How to Describe the Product in a Business Plan
The reader of a business plan should come away with an understanding of what the company's product line is, what it does and how it functions. The same is true if the company offers a service. If pictures and other images contribute to this understanding of the product, the writers of the plan should use them. The business plan should tell about problems the product solves, the needs it meets and the benefits it gives to consumers. The plan should also address any liability issues associated with the product.
Explain what the product does, how it works, and how it can be put to commercial or consumer use.
Write a description of the product's physical characteristics, including colors, finishes, sizes, specifications and ingredients. Use photographs, diagrams and other graphics to help the reader learn about the product.
Compare the product to those of competitors. Tell how the company's product is better than competing products. Discuss its potential in the marketplace. Include the results of any market trials, surveys or focus groups.
Describe the product's benefits to the customer. For example, if the product reduces wrinkles on the face, saves money or increases efficiency, explain in detail how it does each of these things. If there is a family of products, discuss the customer benefits of each one.
Explain any liability issues associated with the product, if applicable. If you have consulted with a lawyer about these issues, provide a summary of those discussions in the business plan.
Remember that the business plan often becomes a sales document for the company. When writing about the company's product, keep sales in mind.