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Products & Services Section in a Business Plan (+ Examples)

• September 4, 2024

In this blog post, we’ll guide you through writing the products and services section of your business plan. We’ll cover how to describe what you’re selling and why it’s important in your business plan.

Whether you’re launching a new startup or creating a business plan for an existing business, this section is crucial for showing the value you bring to customers. Let’s get started!

Why do we include them in a business plan?

The products and services section of a business plan is more than just a list of what a company sells; it’s a vital narrative that tells the story of the business’s core offerings and their significance to the market.

This section is paramount for readers (especially potential investors) to grasp the essence of what the business is about, the unique problems it solves, or the specific needs it addresses.

A meticulously crafted products and services segment does much more than describe offerings. Indeed, it lays the groundwork for comprehensive marketing strategies , informs operational planning, and financial projections.

Moreover, understanding the business’s offerings in depth enables stakeholders to envision the company’s value proposition and competitive edge.

Where should you include them?

In a business plan, the Products and Services section is typically included within the business overview section.

This allows you to first introduce the business model and what it offers to customers. Only after this you can provide more details of the products and services.

The Products and Services section should clearly detail what you are selling, highlight the unique value proposition . It should also ideally explain how it meets the needs of your target market if it isn’t obvious. T

What to include: 2 Examples

Begin with a clear, engaging description of each product or service you offer. For services, describe the process, customer experience, and outcome. For products, discuss the materials, technology, and any unique features.

Services example: a Cryotherapy business plan

Products example: a Brewery business plan

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Privacy overview.

How to describe your product and service in a business plan like a pro

It’s deceiving.

You’d think that this part of a business plan does exactly what it says on the tin–describe your product & service offering– right ?

And yes, you are partially right. 

But there’s a very specific way in which this description should be written to make sure that your business has the best chance of succeeding – in real life and under the eagle eye of a potential backer (if you’re preparing a business plan for external financing purposes).

Keep reading to find out the secret sauce to writing a winning product and service description:

WHAT is the Product and Service Description in a Business Plan?

This business plan section is also known as:

• Product and/or Service Overview

HOW Do You Write a Product and Service Description in a Business Plan?

So, what should a good product/service overview contain?

Here are some items to consider including into this section:

1.     Portfolio:

The range of products and/or services that a business offers to potential and current customers.

2.     Features and benefits (value proposition):

Explain what the product/service does and how it works.

3.     Problem and solution (value proposition cont.):

The problem(s) the product or service solves. Every business needs to solve a problem that its customers face. Explain what the problem is and how the product or service solves it.

4.     Innovation:

If the company is doing something new and different, explain why the world needs the innovation.

5.     Proprietary advantages:

Any proprietary features that contribute to a competitive advantage. This could include: intellectual property (e.g., copyright, trademark, patent filings, trade secret), exclusive agreements with suppliers or vendors, exclusive licenses (e.g., for a product, service or technology), company’s own research and development activities.

6.     Development stage:

Current stage of development of the product / service (e.g., idea, development, testing, prototype, already on the market).

7.     Product life-cycle:

Estimate the life span of the product or service.

Specify whether the product or service under consideration is a short-lived fad or has a long-term potential.

8.     Future:

Mention plans for changes and new additions to the current portfolio of products / services.

Describe any plans to move into new markets in the future (e.g., serving different types or sizes of customers, industries, geographic areas).

Make your best guess at when the business will be ready to address these markets and what it needs to do first to be ready.

9.     Limitations:

If applicable, explain any risks or limitations associated with the product (e.g., liability issues like guarantees or returns), along with any legal advice received regarding these issues.

10.  Visual aids:

Use photos, images, diagrams and other graphics to help the reader visualize and learn about the products / services.

If the business is tackling several distinct problems through different products / services, describe the solutions individually .

However, for a large line of products / services, there is no need to list each one, just identifying the general categories will suffice.

How LONG Is the Product and Service Chapter of a Business Plan?

This part of a business plan can be very short, just a couple of paragraphs, or it can spread over multiple pages, depending on how many products/services you offer and how much explanation they require.

If your products or services are particularly complex , technical , innovative , or proprietary , you will want to provide more information and spend considerable time describing them.

This is especially true if you are seeking funding for a new product or service, particularly one that is not immediately understandable to the business plan readers, and if potential funders are likely to be motivated by the specifics.

In any case, when describing a product or service, provide just enough information to paint a clear picture of what it is and does . A brief explanation of what you will be making, selling or doing is appropriate here.

Excessive detail makes this section cumbersome for a reader to wade through. Reserve detailed descriptions (e.g., production processes) for the Appendix.

In any case, it is a good idea to first summarize the value proposition of each product or service into a one short sentence, and only then continue with a more detailed description of the product or service.

If any images or graphics are available that would contribute to the understanding of the product or service, the writers of a business plan should use them.

Otherwise, include any product or service details , such as technical specifications, drawings, photos, patent documents and other support information, in the Appendix section of the business plan document.

TOP 4 TIPS for Writing a Product and Service Overview

Tip #1: features v. benefits.

Don’t just list the features of the product / service.

Instead, describe the specific benefits it will offer to customers – from their perspective.

Make it clear what your customers will gain through buying your product or service. Include information about the specific benefits of your product or service – from your customers’ perspective.

Features are not the same thing as benefits. And you need to understand both.

Confused? Let’s clarify:

What Is the Difference Between Features and Benefits?

Tip #2: Problem v. Solution

If at all possible, present the information in the Problem >> Solution format.

Start by describing the key problem that your customers have, immediately followed by the solution with which you will address this need for your target market.

Tip #3: Competitive Advantage

You should also comment on your ability to meet consumers’ key problems or unmet needs in a way that brings your product or service advantages over the competition.

For example:

• If you have a common business, such as a restaurant:

Explain why your customers need your particular restaurant. Do you offer lower prices? More convenient hours? A better location? A different concept, such as a vegan ice-cream pop up store? A specialty that is not otherwise available in your area, such as a Peruvian ceviche or Hungarian goulash?

• If your company is doing something new and innovative :

What is it about the existing solutions that is subpar? Maybe you are improving on a mediocre product category, such as creating better medical uniforms for healthcare workers (e.g., more flattering cut, trendy designs, sustainable materials). Or perhaps your new blockchain solution has the potential to entirely eliminate the middle-men in an entire industry.

Although the subject of competitive advantage regarding the business as a whole will be fully explored in the Market and Competitor Analysis part of a business plan, it is advisable to touch on it here also – in the context of the company’s products and service.

Tip #4: Validating the Problem and Solution

Speaking of which, when you are doing market research and analysis for your business plan, remember to validate the problem and solution your product or service is addressing.

There is a plethora of minor issues out there that people are perfectly fine with just tolerating. To build a solid business, though, you need a problem that a sufficient number of people are motivated to solve. That is, that they recognize it as a problem that’s worth paying you to solve. Even if they didn’t realize it was solvable until they were presented with your solution.

So, how do you get evidence that prospects are willing to pay for your solution?

Validation of Problem

Describe what you’ve done so far to confirm that the problem you are focused on is a real problem for your customers.

• Existing Business:

For an established business, this is probably just a matter of recapping your success in the marketplace. Your customers have already voted with their wallets.

• New Business:

For a startup, it is important to survey and have conversations with as many potential customers as possible about where they are having problems, how they solve them today, and validate that they are interested enough in addressing those problems to pay for a good solution.

Validation of Solution

Describe how you have tested your ideas with existing or potential customers to confirm that there is a good market for the products or services you plan to offer. Summarize the positive customer feedback or market traction that you have achieved with your solution so far.

For an established business, the answers probably lie in your paying customer base – their existence itself, combined with their repeat business, word-of-mouth referrals, follow-up customer surveys, and other indicators of customer satisfaction.

For a new business, you can start validating your solution immediately by trying it out with potential customers, even informally or at no charge, to get their opinion. If your product or service does not exist yet, talk to prospects about what you plan to offer and measure their feedback.

In summary, this section should answer the million dollar question:

What makes you think that people will buy, be satisfied with, and recommend your products or services?

Related Questions

What are products and services.

Products and services are items that businesses offer for sale to a market. While services are intangible, meaning that they do not exist in a physical form, products are of tangible nature, in other words – you can touch them.

What is a Product Line?

Product line is a group of related products that are all produced or sold by one entity and typically marketed under one brand name.

What is a Service Line?

Service line is a group of related services that are all produced or sold by one entity and typically marketed under one brand name.

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How to Write the Products and Services Section of Your Plan

1 min. read

Updated January 3, 2024

A complete business plan describes what you sell: either products, services, or both. This section needs to be more than a simple list of what you provide. It should detail the problem you’re solving, the value you provide, how it compares to the competition, and logistical information like pricing and distribution.

Learn how to go beyond simple product or service descriptions and create a compelling narrative around what you intend to offer.

What to include in the products and services section

What you add to this section fully depends on how much information you need to include in order to fully describe your products and services. While you may end up not including everything, it will benefit your business to work through these common topics.

A description of the problem and your solution

Successful businesses solve a problem for their customers. They make their lives easier or fill an unmet need and you need to identify and effectively describe a pain point that you are solving.

Optional information to strengthen your product and services section

While not required, there are additional pieces of information about your product and service offerings that you may want to include. These can be especially valuable for convincing investors that you have a business worth investing in.

Demonstrate business traction

Traction is an early indication that customers are eager to buy what you’re selling. Early sales, pre-orders, sign-ups, or contracts are just a few ways you can prove your idea has merit.

Understand the importance of intellectual property

Do you have patents, copyrights, or trademarks? It may be valuable to mention them here. They can be further proof that your idea has merit and the legal standing to be successful.

Why is the products and services section important?

The products and services section of your business plan provides the chance to describe why you’re in business. This will range from specific product or service details, such as pricing information, to more personally driven elements like your mission statement.

The point is that you need to paint a convincing picture, both technical and sentimental, of what you offer, how it works, and why it’s valuable. It needs to be a section that stands on its own and that is fully supported by the other sections of your plan.

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Tim Berry is the founder and chairman of Palo Alto Software , a co-founder of Borland International, and a recognized expert in business planning. He has an MBA from Stanford and degrees with honors from the University of Oregon and the University of Notre Dame. Today, Tim dedicates most of his time to blogging, teaching and evangelizing for business planning.

Table of Contents

• What to include
• Optional information
• Why is this section important?

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Write Products and Services Section of a Business Plan

Product and Service Description Workbook

• June 3, 2024

The products and services section of your business plan is much more than a list of products or services you will offer.

It includes a detailed description of the problem you solve, the pricing you charge, and the intellectual properties you own. Moreover, it also offers insight into your marketing and order fulfillment process.

Well, that’s not it.

There’s a lot more to the products and services in a business plan and we shall discuss that in this blog post. Also, we will share a few creative tips to make this section informative.

So, let’s get started.

What is the products and services section?

The products and services section of your business plan is where you mention and elaborate on your product range, product descriptions, pricing strategies, and other relevant details.

If you’re looking for partners or investors, this section plays a crucial role in persuading them. What you include in this section and how you write it can deeply impact whether or not your investors will seal the deal with you.

What to include in the products and services section?

