the business plan, the second time - to adjust to adapt to the already written business plan. back to contents ↑

Description of product, service

After a short "acquaintance", you can proceed to a detailed examination of each proposed product. Don't overdo it in trying to show your product in as much detail as possible. Pay more attention to clarity, because for a layman in a specific issue of business, production, etc. (which most investors are) technical language will look like gibberish.

In your description, try to answer the following questions:

The answer to each question should not exceed 500 characters of text, unless, of course, your product is very specific, and in order to understand the essence of the proposal, you need a more detailed description. Therefore, learn to concisely, but as fully as possible, express your thoughts. Remember that brevity is the sister of talent?

In the same subsection, show which terms make up the price of one unit of a product (product, service), and what will be the profit of the organization from the sale of exactly one unit of this product. back to contents ↑

Previous steps of the guide to starting your own business We continue to draw up a business plan according to the Entrepreneur-Pro version. By now, we have made a

If you could not find a business plan (BP) with a description, characteristics of the product that you plan to promote, then you need to start compiling it yourself. What sections does the business plan include? What stages in its preparation are known? Finally, how do you generate genuine interest from investors? We will analyze all these and other equally interesting questions in the article.

Project Product Description or Business Plan

A business plan should be understood as the company's strategy in relation to management, marketing and financial activities. It is drawn up as an official document. BP allows you to highlight all aspects of the future business, take into account existing risks, calculate investments and the timing of the return of funds. It is advisable to consider in more detail how to correctly write a product description. You should understand how important it is to draw up a document on paper. This is the first thing an investor will look at at the presentation of the project. As an example, consider the description of a software product below.

Business plan: functionality

Perhaps the main requirement when drafting a document is the ability to demonstrate an idea so that investors clearly understand where to invest or not to invest money. If the description of products and services is written correctly, there will certainly be interest from various funds, banks and other structures. Business planning helps to structure and organize all the information about a project. With its help, you can create settings for the planned expansion of the future infrastructure, as well as correctly identify the time suitable for investing money in the development of the project.

Today, many newbie entrepreneurs can only write brief product descriptions. They only in general outline represent what functions a priori the business plan performs. Below we will consider its varieties that exist today.

Tips for drafting

In order to present investors with a decent product description, there are several tips for drawing up a business plan:

  • The text should contain simple and readable formulations, concepts: two-digit interpretations are prohibited.
  • The business plan should be no more than 25 pages.
  • The product description file is compiled in accordance with generally accepted norms.
  • It is important to provide the potential investor with complete information about the project.
  • All calculations and conclusions in the project must be supported by specific figures, facts or research conducted in advance.
  • All sections of the product description must be interconnected. Each of them complements the general positive opinion of the audience about the project.
  • Having studied the business plan, the investor should see the potential of the project, so it is worth working on this issue separately.
  • It's important to keep things flexible. Explanation: if your business plan does not exclude making additions, changes or clarifications, then it can already be considered better than the competitive one.
  • Methods of control over future activities should be specified.

Principles of BP compilation

It is not difficult to draw up a business plan, the main thing is to think over in detail the main idea of ​​a startup. It is advisable to consider a step-by-step algorithm that allows you to develop a document yourself. First, you need to identify the "strengths" and "weaknesses" of the business idea. You should not stop working on a project at the first stages if suddenly there are more negative points than positive ones, because each negative is a unique growth point for a business. A detailed analysis is also needed for the sales market.

Product Description Example

If, after conducting the research indicated above and calculating the initial monetary indicators, you have not changed your mind about implementing the idea of ​​a startup, it is advisable to start forming a business plan. The complete BP contains 12 sections. Let's consider them on the example of describing the development of a software product.

When starting your own business, it is important for a beginner entrepreneur to find a good example of a marketing plan in a business plan - this is exactly what is presented in our material. Let's consider what the marketing plan contains, what tasks it faces, how it helps to successfully enter the market and whether it is possible to do without it at all.

