CHAPTER 8
Plan Section 3: Products and Services Everyone lives by selling something. – ROBERT
LOUIS STEVENSON
and strategic focus described in Chapter 7 should flow nicely into the detailed description and analysis of the products (goods and/or services) of your company. If drafted properly, the portfolio of products will include “solutions” to the competitive opportunities previously identified in the beginning sections of the plan. An international business plan also should address key issues such as adaptation of domestic products to new foreign markets and building a product portfolio for foreign markets that suits the specific characteristics of those countries. Related issues also need to be discussed, particularly the company’s new product development efforts and intellectual property rights.
THE GENERAL DISCUSSION OF YOUR COMPANY’S BACKGROUND
Description of Products The business plan should include an extensive description of your company’s principal products in each industry sector where you are active. In addition, you should describe the status of any major new product or industry segment (e.g., whether such products are in the design or planning stage, whether prototypes exist or whether further engineering is necessary). From a formatting perspective, the discussion of existing and new products is usually broken into separate sections, particularly if development work on new products will be financed with funds from investors reviewing the business plan. The discussion of products in the business plan should extend beyond mere description. It should include an analysis of your company’s key strengths that will make the development, production and sale of products a profitable venture for prospective investors. For example, the discussion should identify any innovative features, potential applications and technological characteristics that may serve as a basis for a particular strategic advantage. This may require an examination of: ■ ■ ■
Revenue, cost and potential markets for the products Distribution channels for the products Assets and resources of the company that are, and will be, needed to support the products in the future If any weaknesses exist in your company’s products portfolio, such as difficulties in product development for exploitation in a particular market, you should include a description as part of the “risk factors” in the business plan. If a strategy has been developed to remedy such weaknesses, explain it.
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