The products and services section is the most important component when you write your business plan . 

It includes everything a prospective reader needs to understand the products you sell—its unique selling proposition (USP), pricing, marketing tactics, delivery, and order fulfillment process. In short, a complete detailed guide about your business’s product and services. 

Let’s explore this section in more detail as we dive further.

1. Description

In this part, include all the important details of your offerings. To write an accurate description, use the 5W2H(who, what, when, where, why, how and how much) method and answer these questions:

• Who can use this product? Mention the details of your ideal customer.
• What are the fundamental aspects of your product? These may include features, materials, ingredients, costs, dimensions, etc.
• When should someone use this product? Mention the occasion, or the season if it’s a seasonal product. You can also mention if it’s designed for a specific purpose.
• Where should your customers use the product? Is it used indoors or outdoors? Specify these details.
• Why should your customers use your product? Mention how the product fulfills their needs.
• How should they use your product? Mention if there are any important user instructions.
• How much should they use it? Mention the ideal frequency of usage that’s essential to follow while using your product.

2. Pricing procedure

A pricing strategy refers to the tactics you use to set a price for your products and services. While there are various strategies to choose from, conducting a price analysis will help you determine the pricing strategy that works best for your business model.

Follow this step-by-step procedure to conduct a pricing analysis:

Determine cost of goods sold (COGS)

To calculate the total cost of your products and services, add all the expenses that you incurred before the sale. This will include costs such as manufacturing, labor, warehousing, distributing, packaging and labeling, marketing, etc.

Also, determine your profit markup and add that to the COGS to set the final price for your products.

Collect data about the price preferences of your customers

Study your target customer’s opinions regarding pricing through surveys and questionnaires. This helps you know your customers’ price sensitivity.

Using this data, you can set an equilibrium price that’s low enough to sustain demand and high enough to secure profits.

Study your competitors’ prices

Perhaps the best way to tell whether a price works is by looking at the prices of your direct competitors.

Direct competitors are those who sell the same products as you do. Analyzing their pricing strategy helps you understand the price range for similar products in the current market.

With this information, you can modify your prices to set a competitive price.

Consider all the legal and ethical aspects

Setting a price that induces sales is essential.

However, ensure that you don’t set a price so low that it cuts off the competition. Such practice, often regarded as predatory pricing, is considered illegal in certain industries.

To avoid such troubles, be aware of the laws applicable to your business.

After conducting a pricing analysis, you can look at these pricing strategies to choose one for your business.

3. Product Comparison

Regardless of what you’re selling, someone in the market might already be selling it. Unlike direct competitors, indirect competitors sell similar products with slight variations.

Looking at your competitors can help you draw a comparison. To do that, examine their products and services and list down the similarities and differences.

Categorize this information into qualitative and quantitative aspects and organize it in tables. Finally, summarize it by including your advantages over competitors. Also, include how you will leverage them to balance your drawbacks.

4. Sales Literature

Sales literature refers to the promotional and informative materials you use to inform, clarify, and convince your customers to make buying decisions. These include brochures, catalogs, newsletters, price lists, customer testimonials, and case studies.

List out all the sales literature you use to market your products and services and briefly outline the information it conveys. Another integral part of your sales literature is your website; explain how it contributes to your sales.

Perhaps you run a blog to promote your products and inform your customers about new releases. Maybe you sell your products and services directly from your website; in that case, your sales literature material will go there.

5. Order management

From the moment a customer places an order to the delivery, followed by after-sales services—order processing constitutes everything.

Here, you explain how customers will order or buy the products and detail your delivery process.

For instance, for an online retail store, the order processing may include stages like:

• Order placement
• Order processing
• Picking inventory
• Product delivery
• Customer support

Depending on your offerings, your order processing workflow can have several stages. Describe each step and provide elaborate details about the execution.

6. Delivery Requirements

If the delivery or creation of your products and services needs any resources, mention them here. These can include equipment, vehicles, technology, and software.

For instance, a cafe owner will need kitchen equipment and IT solutions to run and provide its services. Mention these things in this part of the products and services section.

To cite another example, a consumer electronics company needs an IT infrastructure and production facility to create its products. For delivery, it needs vehicles and an online portal for customers to place and receive orders. All these are mentioned here.

7. Intellectual Properties

Mention all the Intellectual Property (IP) documents that are related to your products and services. These include trademarks, seller permits, patents, other licenses, etc.

Here you can also include any legal issues you’re currently facing and explain how you’re dealing with them.

Further, mention the issues that might occur in the future and the counteractive measures you will take to prevent them. These include adding safety labels, and disclaimers, opting for insurance policies, etc.

8. Future Offerings

This is a chance to impress your investors or partners by briefing them about your future products or services.

If your future products are an extension of the current products, offer an outline of the improvements you will make and clarify if the products are under development or ready for launch.

You can alter the products and services section as you wish to fit your product ideas the best. However, we have some practical tips that can help you make this section enriching.

6 Tips on Writing a Good Products and Services Section

Bear these tips for the business plans products and services section in mind when you start writing. Remember, this is just a list. You can always find other little tactics most unique to your product, service or industry.

1. Opt for a customer-centric approach

Your goal is to cater to the needs of your customers through your products or services. Hence, write as if you’re talking to your customers and directly addressing their issues. Point out how your product will make their lives better and easier.

2. Keep it simple

Clearly represent the information. Use bullet points and lists to convey your message. You can also use tables and charts to display product comparisons, strengths, etc.

3. Ditch buzzwords and industrial jargon

Everyone who reads your business plan may not understand the industrial jargon and buzzwords. Therefore, it’s best to skip the complicated lingo and use layman’s terms.

4. Specify market pain points

Elaborate on the problems your target audience is facing. You can gather this data by conducting a market analysis. Mention the various pain points and the features of your product that address them. Consider citing examples and relevant statistics to display how your product solves a customer problem.

5. Emphasize your USP

Highlight the benefits and the unique features of your products and services. Mention the things you do differently than your competitors and how you offer more value in comparison.

6. Flaunt your achievements

Make sure to show off the business milestones you’ve achieved such as awards, news articles, customer reviews, etc. You can also include your past sales numbers, your customer base, and the projects you fulfilled. These instill trust and help potential investors, clients, and partners to make decisions.

Persuade interest with a product and service section

Your products and services are the lifeblood of your business. Its accurate representation in a business plan is essential to instill investors’ faith in your ability to achieve growth and secure funding.

Ensure that this section communicates the value of your product offerings and highlights your strategies to market, sell, and deliver customer orders.

Now, kickstart writing this section. However, remember that you need to complete other sections of your business plan, as well.

Using a business planning app like Upmetrics could be a smart choice to streamline your entire plan writing process. Its AI business plan generator uses the information you offer to create detailed plans in less than just 10 minutes.

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Frequently Asked Questions

How much detail should i include about my products or services.

The answer depends on the purpose and type of business plan you intend to write. While this section in a comprehensive traditional plan includes details about products, it also includes an in-depth detailing about how you plan to market, sell, and deliver your orders. However, this much detailing is not essential if you are writing a lean plan.

What are the key components of a products and services business plan?

Here are the key essentials a products and services section should include:

• Product Description
• Pricing strategies
• Product USPs
• Marketing materials
• Intellectual properties
• Future offerings
• Order management
• Delivery Process

Do I need to include pricing information in the Products and Services section?

It’s ideally preferable to add pricing information to the products section of a business plan. This will help prospective readers understand your pricing strategy and revenue potential. It can assist them in calculating your profit margins and assess the competitive position of your business.

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

Reach Your Goals with Accurate Planning

The products and services section of a business plan is a critical component that outlines what your company offers, how it meets customer needs , and what sets it apart from competitors. This section provides an opportunity to showcase the value and uniqueness of your offerings, helping investors and stakeholders understand the core of your business. In this article, we will explore how to write an effective products and services section in a business plan, providing valuable insights and tips to help you create a compelling and informative segment.

Key Takeaways

• Understand Your Target Audience: Tailor your descriptions and language to your specific target audience. Use terminology and explanations that resonate with them and highlight how your offerings meet their specific needs.
• Focus on Benefits, Not Just Features: While it’s important to outline the features of your products or services, it’s equally crucial to emphasize the benefits they bring to customers. Clearly communicate the value proposition and the positive impact on customers’ lives or businesses.
• Highlight Competitive Advantages: Identify and emphasize what sets your offerings apart from competitors. Whether it’s pricing, quality, convenience, customization, or any other aspect, highlight your strengths and differentiators.
• Be Clear and Concise: Use clear and concise language to ensure easy understanding. Avoid technical jargon or complex explanations that may confuse readers.
• Use Visuals: Incorporate visuals such as images, charts, or diagrams to enhance understanding and showcase your products or services visually.
• Include Relevant Legal Considerations: If applicable, discuss any patents, copyrights, or trademarks associated with your products or services, demonstrating the measures you have taken to protect your intellectual property.

Understanding the Importance of the Products and Services Section

The products and services section of your business plan plays a vital role in conveying the essence of your offerings. It helps potential investors, lenders, and partners understand what you offer, its benefits, and how it satisfies customer demands. This section serves as a platform to demonstrate your understanding of the market, highlight your competitive advantages, and differentiate your products or services from others in the industry. It should inspire confidence and showcase your ability to deliver value to your target audience.

Developing an authentic and compelling products and services section in your business plan is essential for effectively communicating the value and differentiation of your offerings. By following the steps and tips outlined in this article, you can create a standout section that captivates readers and instills confidence in your business.

Customer-Centric Approach:

When crafting the products and services section, it’s crucial to adopt a customer-centric approach. Understand your target audience and their pain points, desires, and preferences. This understanding will guide you in tailoring your offerings and messaging to address their specific needs effectively. Consider conducting market research, surveys, or focus groups to gather insights into customer preferences, which can inform the development and positioning of your products or services.

Clear Communication of Benefits:

While it’s important to describe the features of your offerings, it’s the benefits that truly resonate with customers. Clearly articulate how your products or services improve their lives, solve their problems, or fulfill their desires. Use language that is relatable and engaging , focusing on the outcomes and positive impact your offerings bring. Whether it’s saving time, increasing efficiency, enhancing productivity, or providing cost savings, highlight these benefits in a concise and compelling manner.

Addressing Objections and Concerns:

Anticipate potential objections or concerns that customers may have about your products or services. Address these directly in the products and services section  to instill confidence and overcome any hesitations. Whether it’s addressing quality, scalability, support, or any other concerns, provide reassurances and explanations that demonstrate your commitment to customer satisfaction.

Incorporating Testimonials and Case Studies:

To strengthen the credibility of your offerings, consider incorporating testimonials or case studies from satisfied customers. Real-life examples and success stories help build trust and provide social proof. Highlight the positive experiences and outcomes of customers who have benefited from your products or services, showcasing the value they have derived.

Competitive Analysis:

A comprehensive products and services section should include a competitive analysis. Identify your main competitors and analyze their offerings, strengths, weaknesses, and market positioning. Highlight how your products or services differentiate from the competition and offer a superior value proposition. This analysis demonstrates your market awareness and positions your business as a viable and compelling option in the industry.

