Here are the points you want to write up in the Products and Services section of your business plan:
To give others a clear understanding of the value your product or service provides, read about 11 important things to include in this section of your plan.
This is the part of your business plan where you will describe the specific products and services you’re going to offer. You’ll fully explain the concept for your business, along with all aspects of purchasing, manufacturing, packaging, and distribution. You’ll go over suppliers, costs, and how what you’re offering fits into the current market and stacks up against your competitors.
Do you envision future products or services as an extension of the business once it’s successfully launched?
Accreditations/Intellectual Property
How will you fill orders or deliver the service? Will you manufacture items yourself or outsource to someone else? Who will handle distribution, and how?
What makes this product or service unique or better than what’s already available in the market? Why would someone choose to buy your product or do business with you over someone else?
Have you had the product tested or certified? Gotten approvals from industry experts? Did you trademark, copyright, or patent your product? These can add substance and credibility, so be sure to mention them.
Starting a business can feel overwhelming, so take advantage of the tools and articles available to you. Read more about how LivePlan can assist you in writing your business plan.
In contrast, a consulting business may not have many startup costs. You may be able to simply work from home and offer your services online, avoiding the need for any physical overhead costs.
Your Profit and Loss statement will show your sales and expenses so that you can calculate your predicted profits.
Often, service businesses have fairly low cost of goods sold. This is how much it costs you in parts, products, or other tangible items to make a sale. Most service businesses have low costs to deliver the service and therefore have fairly high-profit margins. Software-as-a-service businesses are a perfect example of this because the incremental cost of a new customer is so low.
Noah Parsons
Your executive summary should describe the services that you are offering, who your target market is, and provide a snapshot of your sales goals and profit projections for the coming year. If you’re raising money to launch your business, be sure to include how much money you need to get the business launched.
A business plan helps you outline your business strategy. Knowing your strategy before you start helps you focus on building your business the right way from the beginning. Figuring out your strategy while you’re trying to build your business is somewhat like building an airplane while you’re headed down the runway. It’s potentially possible but very difficult to do.
Although you may have a good idea in your head for the services you’ll be offering, it’s important to write down exactly what you plan to offer to your customers and what you plan to charge. Especially for service businesses where you may be selling your time, it can be tempting to take on any job. That can lead to distractions and lead you away from your core business.
Your idea is surprisingly not the most important part of your business. It’s actually the people that build the business and run it that are the most important. Even the best idea that’s poorly executed is likely to fail, so it’s critical that you assemble the right people to make your business a success.
If not, then you should definitely consider hiring someone to help you develop the concept, research the market and competition, construct realistic financial projections, and help you explore some of the risks involved. Furthermore, any business plan consultant worth his or her salt will be able to provide some guidance in setting up your company, finding office or retail space, etc. Generally, the consultant will refer you to trusted experts in each sub-specialty (legal, real estate, accounting, insurance, etc.), or at least steer you in the right direction.
"You've got to be careful if you don't know where you're going 'cause you might not get there."
The same holds in reverse. If you withhold information from the consultant, don’t return phone calls, or play some other sort of game, then you are wasting everybody’s time and your money.
If in the end you decide you need some professional help, then you should consider a different set of questions.
Which is more precious to you: your money or your time?
"The innovation point is the pivotal moment when talented and motivated people seek the opportunity to act on their ideas and dreams."
- Do they have a credible website?
- Are they incorporated?
- Do they do this for a living, or is it just a hobby?
- Do they have satisfied clients and will they refer you to these clients?
- Do they understand your business?
- If the answers to all of these questions are “yes”, then you might be in luck.
If your business plan involves new or complicated technology, unusual or multiple revenue streams, or requires significant investment capital, you should expect fees at the higher end of this scale. We often have clients come to us claiming their plan is “simple”. Once we start digging into the details, we find things are a little more complicated than they thought. A good consultant will have enough experience to figure out a way through the complexity and identify solutions.
Blue Mountain Cycle Rentals will offer road and mountain bike rentals in a strategic location directly adjacent to an entrance to the George Washington National Forest. Our primary strategy is to develop Blue Mountain Cycle Rentals as the most convenient and cost-effective rental alternative for the thousands of visitors who flock to the area each year.
Blue Mountain Cycle Rentals will have clear advantages over its primary competitors, the bike shops located in Harrisonburg, VA:
You could certainly include more detail in each section
Later, when we add new equipment sales to our operation, we will face competition from online retailers. We will compete with new equipment retailers through personalized service and targeted marketing to our existing customer base, especially through online initiatives.
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Think about what products and services you will provide, how you will provide those items, what you need to have in order to provide those items, exactly who will provide those items, and most important, whom you will provide those items to.
Then work to accomplish your secondary objective by focusing on your readers. Even though you may be creating a business plan solely for your own purposes, at some point you may decide to seek financing or to bring on other investors, so make sure your Summary meets their needs as well. Work hard to set the stage for the rest of the plan. Let your excitement for your idea and your business shine through.
The market potential inherent in those visitors is substantial. According to third-party research data, approximately 30 percent of all cyclists would rather rent than transport their own bicycles, especially those who are visiting the area for reasons other than cycling.
The same holds in reverse. If you withhold information from the consultant, don’t return phone calls, or play some other sort of game, then you are wasting everybody’s time and your money.
If you are just toying with an idea, or have not invested much time in research and planning, you may not be ready to think about a business plan. If you aren’t committed to your business idea, you will just be wasting everyone’s time — and your own money — by hiring a consultant at this stage.
"There can be no talk of when until a feasibility study is completed."
For instance, suppose you have a strong background in sales and technology, but have little expertise in marketing and finance. Then you should find a consultant who excels in marketing and finance. Of course they still need to understand the business, but if you can focus on what you do best and have them fill in the gaps, you will save yourself some money and also end up with a much stronger business plan than if you did everything yourself.
What is the market potential for your business idea, and how much of that market do you want to capture?
The key is to figure out what you know, and what you are good at. Then have a consultant help fill in the gaps.
On the other hand, if you are fully employed, or have significant funds, you may be in the enviable situation of having more money than time. In this case, you should consider hiring a consultant to guide you through the business planning process, and maybe even write the entire business plan for you. However, in order to get the most out of the consulting engagement, you need to be involved throughout the process, and understand everything in the plan — from the mission statement through the exit strategy. Otherwise you’ll just end up with a very expensive paperweight.
If your business plan involves new or complicated technology, unusual or multiple revenue streams, or requires significant investment capital, you should expect fees at the higher end of this scale. We often have clients come to us claiming their plan is “simple”. Once we start digging into the details, we find things are a little more complicated than they thought. A good consultant will have enough experience to figure out a way through the complexity and identify solutions.