Startup Business Plan – Product or Service Description Section

Startup Business Plan – Product or Service Description Section

hi it’s Kathy. thanks for checking out the
third video in the working for Wonka how to write a business plan series. in
this video are going to go over the products for service description: and this will probably be the easiest section for you to write. because it there’s anything that your
entrepreneur and hopefully you, know it’s your product or service. it’s why the
company was founded it’s why you’re in business, it’s what you’re about. however, although your entrepreneur may have
an uncanny knack for knowing what’s the right product for the right market at the right time
they may have a total inability to articulate the why behind
that product. and that’s what you’re going to flesh
out in your product or service description. to do that and we’ll take you back into
the elevator. your product or service description:
should also sound a bit like an expanded, in this case very expanded,
elevator pitch and that’s because it should answer the
basic questions of, what is the product, what makes it unique, and where do you see it
going we do that by answering the basic questions what, why, and how. Starting with the what. What is
your product? What are the function at what is the
functionality of your product what are the bells and whistles of
your product. and what about your product makes it unique, and
what about your product makes it exclusive to you. now functionality would be exclusive to
you if you own a patent or trademark on that product. And if you do you
absolutely want to include that here because that kinda raises the barrier
of entry for your competitors. Here’s what that might look like: the HBBM mousetrap is a first-of-its-kind luxury mousetrap. each trap comes
tastefully furnished with Farmery Barn furniture, including a mini-flat screen
TV and a fully stocked bar. the interior
cage is enveloped in a patent-pending padding blah blah blah. now your description is
going to be much longer than this. what I’m trying
to do is cut is condense it down to show you the few key points. what i’m saying
is look, here’s what makes us different and
unique as far as functionality in the industry of mousetraps. and that’s that we come fully furnished,
we have a mini-TV, we will fully stocked bar and what can be better than a fully stocked bar? we have padded walls
and, even better, our padding is exclusive to us. It’s
patent pending. follow the What with the Why this is where your entrepreneur may
stumble. they made very clearly see one Why, and that’s why they’ve launched the company. but, usually there’s more than one function to a product, and there’s
definitely going to be more than one benefits to a product. that what you’re answering with the Why: what’s the benefit what’s?What
problem is this function our products solving
what still needs state at the consumer that you’re addressing
you don’t need to go too deep into the consumer here, because you’re going to do
that and marketing section later. here’s this might look like: the
high-end amenities provided by our mouse trap helps both the socialite and social climbing rodent adjust more
quickly to captivity. by emulating a familiar environment, HBBM mousetrap is able to relax and calm the rodent until it can be extracted, making for a
less bitter mouse and a more enjoyable feline dining experience. Ick. But again what I’m saying, in a
condensed form here, is these functions: furniture, and TV, fully stocked bar, are beneficial to our consumer, and what
fullly-stocked bar would not be beneficial, because it relaxes our mouse. and when the mouse is relaxed our end consumer, our ultimate consumer, has a more enjoyable dining experience. Again, ick. After the why you’re gonna answer the How. How are
making this happen? what are your manufacturing details?
what’s your secret sauce behind the development of this product?
What’s your development cycle? now development cycle, if your launching an
actual product could be at the time it takes you ideation to
being on shelf. if you’re a service, it might be from lead
generation to closing the sale. and then what are your future
development goals with this product? is this always going to be a single mousetrap?are you gonna have mousetrap condos? are you going to have a mousetrap City? where you taking this mousetrap?
that’s your How. really that’s all you need to address in your
business description what why and how. however I’m not
suggesting we should be a three paragraph section. this section probably
should have should meat behind it. How much meat, is up to you. a few the
other things that people include sometimes to beef up the section are product
specifications, you could include that or you can put
that in Appendix at the end. some people like to see the product
financials in this section. now, obviously, we’re going to cover
company financials and product financials in the finance section, but you may want to include your pricing
structure and your margin analysis here. other people like to take a look at a
competitive landscape in the product description section. we’re going to look at competitors in the marketing section but if you want to look at competitors here, I recommend you do that in a benefit
analysis. use whatever type chart you like to
use, and landscape out maybe two of your your key benefits this your competitors in there, and see
where you fall in that landscape. hopefully you fall all by yourself in one one area of that
competitive landscape. and really that’s it. That’s all you need to write
out for your for your product or service description.
our next video will be on marketing strategy. thanks for
checking out the Working for Wonka how to write a business plan series. for
more information on business plans or on Working for Wonka check out
thanks again, and I look forward to helping you survive the entrepreneur boss

Comments (5)

  1. Thanks so much!! Just fixed it!

  2. short n sweet.. very helpful. Thanks 🙂

  3. very Thanks

  4. Quite easy to understand.

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