Continuous Improvement:

Emphasize your commitment to continuous improvement in the products and services section. Discuss how you gather customer feedback, analyze market trends, and use these insights to enhance your offerings. This conveys that your business is adaptable and responsive to changing customer needs and preferences, further reinforcing your competitive advantage.

By expanding on these key points, you can create a products and services section that effectively communicates the value, benefits, and differentiation of your offerings. Remember to maintain a customer-centric focus, utilize clear and engaging language, address potential concerns, and incorporate evidence of customer satisfaction. A well-crafted products and services section will showcase your business’s understanding of the market and its ability to deliver exceptional value to customers.

Structuring the Products and Services Section

Start with an overview:.

Begin by providing a brief overview of your products or services. Clearly state what you offer and how it fulfills customer needs or solves their problems. Capture the attention of your readers with a compelling introduction.

Describe Your Offerings:

Provide a detailed description of each product or service you offer. Highlight their key features, functionalities, and specifications. Use clear and concise language, avoiding technical jargon that may confuse readers who are not familiar with your industry.

Explain the Benefits:

Clearly articulate the benefits and advantages your offerings provide to customers. Focus on how your products or services address pain points, enhance efficiency, save costs, improve outcomes, or bring unique value to the market.

Illustrate the Unique Selling Proposition (USP):

Differentiate your offerings by highlighting what sets them apart from competitors. Identify your USP, which could be a distinctive feature, superior quality, innovative technology, exceptional customer service, or any other factor that gives you a competitive edge.

Provide Supporting Evidence:

Back up your claims with evidence and data. Include testimonials from satisfied customers, case studies, market research findings, or any other relevant information that showcases the credibility and value of your products or services.

Discuss Product Development or Service Expansion:

If applicable, outline your plans for future product development or service expansion. This demonstrates your vision for growth and adaptation to evolving market needs.

Crafting an effective products and services section in your business plan is crucial for capturing the attention of investors, lenders, and stakeholders. It is an opportunity to showcase the value, benefits, and unique selling propositions of your offerings. By following the steps outlined in this article, you can create a compelling and informative products and services section that effectively communicates the essence of your business.

Remember to tailor your descriptions to your target audience, focusing on the benefits your offerings bring to customers. Highlight your competitive advantages and provide supporting evidence to back up your claims. Clear and concise language, along with visuals, can enhance understanding and engagement.

The products and services section is your chance to demonstrate your market understanding, differentiation, and value proposition. Use this section to paint a compelling picture of how your offerings meet customer needs and pave the way for success in your industry.

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How To Write the Products and Services of a Business Plan

Crucial to business plans designed to secure funding or partnerships, your products and services section needs to showcase the quality, value, and benefits your business offers.

It’s not just a list of what your business is going to produce or provide. Instead, it outlines what you make or do, why your market needs your products or services, how you will compete with other companies selling the same or similar products or services, and what you will charge.

What To Include In The Products and Services Section

When looking at how to write the Products and Services section of your plan, be sure to include:

• A description of the products or services you offer or plan to offer
• A pricing model for your products or service, including how you set your prices and how you will make a profit. Include a breakdown of your Costs of Goods (COG) and Costs of Services (COS), what your contingency plan is in the event of a shift in market conditions, changes to laws, or availability of supplies, and your markup strategy.
• A comparison of your competitors’ products or services against yours, including a survey of what your competitors charge for similar items, along with a discussion explaining your pricing strategy
• Any sales literature or marketing materials you will use, including your website’s role in your sales efforts.
• An outline of how your orders will be processed or fulfilled.
• Any needs required to create or deliver your products (for example, up-to-date computer equipment)
• Any intellectual property (trademarks) or legal issues needing to be addressed.
• Future product or services

How to Make The Products & Service Section Appealing

Ideally, this section should elicit excitement in your reader and entice them to fund your business or work with you.

Here are few ways to accomplish this when deciding how to write the Products and Services section of your business plan:

• Showcase why there is a need for your product or service. Doing so is especially important if you’re introducing a new concept or invention or introducing your product or service into a place where there is currently no market for it.
• Emphasize the features of your product or service. How does it differ from that of your competitors in terms of make, shape, form, or appearance? Or price point? Or the level of service? What makes it unique?
• Focus on benefits. Once you’ve identified what features make your product unique, it’s vital to show how those features provide value to consumers. Is your product cheaper? Is your service faster? You want to clearly indicate how your product or service will fix a problem or improve a client or customer’s life.
• Be clear and concise and talk in layman’s terms. Avoid getting bogged down in lengthy descriptions or unnecessary details. Use bullet points and numbered lists to highlight important information. Don’t assume that your potential funders, partners, or customers have the same level of knowledge. Instead, consider the reader doesn’t know as much as you do when explaining your offering. Stay away from acronyms, jargon, industry buzzwords, and aim to be customer-oriented. If you have to use acronyms or jargon, always provide a definition.
• “ Why are you the best person to provide your products and services?”
• “What education or experience do you have that makes you qualified to provide them?”

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Don’t forget to include any testimonials, awards, or accolades you’ve received as well as any patents, copyrights, or trademarks you own or have applications for. Have you had the product tested or certified? Gotten approvals from industry experts? Including these details adds credibility to your overall business plan.

• Identify any liability issues: A liability lawsuit can significantly change the landscape of your business. Even if you don’t foresee any liability issues, include a statement to that effect rather than not address it at all. If there is a liability issue, real or apparent, acknowledge it and describe how you’ll deal with it. Let the reader know you will take all necessary steps to protect your business, your products, and yourself from litigation.
• Be precise in your product or service descriptions. For example, you don’t want only to say, “I sell shoes.” You want instead to say, “I sell leather boots targeted at women aged 16 – 25 who buy online”. Wherever possible, also include pictures of your products.

Questions to Answer in Your Products & Services Section

• Are your products or services in development or existing and on the market?
• If they currently aren’t on the market, what is the timeline for bringing them to it? Do you have a prototype?
• What makes your product or service different? What are your competitive advantages? What are your competitive disadvantages, and how will you overcome them?
• Is your pricing an issue? Are your operating costs low enough to allow for a reasonable profit margin?
• Where are you acquiring your products? Do you manufacture them, or do you assemble them using third-party components? Do you purchase from suppliers or wholesalers? If demand increases, do you have a steady supply of products available?
• How are you going to sell your product or service? Will it be available online or in retail stores? Do you have any vendors lined up?

Once you’ve answered these questions, stop and reread the section. Ask yourself if you’ve tried to answer why a client would want your product or service. Consider whether your offering will make your customers’ lives better or more accretive.

Examine the need you are fulfilling or the problem you are solving. More importantly, does the section give the reader a clear understanding of why you’re in business, what you sell, and how you differ from your competitors?

After completing this exercise, if you’re still unsure or would like more support about how to write the Products and Services section of your business plan, we invite you to reach out to our team at Bsbcon.

We are available to help small-medium-sized enterprises worldwide tackle their most critical challenges and capture their most significant opportunities.  We make a point to understand new trends, digital options, and partnerships that help our clients today and tomorrow. Call us toll-free at 1(888) 880-1898, write [email protected] , or fill out our contact form here .

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How to Write the Products or Services Section

Learn about this essential part of a business plan

Alyssa Gregory is an entrepreneur, writer, and marketer with 20 years of experience in the business world. She is the founder of the Small Business Bonfire, a community for entrepreneurs, and has authored more than 2,500 articles for The Balance and other popular small business websites.

Describe and Compare

Price points, order fulfillment, tips for writing the products or services section.

The products or services section of your business plan should clearly describe what you are selling with an emphasis on the value you're providing to your customers or clients. Include an in-depth look at all of the elements related to what you are selling.

The section needs to explain exactly what you are selling and how it fits in the marketplace. It's easier to describe the value provided if you are the only business in the area selling the product or service in question, but it is likely competitors are doing something similar.

Provide information about your competitors' offerings, how they are similar to yours, and how they are different. It's possible your business has a slightly different take on the product or service or is targeting a slightly different audience. It's also possible what you are offering is almost identical to what your competitors are offering, but demand in the marketplace is high enough to support multiple businesses doing the same thing. Explain your situation.

In addition to describing the actual products or services, break down how much they will cost. Products may come in different sizes, quantities, or varieties that will impact price, and services might be more or less extensive depending on the price being charged.

Address what competitors are doing in this regard as well. Perhaps you are offering higher or lower quality for a different demographic, but be clear about the cost and who can afford it.

Explain what happens once someone purchases what you are selling. If it is a product, they might buy it from a retail store, have it delivered from your online shop, or perhaps they submit a custom order in advance and pick it up at a later date.

If you are offering a service, it might be something that involves clients coming to you, or you might go to them. Whatever the details, make sure the process is clear.

If special technology is involved, outline what it entails. This could be specific technology you need in order to provide your services, or it might be technology clients or customers need in order to take advantage of what you're selling.

For example, if signing up clients for a training seminar, you might need specific hardware and software for a presentation. Perhaps you are selling software that requires the latest version of a particular operating system. Be sure these details are provided.

Make your description of available products or services an effective part of your business plan by following these tips:

• Focus on the customer:  The purpose of the products or services section is to clearly express the benefits you're providing to your customers or clients. Focus on that goal by addressing how what you are selling benefits your customers. Show how it makes their lives better, easier, or more profitable.
• Get to the point:  State the value upfront, then elaborate throughout the rest of the section while providing supporting materials. For example, if the primary benefit of what you are offering is that it saves time, state as much right away. Follow this statement with details about how it saves time and data to support the claim.
• Keep It simple:  Assume the reader has little to no understanding of your industry and product or service. You're the expert in the industry, but the basics may not be as clear to those reading your business plan.
• Show what makes you unique:  While describing similar products and services that are already in existence, take some time in your description to express how your product or service stands out as something different.
• Include the fine print:  While the bulk of your products or services section should focus on the end result, you also should include information about your pricing and how you arrived at that price point.

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• How to Write a Great Business Plan: Products and Services

The fourth in a comprehensive series to help you craft the perfect business plan for your startup.

This article is part of a series on  how to write a great business plan .

In the Products and Services section of your business plan, you will clearly describe--yep--the products and services your business will provide.

Keep in mind that highly detailed or technical descriptions are not necessary and definitely not recommended. Use simple terms and avoid industry buzzwords so your readers can easily understand.

On the other hand, describing how the company's products and services will differ from the competition is critical. So is describing why your products and services are needed if no market currently exists. (For example, before there was Federal Express, overnight delivery was a niche business served by small companies. FedEx had to define the opportunity for a new, large-scale service and justify why customers needed--and would actually use --that service.)

Patents, copyrights, and trademarks you own or have applied for should also be listed in this section.

Depending on the nature of your business, your Products and Services section could be very long or relatively short. If your business is product-focused, you will want to spend more time describing those products.

If you plan to sell a commodity item and the key to your success lies in, say, competitive pricing, you probably don't need to provide significant product detail. Or if you plan to sell a commodity readily available in a variety of outlets, the key to your business may not be the commodity itself but your ability to market in a more cost-effective way than your competition.

But if you're creating a new product (or service), make sure you thoroughly explain the nature of the product, its uses, and its value, etc.--otherwise your readers will not have enough information to evaluate your business.

