I welcome all small business owners (and would-be entrepreneurs) to my new series of posts under the category SMALL BUSINESS BOARD. I am publishing here interesting business tips, contents, materials, and links you may find useful in planning, managing, and expanding your business.
If you want to sell your products (or service) to your target audience – investors, lenders, customers, suppliers, and other stakeholders – write an interesting product description in your business plan.
What makes an interesting product description? How can it sell your product?
It starts with identifying your audience – to whom you are presenting your business plan. Are they investors or lenders interested in the long-term viability and profitability of the product you are producing or planning to produce? Or are they potential customers who want to know how your products can satisfy their needs effectively and at a lower cost?
A good product description usually includes the following:
- your target market
- what needs the product satisfies
- how it satisfies those needs
- who would use it
- how it is produced
- what its features are
- what benefits are derived from its use
- differentiation from other similar products, if any
- intended positioning in the market
You may briefly describe how your product is produced or manufactured.
Make descriptive statements of all its features. Simplify technical description to make it understandable by non-technical audience.
More important than your product’s features are the benefits that customers will get from it. For every feature cited, you have to highlight the equivalent benefits to its users. Point out why such benefits are good for the intended users – what problems it solves or how it makes its users more productive. Benefits sell your product.
If you are presenting to investors or lenders, you may indicate why said benefits will eventually result in the long-term competitiveness and profitability of the product.
Product differentiation should highlight its unique features. Why is it different from past or existing products in the market? How would these unique characteristics give it an edge over competition?
Given the unique features and outstanding benefits of your product, describe how you would position it in the mind of your target audience. Is your product the best answer to their needs? Would your product generate long-term returns and cash flow for your investors and lenders? A convincing presentation of these would sell your product.
You may also mention if you have any proprietary rights on the product.
Provide your audience a glimpse of your proposed selling price. Your target customers would then have an idea of value-for-money offered by your product. You may present to your prospective investors and lenders your pricing strategy and the profit margin you expect to earn.
A well-crafted product description in your business plan will certainly sell your product to your target audience.
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NOTE: While I find selected third party contents, materials, and links shown above to be useful, visitors/viewers are advised to use their own discretion in determining its suitability for their respective businesses.