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The core purpose of any business is to sell its offerings to its target customers.
To do this, you devise a plethora of strategies, tactics, and plans. While that is important, your sales ultimately depend on the value you provide to your customers through your products and services.
FYI, we have used the term “product” in this article to refer to both products and services unless mentioned otherwise.
The products and services section of your business plan is where you mention and elaborate on your product range, product descriptions, pricing strategies, and other relevant details.
If you’re looking for partners or investors, this section plays a crucial role in persuading them. What you include in this section and how you write it can deeply impact whether or not your investors will seal the deal with you.
In the products and services section of your business plan, you provide an overview of what you offer. Here are all the key elements your products and services section should cover:
In this part, you include all the important details of your offerings. To write an accurate description, you can use the 5W2H method and answer these questions:
A pricing strategy refers to the tactics you use to set a price for your products and services. There are several pricing strategies to choose from; you can pick the one that best fits your business model.
There are several things to consider before setting your price. Conduct a price analysis to get an idea of which pricing strategy works for you. Here are the steps involved in conducting a pricing analysis:
After conducting a pricing analysis, you can look at these pricing strategies to choose one for your business.
Regardless of what you’re selling, chances are someone in the market is already selling it. Unlike direct competitors, indirect competitors are those who sell similar products with slight variations.
Looking at your competitors can help you draw a comparison. To do that, examine their products and services and list down the similarities and differences.
Categorize this information into qualitative and quantitative aspects and organize it in tables. Finally, summarize it by including your advantages over competitors. Also, include how you will leverage them to balance your drawbacks.
Sales literature refers to the promotional and informative materials you use to inform, clarify, and convince your customers to make buying decisions. These include brochures, catalogs, newsletters, price lists, customer testimonials, and case studies.
List out all the sales literature you use or plan to market your products and services; explain the information it conveys in brief. Another integral part of your sales literature is your website; explain how it contributes to your sales.
Perhaps you run a blog to promote your products and inform your customers about new releases. Maybe you sell your products and services directly from your website; in that case, your sales literature material will go there.
Sales literature is a quick and attractive tool to market your products and services.
Order processing refers to the stages from the moment a customer places an order to the delivery of the product paired with after-sales services. Here, you explain how customers will order or buy the product and the delivery process.
For instance, if you are an online retail store, your order processing may include these stages:
Depending on your offerings, your order processing workflow can have several stages. Describe each step and provide elaborate details about the execution.
If the delivery or creation of your products and services need any resources, you mention them here. These include equipment, vehicles, technology, and software.
For instance, a cafe owner will need kitchen equipment and IT solutions to run and provide its services. These should be mentioned in this part of the products and services section.
To cite another example, a consumer electronics company needs an IT infrastructure and production facility to create its products. For delivery, it needs vehicles and an online portal for customers to place and receive orders. All these are mentioned here.
Mention all the IP documents that are related to your products and services. These include trademarks, seller permits, patents, other licenses, etc. Here you can also include any legal issues you are currently facing. Explain how you are dealing with the existing issues.
Further, mention the issues that might occur in the future and the counteractive measures you will take to prevent them. These include adding safety labels, and disclaimers, opting for insurance policies, etc.
This is a chance to impress your investors or partners by briefing them about your future products or services. This shows that you’re already working on new ideas which help convey your potential and dedication.
If your future products are an extension of your current ones, you can rodenticide an outline of the improvements made. Mon whether your future products are under development or ready for launch.
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