Key questions to answer:

• Are products or services in development or existing (and on the market)?
• What is the timeline for bringing new products and services to market?
• What makes your products or services different? Are there competitive advantages compared with offerings from other competitors? Are there competitive disadvantages you will need to overcome? (And if so, how?)
• Is price an issue? Will your operating costs be low enough to allow a reasonable profit margin?
• How will you acquire your products? Are you the manufacturer? Do you assemble products using components provided by others? Do you purchase products from suppliers or wholesalers? If your business takes off, is a steady supply of products available?

In the cycling rental business example we've been using, products and services could be a relatively simple section to complete or it could be fairly involved. It depends on the nature of the products the company plans to rent to customers.

If Blue Mountain Cycling Rentals plans to market itself as a provider of high-end bikes, describing those bikes--and the sources for those bikes--is important, since "high-end cycling rentals" is intended to be a market differentiation. If the company plans to be the low-cost provider, then describing specific brands of equipment is probably not necessary.

Also, keep in mind that if a supplier runs out of capacity--or goes out of business altogether--you may not have a sufficient supply to meet your demand. Plan to set up multiple vendor or supplier relationships, and describe those relationships fully. 

Remember, the primary goal of your business plan is to convince you that the business is viable--and to create a road map for you to follow.

The Products and Services section for our cycling rental business could start something like this:

Product Description

Blue Mountain Cycle Rentals will provide a comprehensive line of bicycles and cycling equipment for all ages and levels of ability. Since the typical customer seeks medium-quality equipment and excellent services at competitive prices, we will focus on providing brands like Trek bikes, Shimano footwear, and Giro helmets. These manufacturers have a widespread reputation as mid- to high-level quality, unlike equipment typically found in the rental market.

The following is a breakdown of anticipated rental price points, per day and per week:

Bicycle $30 $120

Helmet $6 $30

• Customers can extend the rental term online without visiting the store.
• A grace period of two hours will be applied to all rentals; customers who return equipment within that two-hour period will not be charged an additional fee.

Competition

Blue Mountain Cycle Rentals will have clear advantages over its primary competitors, the bike shops located in Harrisonburg, Virginia:

• Newer equipment inventory with higher perceived quality
• Price points 15 percent below the competition
• Online renewals offering greater convenience
• A liberal return grace period that will reinforce our reputation as a customer-friendly rental experience

Future Products

Expansion will allow us to move product offerings into new equipment sales. We will also explore maintenance and fitting services, leveraging our existing maintenance staff to provide value-added services at a premium price.

(And so on...)

When you draft your Products and Services section, think of your reader as a person who knows little to nothing about your business. Be clear and to the point.

Think of it this way: The Products and Services section answers the "what" question for your business. Make sure you fully understand the "what" factor; you may run the business, but your products and services are its lifeblood.

Now let's take a look at the next major section of your business plan: the Market Opportunities .

More in this series:

• How to Write a Great Business Plan: Key Concepts
• How to Write a Great Business Plan: the Executive Summary
• How to Write a Great Business Plan: Overview and Objectives
• How to Write a Great Business Plan: Market Opportunities
• How to Write a Great Business Plan: Sales and Marketing
• How to Write a Great Business Plan: Competitive Analysis
• How to Write a Great Business Plan: Operations
• How to Write a Great Business Plan: Management Team
• How to Write a Great Business Plan: Financial Analysis

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Business Plan Products and Services Section: How to Write Guide .

Sep 17, 2023 | Business Consulting , Business Growth , Business Plan , Business Strategy Development , Products and Services , Starting a Business , Strategy

How to Write the Business Plan Products and Services Section

The business plan products and services section provides a comprehensive overview of your business, including your business model, product and service offerings, target market, and sales forecast.

“You’ve got to start with the customer experience and work back toward the technology – not the other way around.” – Steve Jobs

In this, the fifth installment in our” Creating your business plan” article series, we will discuss the information you should include regarding your products and services, how they contribute to your unique value proposition, and what sets you apart from your peer group.

Most companies either sell a range of products or offer several services to their customers, sometimes both, especially as you grow and scale up your business operations.

This section of your business plan should excite potential investors or partners. Here are some tips to create a compelling products and services section.

The products and services section should not just list your business offers in your business plan. It should provide comprehensive information on the pricing of your products and services, how you intend to fulfill orders, and other relevant details that investors require to make funding decisions. Find out more below.

Why you need a products and services section in a business plan

The section on products and services in your business plan is the focal point of your entire plan. Although other areas are significant, this section is the core of your business and serves as the foundation for the rest of your plan.

Describe your b usiness plan p roduct or service offerings

Firstly, within this section of your business plan, you want to include a description of your products or services. These should be reasonably detailed to give your reader a strong understanding of how they fit into your overall business plan.

You should discuss the general categories under which your products or services fall and then describe the relevant characteristics of your offerings. It’s important to remember that, while offering a detailed review, you shouldn’t get too technical. It would help if you avoided buzzwords, acronyms, and dense industry jargon.

There’s a good chance that some of your readers won’t be familiar with these terms, and using them could confuse them. Instead, write for someone who doesn’t know anything about your business. That guarantees that your descriptions are clear and understandable.

Remember the following questions as you sculpt each entry’s product and service description.

• What is the current status of the product or service offering in the marketplace?
• Is the offering an existing product or service or one in development?
• How will you offer the product or services?
• What are the ideal price point and profit margins?
• What are your innovation plans for this product or service?

For the former, discuss how long it has been a part of your company, any significant historical developments, industry awards, or the use of technology or advanced sustainability elements that differentiate you.

For the pricing, you can list the product category or individual SKUs (items). If you use Point of Sale (POS) software, like Shopify , you can include information from the system.

• Item 1 = $4.99
• Item 2 = $7.99
• Item 3 = $15.95

If it’s a new product or service, give your business plan readers information about where it is in its development, what else is required to bring it to completion (and ready to sell), and when you expect to roll it out.

Develop strategic priorities for your business plan

Whether your offerings are currently in the market or under development, to remain competitive, you need a strategic roadmap plan to guide their continued innovation over time, offering customers thoughtful and innovative new solutions to delight and introduce them to your broader product and service offering.

Ideally, you would want to include an innovation roadmap for each product or service you offer customers.

For each overarching category, describe how this helps your customers articulate how your product offering or services fit into the marketplace and how you plan to develop it to stay ahead of your competitors.

Your strategy roadmap describes how you’ll remain competitive in the future, but you also need to discuss how your products and services are currently differentiated.

• What are the characteristics, design innovations, and features set your offering apart from the rest of the market?
• How do they fit in general, and where do they shine?
• Where do your prices fall relative to your competitors?
• Is price a distinguishing feature?
• Are you catering to value-conscious or price-sensitive consumers, or do you charge more than the competition because your products and services warrant it?

Affordability is a relative term. High-end products aren’t affordable to most people, but affordability isn’t generally a concern if your market strategy targets wealthy consumers.

You can also talk about product and service shortcomings if any exist. Describe how your three-to-five-year forward-focusing strategy and innovation plans will help to rectify the situation. Other than providing enrichment, this will demonstrate to your business plan readers that you’re open, transparent, honest, and proactive in seeking solutions.

Unique value proposition for your b usiness plan products and services section

Your value proposition is a declaration from you about the benefits your customers receive by using your service or the challenges they will overcome by using your product versus an alternative in the marketplace.

Discuss why your target market prefers or should prefer your offerings over the competition.

• What is your value proposition, and what does this mean for your customers?
• How does your product or service offering solve/ improve problems?
• What benefits do you provide that are lacking from other market contenders?
• What is the product and service difference that you selected for marketing purposes that will drive customer adoption?

Your value propositions should focus on your customer needs, and answering these questions will give your business plan readers a robust understanding of everything you offer and your future aspirations for business growth.

You may have different value propositions for each of the target core customer groups. As your business grows, you will likely have to revisit your value proposition for each product and service to safeguard your competitiveness and relevance in the marketplace.

Be strategic. You can’t leave change up to chance. You will need a strategy development process to oversee your decisions and focus your efforts. Otherwise, you run the risk of stagnation, ultimately impacting your business growth and cash flow.

Why is the b usiness plan products and services section important?

In the products and services section of your business plan, you can explain the purpose behind your business. This can include detailed information about your products or services, such as pricing, and more personal aspects like your mission statement.

The goal is to create a compelling and well-rounded description of what you offer, how it operates, and why it is beneficial. This section should be able to stand alone and be supported by the other areas of your plan.

For example, have a look at Bplans , US-SBA , or Upmetrics have some valuable insights/

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Table of Contents

How to make a business plan

How to make a good business plan: step-by-step guide.

A business plan is a strategic roadmap used to navigate the challenging journey of entrepreneurship. It's the foundation upon which you build a successful business.

A well-crafted business plan can help you define your vision, clarify your goals, and identify potential problems before they arise.

But where do you start? How do you create a business plan that sets you up for success?

This article will explore the step-by-step process of creating a comprehensive business plan.

What is a business plan?

A business plan is a formal document that outlines a business's objectives, strategies, and operational procedures. It typically includes the following information about a company:

Products or services

Target market

Competitors

Marketing and sales strategies

Financial plan

Management team

A business plan serves as a roadmap for a company's success and provides a blueprint for its growth and development. It helps entrepreneurs and business owners organize their ideas, evaluate the feasibility, and identify potential challenges and opportunities.

As well as serving as a guide for business owners, a business plan can attract investors and secure funding. It demonstrates the company's understanding of the market, its ability to generate revenue and profits, and its strategy for managing risks and achieving success.

Business plan vs. business model canvas

A business plan may seem similar to a business model canvas, but each document serves a different purpose.

A business model canvas is a high-level overview that helps entrepreneurs and business owners quickly test and iterate their ideas. It is often a one-page document that briefly outlines the following:

Key partnerships

Key activities

Key propositions

Customer relationships

Customer segments

Key resources

Cost structure

Revenue streams

On the other hand, a Business Plan Template provides a more in-depth analysis of a company's strategy and operations. It is typically a lengthy document and requires significant time and effort to develop.

A business model shouldn’t replace a business plan, and vice versa. Business owners should lay the foundations and visually capture the most important information with a Business Model Canvas Template . Because this is a fast and efficient way to communicate a business idea, a business model canvas is a good starting point before developing a more comprehensive business plan.

A business plan can aim to secure funding from investors or lenders, while a business model canvas communicates a business idea to potential customers or partners.

Why is a business plan important?

A business plan is crucial for any entrepreneur or business owner wanting to increase their chances of success.

Here are some of the many benefits of having a thorough business plan.

Helps to define the business goals and objectives

A business plan encourages you to think critically about your goals and objectives. Doing so lets you clearly understand what you want to achieve and how you plan to get there.

A well-defined set of goals, objectives, and key results also provides a sense of direction and purpose, which helps keep business owners focused and motivated.

Guides decision-making

A business plan requires you to consider different scenarios and potential problems that may arise in your business. This awareness allows you to devise strategies to deal with these issues and avoid pitfalls.

With a clear plan, entrepreneurs can make informed decisions aligning with their overall business goals and objectives. This helps reduce the risk of making costly mistakes and ensures they make decisions with long-term success in mind.

