03: Product Description
TIME FOR COMPLETION: APPROXIMATELY 5-25 HOURS
The objective of the Product Description is to clearly explain what products or services your business will offer. The information provided in this section will become the basis of your Marketing Plan. You should never assume that your product will sell itself, include a comprehensive description of the product using specifics and detailed language. It should be written so that the reader can easily understand what the product is and what it does. The Product Description should also compare your product to other similar products on the market. This gives you the opportunity to clearly define what advantages your product has over the competition, as well as to address any weaknesses that you may need to improve upon.
What’s in It?
A Product Description contains an overview of your product or service, features, benefits, and advantages, as well as any product development activities or liability issues. The overview should paint a complete picture of the product by answering the following questions in detail:
- What is the product or service you are going to offer?
- What does this product or service do?
- How does the product or service perform its function?
If possible, add pictures, blueprints, and any other graphical descriptions of your product to make the explanation as clear as possible. Visual representation will enhance investors interpretation and understanding. By doing this while comparing with competing products, you should strive to make it clear why your product is superior to the competition. The Product Description should also take time to focus on the problem(s) that your product will solve and the benefits to potential customers. A complete description of your product, the problems it solves, and a comparison with competitors should all work to make a case as to why your product will be successful.
Why’s it Important?
This section of the business plan is your opportunity to completely hash out your product idea, down to the finest detail. In doing so, you should gain a complete understanding of your product. The information you learn from this section will help you improve your product and differentiate you from competitors.
By writing a cohesive Product Description that explains the details of the product, why it is needed, and how it has advantages over its competitors, you are making a strong case for why your product will succeed and be profitable. Without this information, investors have no way of knowing if you completely understand your product, or how you plan to compete with others, which makes for a very risky investment.