A well-written product description in your business plan has the potential to attract investors and aid in the expansion of your company.
In addition to describing your manufactured goods, your product description should emphasize the benefits of the goods. These benefits must align with your business.
This article discusses developing a product description for a business plan and offers writing advice to help you craft your own.
What Is a Product Description in Business Plan?
The product description in the business plan describes all the products the company produces.
A business plan product description describes a product or service, the firm supplying it, the problem it answers, the price, and the target market. Your product description should explain how your products differ from similar ones on the market or why they’re needed if no market exists.
Product descriptions should be factual and not promotional or salesy. As with other business papers, a product description should be in the first person, so it doesn’t appear overly promotional.
A product description in a business plan should be understandable, so the value of your products is clear.
What Does a Product Description Entail?
A product description introduces your product to potential investors and customers. The following items below should be included in the document when presenting your product to potential investors and customers.
1. Features and Benefits of the Product
Describe the features and benefits of your product. If your product addresses a problem for customers, this section should convey that information.
2. Your Product Vs. Competition
Take a look at the competition and see how your product stacks up. Make a case for why your product is better than your competition’s offerings.
3. Price of Product
Include the price of your product and how it compares to other similar products on the market in your pitch. The cost of production, the selling price, and the profit margin all need to be discussed.
You should add this information if you’ve had your product tested by professionals in the field. Including any certifications, intellectual property, copyrights, or patents is also a good idea.
These awards and honors bolster your product’s credibility. As a result of being awarded patents and trademarks, your company is the only one that can make this product. This increases the product’s worth.
5. the Life Cycle of the Product
The idea, prototype, and expansion stages are part of a product’s life cycle. If you’re still in the concept stage, use this section to explain how you’ll build the product and why it’s necessary.
If you already have a prototype, discuss how you intend to evaluate it and manufacture your product. Include it here if you have been producing your product but need to grow to meet demand.
6. Distribution and Sales Strategy
Describe your product’s distribution strategy, including how and where it will be sold. Vendors, brick-and-mortar stores, and online retailers are examples of possible sales channels. If you already have a list of suppliers selling your goods, insert their names and addresses here.
7. Product Delivery to Final Consumer
How do you intend to get your product into the hands of your clients? All the manufacturing and shipping details should be included here. Include information on the manufacturer, such as their location and manufacturing time. It is advisable to outsource the production of your goods, including delivery schedules and methods.
Identify any unique equipment, materials, or technology required to produce your product.
9. Future Expansion Projections
As your firm grows, describe your product development and introduction plans.
10. Evidence in the Form of Photos and Brochures
Photos and brochures can help investors visualize your goods. Include pictures and brochures in an appendix to your business plan, but reference them in the product description.
To Wrap Up
With a business plan product description, you’ll enlighten the reader about the firm, the product, and its market.
A product description tells the reader what the product is. It also explains how it works, how it benefits the company and consumers, and how much it costs.
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