Attracts investors and secures funding

Investors and lenders often require a business plan before considering investing in your business. A document that outlines the company's goals, objectives, and financial forecasts can help instill confidence in potential investors and lenders.

A well-written business plan demonstrates that you have thoroughly thought through your business idea and have a solid plan for success.

Identifies potential challenges and risks

A business plan requires entrepreneurs to consider potential challenges and risks that could impact their business. For example:

Is there enough demand for my product or service?

Will I have enough capital to start my business?

Is the market oversaturated with too many competitors?

What will happen if my marketing strategy is ineffective?

By identifying these potential challenges, entrepreneurs can develop strategies to mitigate risks and overcome challenges. This can reduce the likelihood of costly mistakes and ensure the business is well-positioned to take on any challenges.

Provides a basis for measuring success

A business plan serves as a framework for measuring success by providing clear goals and financial projections . Entrepreneurs can regularly refer to the original business plan as a benchmark to measure progress. By comparing the current business position to initial forecasts, business owners can answer questions such as:

Are we where we want to be at this point?

Did we achieve our goals?

If not, why not, and what do we need to do?

After assessing whether the business is meeting its objectives or falling short, business owners can adjust their strategies as needed.

How to make a business plan step by step

The steps below will guide you through the process of creating a business plan and what key components you need to include.

1. Create an executive summary

Start with a brief overview of your entire plan. The executive summary should cover your business plan's main points and key takeaways.

Keep your executive summary concise and clear with the Executive Summary Template . The simple design helps readers understand the crux of your business plan without reading the entire document.

2. Write your company description

Provide a detailed explanation of your company. Include information on what your company does, the mission statement, and your vision for the future.

Provide additional background information on the history of your company, the founders, and any notable achievements or milestones.

3. Conduct a market analysis

Conduct an in-depth analysis of your industry, competitors, and target market. This is best done with a SWOT analysis to identify your strengths, weaknesses, opportunities, and threats. Next, identify your target market's needs, demographics, and behaviors.

Use the Competitive Analysis Template to brainstorm answers to simple questions like:

What does the current market look like?

Who are your competitors?

What are they offering?

What will give you a competitive advantage?

Who is your target market?

What are they looking for and why?

How will your product or service satisfy a need?

These questions should give you valuable insights into the current market and where your business stands.

4. Describe your products and services

Provide detailed information about your products and services. This includes pricing information, product features, and any unique selling points.

Use the Product/Market Fit Template to explain how your products meet the needs of your target market. Describe what sets them apart from the competition.

5. Design a marketing and sales strategy

Outline how you plan to promote and sell your products. Your marketing strategy and sales strategy should include information about your:

Pricing strategy

Advertising and promotional tactics

Sales channels

The Go to Market Strategy Template is a great way to visually map how you plan to launch your product or service in a new or existing market.

6. Determine budget and financial projections

Document detailed information on your business’ finances. Describe the current financial position of the company and how you expect the finances to play out.

Some details to include in this section are:

Startup costs

Revenue projections

Profit and loss statement

Funding you have received or plan to receive

Strategy for raising funds

7. Set the organization and management structure

Define how your company is structured and who will be responsible for each aspect of the business. Use the Business Organizational Chart Template to visually map the company’s teams, roles, and hierarchy.

As well as the organization and management structure, discuss the legal structure of your business. Clarify whether your business is a corporation, partnership, sole proprietorship, or LLC.

8. Make an action plan

At this point in your business plan, you’ve described what you’re aiming for. But how are you going to get there? The Action Plan Template describes the following steps to move your business plan forward. Outline the next steps you plan to take to bring your business plan to fruition.

Types of business plans

Several types of business plans cater to different purposes and stages of a company's lifecycle. Here are some of the most common types of business plans.

Startup business plan

A startup business plan is typically an entrepreneur's first business plan. This document helps entrepreneurs articulate their business idea when starting a new business.

Not sure how to make a business plan for a startup? It’s pretty similar to a regular business plan, except the primary purpose of a startup business plan is to convince investors to provide funding for the business. A startup business plan also outlines the potential target market, product/service offering, marketing plan, and financial projections.

Strategic business plan

A strategic business plan is a long-term plan that outlines a company's overall strategy, objectives, and tactics. This type of strategic plan focuses on the big picture and helps business owners set goals and priorities and measure progress.

The primary purpose of a strategic business plan is to provide direction and guidance to the company's management team and stakeholders. The plan typically covers a period of three to five years.

Operational business plan

An operational business plan is a detailed document that outlines the day-to-day operations of a business. It focuses on the specific activities and processes required to run the business, such as:

Organizational structure

Staffing plan

Production plan

Quality control

Inventory management

Supply chain

The primary purpose of an operational business plan is to ensure that the business runs efficiently and effectively. It helps business owners manage their resources, track their performance, and identify areas for improvement.

Growth-business plan

A growth-business plan is a strategic plan that outlines how a company plans to expand its business. It helps business owners identify new market opportunities and increase revenue and profitability. The primary purpose of a growth-business plan is to provide a roadmap for the company's expansion and growth.

The 3 Horizons of Growth Template is a great tool to identify new areas of growth. This framework categorizes growth opportunities into three categories: Horizon 1 (core business), Horizon 2 (emerging business), and Horizon 3 (potential business).

One-page business plan

A one-page business plan is a condensed version of a full business plan that focuses on the most critical aspects of a business. It’s a great tool for entrepreneurs who want to quickly communicate their business idea to potential investors, partners, or employees.

A one-page business plan typically includes sections such as business concept, value proposition, revenue streams, and cost structure.

Best practices for how to make a good business plan

Here are some additional tips for creating a business plan:

Use a template

A template can help you organize your thoughts and effectively communicate your business ideas and strategies. Starting with a template can also save you time and effort when formatting your plan.

Miro’s extensive library of customizable templates includes all the necessary sections for a comprehensive business plan. With our templates, you can confidently present your business plans to stakeholders and investors.

Be practical

Avoid overestimating revenue projections or underestimating expenses. Your business plan should be grounded in practical realities like your budget, resources, and capabilities.

Be specific

Provide as much detail as possible in your business plan. A specific plan is easier to execute because it provides clear guidance on what needs to be done and how. Without specific details, your plan may be too broad or vague, making it difficult to know where to start or how to measure success.

Be thorough with your research

Conduct thorough research to fully understand the market, your competitors, and your target audience . By conducting thorough research, you can identify potential risks and challenges your business may face and develop strategies to mitigate them.

Get input from others

It can be easy to become overly focused on your vision and ideas, leading to tunnel vision and a lack of objectivity. By seeking input from others, you can identify potential opportunities you may have overlooked.

Review and revise regularly

A business plan is a living document. You should update it regularly to reflect market, industry, and business changes. Set aside time for regular reviews and revisions to ensure your plan remains relevant and effective.

Create a winning business plan to chart your path to success

Starting or growing a business can be challenging, but it doesn't have to be. Whether you're a seasoned entrepreneur or just starting, a well-written business plan can make or break your business’ success.

The purpose of a business plan is more than just to secure funding and attract investors. It also serves as a roadmap for achieving your business goals and realizing your vision. With the right mindset, tools, and strategies, you can develop a visually appealing, persuasive business plan.

Ready to make an effective business plan that works for you? Check out our library of ready-made strategy and planning templates and chart your path to success.

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How to Write Products and Services Section of Business Plan

Business plan products and services section  gives details of your product or service, how it is different and if you have a reliable manufacturing or sourcing system for the product. 

Show competitive advantages of your product or service. Convince investors or lenders that you can outperform competition; you’ll likely get the funding you need. 

Use this article as a guide when writing the product and service section of your business plan.

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How do you write the business plan products and services section.

Your goal in writing the business plan products and services section should be to explain your offering in simple, layman’s terms. 

Anyone reading about your products or services should be able to understand:

• what you are offering
• what is the unique value you are offering
• how will you do quality assurance 
• How will you meet the increased demand?

The product service plan section should include the following.

Explain Your Products or Services

Explain your product or service in detail. Try to include a brief about all the aspects of your product or service that will improve the consumers’ lives or increase business efficiency. 

Show why your Product is Unique 

Talk about the distinctive features of your product. Show what competitors are offering and explain how your offer is unique and better. 

Emphasize the Benefits 

Your hopes of capturing a share of the market depend on the benefits your product or service provides. Describe the benefits in terms customers can relate to. 

For example, if you are offering the same features as the competitors but at a low price, highlight the low price.

Manufacturing, Sourcing, and Fulfillment 

Explain if you will manufacture your products or you’ll source. If you are going to source the product from a manufacturer, how will you select the manufacturer?

Also, briefly explain the product supply chain and fulfillment process. Potential lenders may want to know if your supply chain and fulfillment system can handle high demand. 

Be Short and Concise 

Keep to the point. The Product service section in a business plan is about introducing your offering with a fair amount of detail. However, don’t make it lengthy.

You will discuss your product or service in every section of the business plan one way or another.

Show your Expertise 

A product coming from an acknowledged expert gets more acceptance in the market. 

Show your education or experience with the offering. If your business has any patents, trademarks, or special permits, make sure you showcase them. That way, you can establish yourself as an authority. 

For a sole proprietor, you can include your experience or education. For example, when an athlete starts a fitness brand, it becomes a quick success. However, other similar businesses face struggles at the start. 

Explain in Simple Language 

Make a detailed plan of product service but explain everything in simple language. 

Every industry has its jargon and buzzwords. People familiar with your product can understand the technical details, but the lenders or investors may not know much about your industry.  

Here is a pro tip for this. When you have written the product or service description, ask a trusted friend or family member to read it and explain your product to you. That way, you can know if your product service part of the business plan is generally understandable. 

What is your Exclusive Advantage? 

Your exclusive advantage is what makes you stand out. You spotted your exclusive advantage when you developed your product or service offering. Explain that exclusive advantage here. 

If you think there is no exclusive advantage, see if you can lower your price or provide better after-sale support. Even if your exclusive advantage is indirectly related to your product, it can help you get ahead fast. 

Assume you are talking to the customer

When you walk into the customer’s shoes, you can understand their needs better. 

Assume you are talking to an actual customer and convincing them to buy from you. They know your competition and they know what they need. You will have to talk in layman’s terms without missing any important details. You will need to focus on your competitive advantage. 

You will write an excellent product or service section when you think you are explaining it to a potential customer.

Key Questions to Answer in the Business Plan Products and Services Section

• Do you have a ready product or an under-development product?
• When will you bring new products or services to the market?
• What is the unique advantage of your product or service?
• What are the competitive advantages of your product or service?
• Does your product or service have any competitive disadvantages?
• Are you bound to charge a price in a short range, or can you charge a different price with a better offer?
• Are your business operating costs reasonable?
• Will you manufacture your products or buy from a supplier? 
• Do you sub-contract the parts of your product to different manufacturers and assemble the product at your facility?
• Will you be able to keep a steady and reliable supply chain for your product when demand rises?

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In the products and services section, describe your offerings in detail, including their features, benefits, and uniqueness. Include information on pricing, any proprietary technology or intellectual property, and how your products or services meet customer needs.