What the marketing plan should contain

A marketing plan is the part of a business plan that reveals how an entrepreneur will market their product. The marketing strategy in the business plan is based on market research, choice of working methods and product promotion.

Marketing plan structure:

  • Analysis of demand for a product / service in a region / city. Forecast - will demand rise or fall in the coming year? Why, can this be influenced?
  • List of competitors and their methods of work. What are their advantages and disadvantages? How do they attract customers?
  • What drives demand? Price, quality, season? Determination of influencing factors and methods of working with them.
  • Target audience of buyers / clients. Who are they, what are their incomes, how often do they need a product / service?
  • Competitive advantages. How will the company differ from competitors?
  • Listing of ways to sell products: direct sales, indirect sales, online trading, and others. Determination of the main method that will bring the bulk of the profit.
  • Rationale for pricing policy. Calculation of the cost, the size of the trade margin (with an explanation), the main provisions of the pricing policy.
  • Goals and criteria for success. By what indicators should the company judge its success / failure?

Answering these questions will help you prepare a quality marketing plan. Content may vary depending on the nature of the business. It is important to understand that drawing up this part of a business plan is not a matter of one day or even a week. You need to study the market and your product well in order to answer all the questions correctly.

Tasks of Marketing Research

Preparation of a marketing plan should be based on special research. Then the business plan will turn into a powerful tool for promoting the market and making a profit. Without research, it will remain a file in the author's laptop. To get the whole range of necessary information from marketing research, the following tasks are set:

  • Research competitors. How many companies are direct and indirect competitors? How long have they been working? Can they be called successful and why?
  • Study the demand. Is the product popular in the region? Can you call it scarce? What characteristics make it in demand?
  • Study the target audience. Who will buy the product - students, parents with children, or retirees? Why exactly are they? Can you expand your audience? Why do they need this product and what can they love it for?
  • Compare prices. What are the minimum and maximum prices for this product on the market? What price will be optimal for your own product - will cover all costs, give competitive advantages and bring profit?
  • Reveal market development trends. Will the demand for the product change in the short and long term?

From the complex of marketing research tasks, one can deduce a general goal - to collect all the necessary information about the market in a particular area. Without such information, you cannot successfully start a business. Without collecting product and competitor data, any marketing plan in a business plan won't do any good.

Previous Steps of the Guide to Starting Your Own Business

We continue to draw up a business plan according to the Entrepreneur-Pro version. By now, we have made a "Cover Sheet", "Content and Summary" and a section "About the Company". Now we have everything to start the essence of the planning process for any business, i.e. what he will sell - goods and / or services. The section "Description of products in the business plan"

Product Description in Business Plan

So far, we have developed introductory elements aimed at capturing the interest of readers of the business plan for further reading. If in the previous sections you managed to get the reader's attention, then the next thing he wants to read is a description of the product or service you are selling.

Every business sells something. And part of the money received from sales again needs to be invested in the business. This is the main cycle of any business. That “something” can be a product, or a service, or a combination of both. In recent years, a new type of product has been noticed on the market - an electronic (or informational) product. And this is also a business.

The purpose of this chapter is to accurately define the characteristics of a product and / or service, and to clearly indicate the benefits that the consumer will receive from these products and / or services. Therefore, I recommend using this section of the business plan to improve your business idea.

Contents of the section "Description of products in the business plan"

You should include the following subsections here:

  • Introductory summary of products and / or services.
  • Description of products and / or services.
  • Comparison with competitors (by product and / or service).
  • How will you receive products and / or services?
  • Future plans.

Introductory summary

Introductory summaries should be written just below the section title. Before starting to fill in the remaining subsections, you briefly indicate what will be discussed next. Consider the section introductory summary as analogous to the summary of the business plan as a whole - it can help you write the rest of the subsections, and at the end it can be adapted to the content. In each part of the business plan, try to give a brief overview of what will be covered in the upcoming subsections. This way you will make it easier for the reader and yourself to navigate.

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