Differentiate your products or services from competitors by highlighting their unique selling points, such as superior quality, innovative features, customizable options, or exceptional customer service. Explain how these differentiators give you a competitive advantage.

Yes, it’s important to outline your pricing strategy in the products and services section. Explain your pricing model, whether it’s based on cost-plus, value-based, or market-based pricing. Justify your pricing strategy by considering factors such as market demand, competitors’ pricing, and perceived value.

Demonstrate the market need for your products or services by providing market research and analysis. Include data on customer demographics, target market size, and any trends or consumer preferences that support the demand for your offerings.

Yes, you can mention future product or service expansion plans in the products and services section. Briefly outline your growth strategy, such as introducing new product lines, expanding into new markets, or offering additional services. However, focus primarily on your current offerings and their value proposition.

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How To Write A Business Plan (2024 Guide)

Updated: Apr 17, 2024, 11:59am

Table of Contents

Brainstorm an executive summary, create a company description, brainstorm your business goals, describe your services or products, conduct market research, create financial plans, bottom line, frequently asked questions.

Every business starts with a vision, which is distilled and communicated through a business plan. In addition to your high-level hopes and dreams, a strong business plan outlines short-term and long-term goals, budget and whatever else you might need to get started. In this guide, we’ll walk you through how to write a business plan that you can stick to and help guide your operations as you get started.

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Drafting the Summary

An executive summary is an extremely important first step in your business. You have to be able to put the basic facts of your business in an elevator pitch-style sentence to grab investors’ attention and keep their interest. This should communicate your business’s name, what the products or services you’re selling are and what marketplace you’re entering.

Ask for Help

When drafting the executive summary, you should have a few different options. Enlist a few thought partners to review your executive summary possibilities to determine which one is best.

After you have the executive summary in place, you can work on the company description, which contains more specific information. In the description, you’ll need to include your business’s registered name , your business address and any key employees involved in the business. 

The business description should also include the structure of your business, such as sole proprietorship , limited liability company (LLC) , partnership or corporation. This is the time to specify how much of an ownership stake everyone has in the company. Finally, include a section that outlines the history of the company and how it has evolved over time.

Wherever you are on the business journey, you return to your goals and assess where you are in meeting your in-progress targets and setting new goals to work toward.

Numbers-based Goals

Goals can cover a variety of sections of your business. Financial and profit goals are a given for when you’re establishing your business, but there are other goals to take into account as well with regard to brand awareness and growth. For example, you might want to hit a certain number of followers across social channels or raise your engagement rates.

Another goal could be to attract new investors or find grants if you’re a nonprofit business. If you’re looking to grow, you’ll want to set revenue targets to make that happen as well.

Intangible Goals

Goals unrelated to traceable numbers are important as well. These can include seeing your business’s advertisement reach the general public or receiving a terrific client review. These goals are important for the direction you take your business and the direction you want it to go in the future.

The business plan should have a section that explains the services or products that you’re offering. This is the part where you can also describe how they fit in the current market or are providing something necessary or entirely new. If you have any patents or trademarks, this is where you can include those too.

If you have any visual aids, they should be included here as well. This would also be a good place to include pricing strategy and explain your materials.

This is the part of the business plan where you can explain your expertise and different approach in greater depth. Show how what you’re offering is vital to the market and fills an important gap.

You can also situate your business in your industry and compare it to other ones and how you have a competitive advantage in the marketplace.

Other than financial goals, you want to have a budget and set your planned weekly, monthly and annual spending. There are several different costs to consider, such as operational costs.

Business Operations Costs

Rent for your business is the first big cost to factor into your budget. If your business is remote, the cost that replaces rent will be the software that maintains your virtual operations.

Marketing and sales costs should be next on your list. Devoting money to making sure people know about your business is as important as making sure it functions.

Other Costs

Although you can’t anticipate disasters, there are likely to be unanticipated costs that come up at some point in your business’s existence. It’s important to factor these possible costs into your financial plans so you’re not caught totally unaware.

Business plans are important for businesses of all sizes so that you can define where your business is and where you want it to go. Growing your business requires a vision, and giving yourself a roadmap in the form of a business plan will set you up for success.

How do I write a simple business plan?

When you’re working on a business plan, make sure you have as much information as possible so that you can simplify it to the most relevant information. A simple business plan still needs all of the parts included in this article, but you can be very clear and direct.

What are some common mistakes in a business plan?

The most common mistakes in a business plan are common writing issues like grammar errors or misspellings. It’s important to be clear in your sentence structure and proofread your business plan before sending it to any investors or partners.

What basic items should be included in a business plan?

When writing out a business plan, you want to make sure that you cover everything related to your concept for the business,  an analysis of the industry―including potential customers and an overview of the market for your goods or services―how you plan to execute your vision for the business, how you plan to grow the business if it becomes successful and all financial data around the business, including current cash on hand, potential investors and budget plans for the next few years.

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10 Examples Of Products And Services In Business Plan

Creating a business plan is crucial for defining a company’s vision, target market, and strategy for growth. A key part of this process is detailing the products and services the business will offer. This section provides clarity to investors, partners, and stakeholders about the value the business brings to the market and how it plans to meet consumer needs. Here are ten examples of products and services that can be included in a business plan.

Examples of Products in a Business Plan

1. retail goods.

Retail products are tangible items sold directly to consumers. Examples include:

Clothing Line : A collection of apparel designed for specific demographics such as children, adults, or fashion-forward millennials.

Consumer Electronics : Gadgets like headphones, smartwatches, or home automation devices.

Specialty Foods : Unique or gourmet food items like organic snacks, gluten-free desserts, or handmade chocolates.

2. Manufactured Goods

These are products produced on a large scale, usually in a factory, and sold to businesses or end consumers.

Furniture : Custom-designed home or office furniture.

Industrial Equipment : Machinery and tools used in construction or manufacturing sectors.

Automotive Parts : Components and accessories for vehicles, such as tires or custom modifications.

3. Digital Products

Digital products are non-physical goods that are distributed online.

eBooks and Online Courses : Informational content sold through digital platforms, such as language learning courses or self-help books.

Software Solutions : SaaS (Software as a Service) offerings like project management tools, CRM systems, or financial planning software.

Mobile Applications : Apps developed for specific purposes, such as fitness tracking, meditation, or productivity enhancement.

4. Customized Products

These are products tailored to meet the specific needs or preferences of customers.

Personalized Gifts : Items such as custom-made jewelry, monogrammed accessories, or tailored clothing.

Customized Home Decor : Artwork, furniture, or household items designed according to customer specifications.

On-Demand Printing : Customized printing services for items like t-shirts, mugs, and phone cases.

5. Promotional Products

These are branded items used to promote a business or event.

Merchandise : T-shirts, caps, and bags with company logos for events or giveaways.

Branded Stationery : Notebooks, pens, and planners used as marketing collateral.

Event Souvenirs : Unique keepsakes for corporate events, conferences, or charity functions.

Examples of Services in a Business Plan

6. consulting services.

Providing professional advice and expertise to help businesses improve their operations.

Business Strategy Consulting : Helping companies develop strategic plans, market analyses, and competitive positioning.

Financial Consulting : Assisting with budgeting, tax planning, investment strategies, and financial risk management.

Human Resources Consulting : Providing guidance on hiring, employee retention, organizational development, and workplace culture.

7. Customer Support Services

These services focus on assisting customers with issues related to the business’s products or services.

Call Center Support : Providing telephone-based customer service for troubleshooting, inquiries, and order processing.

Live Chat Support : Real-time assistance provided via the company’s website or app to enhance customer experience.

Technical Support : Offering help with product installation, usage, and maintenance, especially for tech-based products.

8. Marketing and Advertising Services

Services aimed at promoting a business, its products, or its services.

Digital Marketing : SEO, content marketing, social media management, and email campaigns designed to attract and engage customers.

Public Relations : Creating and managing a business’s public image, including press releases, media relations, and crisis management.

Event Marketing : Organizing promotional events, trade shows, and product launches to build brand awareness and generate sales leads.

9. Subscription Services

Recurring services that provide value to customers over time.

Monthly Subscription Boxes : Regular delivery of curated items, such as beauty products, gourmet foods, or books.

Content Subscription : Access to premium digital content, such as articles, videos, and podcasts behind a paywall.

Software Subscriptions : Recurring access to software services, including cloud storage, antivirus protection, or design tools.

10. Logistics and Delivery Services

These services manage the movement and delivery of products to customers.

Warehousing and Inventory Management : Storage solutions that include managing inventory levels, packaging, and dispatch.

Last-Mile Delivery : Ensuring timely delivery of products to the final customer, often through partnerships with courier companies.

Supply Chain Management : Overseeing and optimizing the end-to-end process of sourcing, production, and delivery.

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Establish Authority : Publishing well-written and informative content on a reputable platform helps build credibility and establishes the guest author as an authority in their niche.

Networking Opportunities : Contributing to Alpha Book Publisher can open doors to networking with other writers, industry professionals, and potential business partners.

Long-Term Benefits : Backlinks and quality content contribute to long-term growth in online visibility, driving sustained traffic and engagement over time.

Final Thoughts

Including a detailed description of products and services in a business plan is essential for communicating the value a company offers to its customers. By clearly outlining these elements, businesses can better position themselves to meet market needs and achieve growth objectives. Platforms like Alpha Book Publisher provide excellent opportunities for guest posts and backlinks, enhancing online presence and driving targeted traffic. This can be a strategic advantage for businesses and writers looking to expand their reach and establish themselves as industry leaders.

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Business Plan Section 4: Products and Services

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.

How do you write the Products and Services section of a business plan?

While your product may be technical, don’t get caught up in complicated industry jargon. Explain and describe what you’re offering in layman’s terms, so someone who isn’t familiar with your business will understand and be excited about it. It may be necessary to give some basic background if this is an area or industry people are unfamiliar with.

While you write up the Products and Services section of your business plan, keep your reader in mind. Things that you might take for granted or know inside-out might not be common knowledge to potential lenders or investors. As you write, avoid being too technical, assuming too much knowledge from your readers, and using buzzwords.

You don’t want to come off as condescending, but you do want to make sure everyone understands what you’re talking about. To see if you’ve succeeded, have some trusted people who aren’t in your industry proof-read this section for you, and ask them to explain your product or service in their own words, along with the benefits to using them.

Here are the points you want to write up in the Products and Services section of your business plan:

The Product or Service Description

What is your product and service, and how does it work? How does it benefit customers? How do you make it or how will you get it made?

Product Comparison

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?

Accreditations/Intellectual Property

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.

Where are you currently with this product or service? Is it in the idea stage or do you have a prototype? Have you produced some and are looking to expand? Have you started offering this service already or are you still in the planning stages ?

How much will you charge for the products or services you’re offering? Where does this fit in with what’s currently available?

Sales and Distribution Strategy

How will you sell it? Will you market it online or in retail stores? Have you lined up any vendors? How will you distribute it or deliver the service you’re providing?

Fulfillment

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?

Requirements

Will you need any special equipment or technology to provide your product or service?

Do you envision future products or services as an extension of the business once it’s successfully launched?

Photos or Brochures

It’s beneficial to include a visual representation of your offering. Photos or brochures would generally get put in the plan’s appendix, but you would refer to them in this section.

How Do You Stand Out?

Perhaps most importantly, emphasize how and why you are competitive. How do you stand out, and why does this business have such a terrific chance at succeeding? In talking about your product or service, always try to answer why a client would want it. How will your offering make your customers’ lives better or more profitable? What need are you fulfilling or what problem are you solving?

To sum up, the product and services section of your business plan gives the reader a clear understanding of why you’re in business, what you sell, how you compete with what’s already available, or how you fill a niche that no one else is meeting.

Next > Business Plan Section 5: Market Analysis

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Business Plan Example and Template

Learn how to create a business plan

What is a Business Plan?

A business plan is a document that contains the operational and financial plan of a business, and details how its objectives will be achieved. It serves as a road map for the business and can be used when pitching investors or financial institutions for debt or equity financing .

A business plan should follow a standard format and contain all the important business plan elements. Typically, it should present whatever information an investor or financial institution expects to see before providing financing to a business.

Contents of a Business Plan

A business plan should be structured in a way that it contains all the important information that investors are looking for. Here are the main sections of a business plan:

1. Title Page

The title page captures the legal information of the business, which includes the registered business name, physical address, phone number, email address, date, and the company logo.

2. Executive Summary

The executive summary is the most important section because it is the first section that investors and bankers see when they open the business plan. It provides a summary of the entire business plan. It should be written last to ensure that you don’t leave any details out. It must be short and to the point, and it should capture the reader’s attention. The executive summary should not exceed two pages.

3. Industry Overview

The industry overview section provides information about the specific industry that the business operates in. Some of the information provided in this section includes major competitors, industry trends, and estimated revenues. It also shows the company’s position in the industry and how it will compete in the market against other major players.

4. Market Analysis and Competition

The market analysis section details the target market for the company’s product offerings. This section confirms that the company understands the market and that it has already analyzed the existing market to determine that there is adequate demand to support its proposed business model.

Market analysis includes information about the target market’s demographics , geographical location, consumer behavior, and market needs. The company can present numbers and sources to give an overview of the target market size.

A business can choose to consolidate the market analysis and competition analysis into one section or present them as two separate sections.

5. Sales and Marketing Plan

The sales and marketing plan details how the company plans to sell its products to the target market. It attempts to present the business’s unique selling proposition and the channels it will use to sell its goods and services. It details the company’s advertising and promotion activities, pricing strategy, sales and distribution methods, and after-sales support.

6. Management Plan

The management plan provides an outline of the company’s legal structure, its management team, and internal and external human resource requirements. It should list the number of employees that will be needed and the remuneration to be paid to each of the employees.

Any external professionals, such as lawyers, valuers, architects, and consultants, that the company will need should also be included. If the company intends to use the business plan to source funding from investors, it should list the members of the executive team, as well as the members of the advisory board.

7. Operating Plan

The operating plan provides an overview of the company’s physical requirements, such as office space, machinery, labor, supplies, and inventory . For a business that requires custom warehouses and specialized equipment, the operating plan will be more detailed, as compared to, say, a home-based consulting business. If the business plan is for a manufacturing company, it will include information on raw material requirements and the supply chain.

8. Financial Plan

The financial plan is an important section that will often determine whether the business will obtain required financing from financial institutions, investors, or venture capitalists. It should demonstrate that the proposed business is viable and will return enough revenues to be able to meet its financial obligations. Some of the information contained in the financial plan includes a projected income statement , balance sheet, and cash flow.

9. Appendices and Exhibits

The appendices and exhibits part is the last section of a business plan. It includes any additional information that banks and investors may be interested in or that adds credibility to the business. Some of the information that may be included in the appendices section includes office/building plans, detailed market research , products/services offering information, marketing brochures, and credit histories of the promoters.

Business Plan Template

Here is a basic template that any business can use when developing its business plan:

Section 1: Executive Summary

• Present the company’s mission.
• Describe the company’s product and/or service offerings.
• Give a summary of the target market and its demographics.
• Summarize the industry competition and how the company will capture a share of the available market.
• Give a summary of the operational plan, such as inventory, office and labor, and equipment requirements.

Section 2: Industry Overview

• Describe the company’s position in the industry.
• Describe the existing competition and the major players in the industry.
• Provide information about the industry that the business will operate in, estimated revenues, industry trends, government influences, as well as the demographics of the target market.

Section 3: Market Analysis and Competition

• Define your target market, their needs, and their geographical location.
• Describe the size of the market, the units of the company’s products that potential customers may buy, and the market changes that may occur due to overall economic changes.
• Give an overview of the estimated sales volume vis-à-vis what competitors sell.
• Give a plan on how the company plans to combat the existing competition to gain and retain market share.

Section 4: Sales and Marketing Plan

• Describe the products that the company will offer for sale and its unique selling proposition.
• List the different advertising platforms that the business will use to get its message to customers.
• Describe how the business plans to price its products in a way that allows it to make a profit.
• Give details on how the company’s products will be distributed to the target market and the shipping method.

Section 5: Management Plan

• Describe the organizational structure of the company.
• List the owners of the company and their ownership percentages.
• List the key executives, their roles, and remuneration.
• List any internal and external professionals that the company plans to hire, and how they will be compensated.
• Include a list of the members of the advisory board, if available.

Section 6: Operating Plan

• Describe the location of the business, including office and warehouse requirements.
• Describe the labor requirement of the company. Outline the number of staff that the company needs, their roles, skills training needed, and employee tenures (full-time or part-time).
• Describe the manufacturing process, and the time it will take to produce one unit of a product.
• Describe the equipment and machinery requirements, and if the company will lease or purchase equipment and machinery, and the related costs that the company estimates it will incur.
• Provide a list of raw material requirements, how they will be sourced, and the main suppliers that will supply the required inputs.

Section 7: Financial Plan

• Describe the financial projections of the company, by including the projected income statement, projected cash flow statement, and the balance sheet projection.

Section 8: Appendices and Exhibits

• Quotes of building and machinery leases
• Proposed office and warehouse plan
• Market research and a summary of the target market
• Credit information of the owners
• List of product and/or services

Related Readings

Thank you for reading CFI’s guide to Business Plans. To keep learning and advancing your career, the following CFI resources will be helpful:

• Corporate Structure
• Three Financial Statements
• Business Model Canvas Examples
• See all management & strategy resources
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9 Business Plan Examples to Inspire Your Own (2024)

Need support creating your business plan? Check out these business plan examples for inspiration and guidance.

Any aspiring entrepreneur researching how to start a business will likely be advised to write a business plan. But few resources provide business plan examples to really guide you through writing one of your own.

Here are some real-world and illustrative business plan examples to help you craft your business plan .

Business plan format: 9 examples

The business plan examples in this article follow this template:

• Executive summary
• Company description
• Market analysis
• Products and services
• Marketing plan
• Logistics and operations plan
• Financial plan
• Customer segmentation

1. Executive summary

Your executive summary is a page that gives a high-level overview of the rest of your business plan. While it appears at the beginning, it’s easiest to write this section last, as there are details further in the report you’ll need to include here.

In this free business plan template , the executive summary is four paragraphs and takes a little over half a page. It clearly and efficiently communicates what the business does and what it plans to do, including its business model and target customers.

2. Company description

You might repurpose your company description elsewhere, like on your About page , social media profile pages, or other properties that require a boilerplate description of your small business.

Soap brand ORRIS has a blurb on its About page that could easily be repurposed for the company description section of its business plan.

You can also go more in-depth with your company overview and include the following sections, like in this business plan example for Paw Print Post:

Business structure

This section outlines how you registered your business —as an LLC , sole proprietorship, corporation, or other business type : “Paw Print Post will operate as a sole proprietorship run by the owner, Jane Matthews.”

Nature of the business

“Paw Print Post sells unique, one-of-a-kind digitally printed cards that are customized with a pet’s unique paw prints.”

“Paw Print Post operates primarily in the pet industry and sells goods that could also be categorized as part of the greeting card industry.”

Background information

“Jane Matthews, the founder of Paw Print Post, has a long history in the pet industry and working with animals, and was recently trained as a graphic designer. She’s combining those two loves to capture a niche in the market: unique greeting cards customized with a pet’s paw prints, without needing to resort to the traditional (and messy) options of casting your pet’s prints in plaster or using pet-safe ink to have them stamp their ’signature.’”

Business objectives

“Jane will have Paw Print Post ready to launch at the Big Important Pet Expo in Toronto to get the word out among industry players and consumers alike. After two years in business, Jane aims to drive $150,000 in annual revenue from the sale of Paw Print Post’s signature greeting cards and to have expanded into two new product categories.”

“Jane Matthews is the sole full-time employee of Paw Print Post but hires contractors as needed to support her workflow and fill gaps in her skill set. Notably, Paw Print Post has a standing contract for five hours a week of virtual assistant support with Virtual Assistants Pro.”

Your mission statement may also make an appearance here. Passionfruit shares its mission statement on its company website, and it would also work well in its example business plan.

3. Market analysis

The market analysis consists of research about supply and demand , your target demographics, industry trends, and the competitive landscape. You might run a SWOT analysis and include that in your business plan. 

Here’s an example SWOT analysis for an online tailored-shirt business:

You’ll also want to do a competitive analysis as part of the market research component of your business plan. This will tell you which businesses you’re up against and give you ideas on how to differentiate your brand. A broad competitive analysis might include:

• Target customers
• Unique value proposition , or what sets the products apart
• Sales pitch
• Price points for products
• Shipping policy

4. Products and services

This section of your business plan describes your offerings—which products and services do you sell to your customers? Here’s an example for Paw Print Post that explains its line of custom greeting cards, along with details on what makes its products unique.

5. Marketing plan

It’s always a good idea to develop a marketing plan before you launch your business. Your marketing plan shows how you’ll get the word out about your business, and it’s an essential component of your business plan as well.

The Paw Print Post focuses on four Ps: price, product, promotion, and place. However, you can take a different approach with your marketing plan. Maybe you can pull from your existing marketing strategy , or maybe you break it down by the different marketing channels. Whatever approach you take, your marketing plan should describe how you intend to promote your business and offerings to potential customers.

6. Logistics and operations plan

The Paw Print Post example considered suppliers, production, facilities, equipment, shipping and fulfillment, and inventory. This includes any raw materials needed to produce the products.

7. Financial plan

The financial plan provides a breakdown of sales, revenue, profit, expenses, and other relevant financial metrics related to funding and profiting from your business.

Ecommerce brand Nature’s Candy’s financial plan breaks down predicted revenue, expenses, and net profit in graphs.

It then dives deeper into the financials to include:

• Funding needs
• Projected profit-and-loss statement
• Projected balance sheet
• Projected cash-flow statement

You can use a financial plan spreadsheet to build your own financial statements, including income statement, balance sheet, and cash-flow statement.

8. Customer segmentation

Customer segmentation means dividing your target market into groups based on specific characteristics. These characteristics can be demographics, psychographics, behavior, or geography. Your business plan will provide detailed information on each segment, like its size and growth potential, so you can show why they are valuable to your business. 

Airsign , an eco-friendly vacuum cleaner company, faced the challenge of building a sustainable business model in the competitive home appliance market. They identified three key customer personas to target:

• Design-oriented urban dwellers
• Millennials moving to suburbs
• Older consumers seeking high-quality appliances

The company utilized Shopify’s customer segmentation tools to gain insights and take action to target them. Airsign created targeted segments for specific marketing initiatives.

Put your customer data to work with Shopify’s customer segmentation

Shopify’s built-in segmentation tools help you discover insights about your customers, build segments as targeted as your marketing plans with filters based on your customers’ demographic and behavioral data, and drive sales with timely and personalized emails.

9. Appendix

The appendix provides in-depth data, research, or documentation that supports the claims and projections made in the main business plan. It includes things like market research, finance, résumés, product specs, and legal documents. 

Readers can access detailed info in the appendix, but the main plan stays focused and easy to read. Here’s an example from a fictional clothing brand called Bloom:

Appendix: Bloom Business Plan

Types of business plans, and what to include for each

This lean business plan is meant to be high level and easy to understand at a glance. You’ll want to include all of the same sections in one-page business plan, but make sure they’re truncated and summarized:

• Executive summary: truncated
• Market analysis: summarized
• Products and services: summarized
• Marketing plan: summarized
• Logistics and operations plan: summarized
• Financials: summarized

A startup business plan is for a new business. Typically, these plans are developed and shared to secure funding . As such, there’s a bigger focus on the financials, as well as on other sections that determine viability of your business idea—market research, for example:

• Market analysis: in-depth
• Financials: in-depth

Your internal business plan is meant to keep your team on the same page and aligned toward the same goal:

A strategic, or growth, business plan is a big-picture, long-term look at your business. As such, the forecasts tend to look further into the future, and growth and revenue goals may be higher. Essentially, you want to use all the sections you would in a normal business plan and build upon each:

• Market analysis: comprehensive outlook
• Products and services: for launch and expansion
• Marketing plan: comprehensive outlook
• Logistics and operations plan: comprehensive outlook
• Financials: comprehensive outlook

Feasibility

Your feasibility business plan is sort of a pre-business plan—many refer to it as simply a feasibility study. This plan essentially lays the groundwork and validates that it’s worth the effort to make a full business plan for your idea. As such, it’s mostly centered around research:

Nonprofit business plans are used to attract donors, grants, and partnerships. They focus on what their mission is, how they measure success, and how they get funded. You’ll want to include the following sections in addition to a traditional business plan:

• Organization description
• Need statement
• Programs and services
• Fundraising plan
• Partnerships and collaborations
• Impact measurement

Set yourself up for success as a business owner

Building a good business plan serves as a roadmap you can use for your ecommerce business at launch and as you reach each of your business goals. Business plans create accountability for entrepreneurs and synergy among teams, regardless of your business model .

Kickstart your ecommerce business and set yourself up for success with an intentional business planning process—and with the sample business plans above to guide your own path.

Business plan examples FAQ

How do i write a simple business plan.

To write a simple business plan, begin with an executive summary that outlines your business and your plans. Follow this with sections detailing your company description, market analysis, organization and management structure, product or service, marketing and sales strategy, and financial projections. Each section should be concise and clearly illustrate your strategies and goals.

What is the best format to write a business plan?

The best business plan format presents your plan in a clear, organized manner, making it easier for potential investors to understand your business model and goals. Always begin with the executive summary and end with financial information or appendices for any additional data.

What are the 4 key elements of a business plan?

• Executive summary: A concise overview of the company’s mission, goals, target audience, and financial objectives.
• Business description: A description of the company’s purpose, operations, products and services, target markets, and competitive landscape.
• Market analysis: An analysis of the industry, market trends, potential customers, and competitors.
• Financial plan: A detailed description of the company’s financial forecasts and strategies.

What are the 3 main points of a business plan?

• Concept: Your concept should explain the purpose of your business and provide an overall summary of what you intend to accomplish.
• Contents: Your content should include details about the products and services you provide, your target market, and your competition.
• Cash flow: Your cash flow section should include information about your expected cash inflows and outflows, such as capital investments, operating costs, and revenue projections.

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What Are Product and Services Examples?

Product and services examples are descriptions of your company's offerings, and can be adapted to accommodate the audience you're trying to attract. 3 min read updated on September 19, 2022

Product and services examples are descriptions of your company's offerings, and can be adapted to accommodate the audience you're trying to attract and to help you reach goals you're pursuing. When described using your own terminology, your descriptions show how you view your company's customers and stakeholders. Focus on what you want your target audience to get from your product descriptions in order to get started on the creation phase.

Starting With the Business Plan

A description of your company's products and services goes in your business plan. This section of the plan shares information that includes a brief summary of each offering, facts about the cost of each unit, and data about any patents or copyrights you possess related to your product offerings. It's important to be able to clearly tell people about the products and services your business offers.

Keep Your Language Positive

You shouldn't assume people know a lot about your industry, even if you're in a popular field, and it's especially important to remember this when preparing product descriptions . Each industry includes many products and services that are uncommon. Avoid talking down to people, but keep industry terminology to a minimum to avoid sounding condescending when communicating with industry outsiders. Ask yourself or a peer if your product descriptions:

• Seem too technical
• Assume readers have an advanced knowledge about your industry
• Use too much industry terminology
• Describe the main purpose and benefit of the service or product

Also consider whether you are providing a point of reference people can use for comparison if it is new in the marketplace.

Clear and Concise

Consider asking other people to read and share their opinions on your product descriptions. This is one of the best ways to get feedback on your written descriptions, and it lets you see if people understand what you're saying well enough to repeat it back in their own words. Using layman's terms in your descriptions helps potential investors get a feel for your industry and where your company fits in it, even if they are otherwise unfamiliar with it.

Stakeholder Involvement

A clearly written business plan should be shared with key stakeholders. When you share this key planning document with employees, a well-written product and service description section helps everyone understand the purpose of your company.

While you wouldn't share your business plan with customers, they should see your product and service descriptions. When writing descriptions for customers to read, go beyond listing the features of your products and show them what benefits those features deliver to encourage them to buy from you.

Targeting Specific Market Segments

Segmenting your audience into smaller groups can help you improve product descriptions even more by focusing on specific needs of the segment. This approach does generate extra work for you, but it also makes your descriptions more effective by addressing the interests of the group. For things like clothing, you may want to focus on style, durability, or comfort depending on the needs and interests of the target market you're trying to reach.

Descriptions for Raising Capital

Bankers and investors want to know how much earning capability your products and services deliver when they review your business plan. The description of your products and service offering helps them determine if you'll be likely to earn a profit and repay your loans. Discuss your business model and the effect of each product or service on your net income. Include labor costs, material costs and how much you'll charge for each product or service. Also share information on your intended market, go in-depth on your earning potential, and cover specifications regarding proprietary processes you own.

Descriptions When Collaborating With Other Businesses

If you want to partner with another business, good descriptions of your offerings can help encourage them to join forces with you. You may also need accurate descriptions to entice retailers to purchase your wholesale offerings. Be sure to include the most useful features of your product or service, and add information about your return policy or how long someone can expect your offerings to last, especially if you're producing something perishable.

If you need help with examples of products and services, you can post your legal need on UpCounsel's marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.

Hire the top business lawyers and save up to 60% on legal fees

Content Approved by UpCounsel

• What Is a Product or Service Description?
• What is a Product Description
• Business Plan Offering Example
• Parts of Business Plan and Definition
• Service Business Plan
• Creating a Business Plan
• Do It Yourself Business Plan
• Business Plan Information
• Is a Service a Product? Everything You Need to Know
• What Is Service Product?

Understanding Financial Statements: Three Key Statements and Their Interconnected Harmony

The Psychology of Pricing: How to Influence Consumer Behavior

Mastering Your Finances: A Guide to Personal Finance Success

11 Business Models

Choosing the right business model is a critical step for any entrepreneur aiming to build a successful company. The business model not only defines how you deliver value to your customers but also how you capture value for your business. In this comprehensive guide, we'll explore 11 innovative business models that are shaping industries today. We'll delve into how they work, key considerations for implementation, potential revenue streams, and real-world examples.

1. Consumer Products

Overview: This model involves creating and selling physical or digital products directly to consumers. Companies may also offer subscription services to provide ongoing value.

Key Considerations:

Product Differentiation: Standing out in a crowded market through innovation, design, or branding.

Supply Chain Management: Ensuring efficient production and distribution.

Customer Loyalty: Building a strong brand to encourage repeat purchases.

Revenue Streams:

Sales of individual units (one-time purchases).

Subscription models for recurring revenue.

Bundling products with services.

Apple: Offers consumer electronics with a focus on design and user experience.

Tesla: Sells electric vehicles with innovative technology.

Amazon (Echo, Kindle): Provides devices that integrate with its services.

2. Online Marketplaces

Overview: Online marketplaces connect buyers and sellers, facilitating transactions in a virtual environment. They often succeed by reducing friction in markets that previously faced trust or accessibility issues.

Network Effect: Success depends on achieving a critical mass of buyers and sellers.

Trust and Safety: Implementing measures to ensure secure and reliable transactions.

Competitive Landscape: May require significant investment to stand out among other marketplaces.

Transaction fees or commissions on sales.

Listing fees for sellers.

Premium services for enhanced visibility.

Airbnb: Connects travelers with hosts offering accommodations.

Uber: Links riders with drivers for transportation services.

eBay: Facilitates auctions and sales between individuals and businesses.

3. Software as a Service (SaaS) - Vertical

Overview: Vertical SaaS focuses on delivering software solutions tailored to the specific needs of a particular industry or sector. By addressing unique pain points, these services optimize workflows, reduce errors, and drive efficiency.

Market Saturation: Established industries may already have dominant software providers.

Differentiation: It's crucial to offer unique features or better user experiences to stand out.

Customization vs. Scalability: Balancing bespoke solutions with the ability to scale without becoming a service-heavy business.

Subscription fees based on user seats or features accessed.

Procore: Construction management software streamlining project workflows.

Toast: Restaurant management platform integrating ordering, payroll, and analytics.

Mindbody: Provides management solutions for the wellness industry.

4. SaaS - Freemium

Overview: Freemium SaaS offers a basic version of a software product for free, with the option to upgrade to a paid version that includes additional features or benefits. The goal is to attract a wide user base and convert a portion into paying customers.

Feature Delineation: Deciding which features to offer for free and which to reserve for paid tiers is critical.

User Conversion: Requires strategies to encourage free users to upgrade.

Cost Management: Must balance the costs of supporting free users with revenue from paid users.

Subscription fees for premium features.

Advertising within the free version.

Slack: Offers free messaging with limits; paid plans unlock more features.

Dropbox: Provides free cloud storage with options for more space and features at a cost.

Zoom: Free video conferencing with time and participant limitations; paid plans remove these restrictions.

5. Infrastructure as a Service (IaaS)

Overview: IaaS companies provide essential computing resources like storage, networking, and processing power on a pay-as-you-go basis. They cater to businesses needing scalable and flexible IT infrastructure without the overhead of maintaining physical hardware.

Capital Intensive: Requires significant investment in data centers and technology infrastructure.

Technical Expertise: Necessitates a top-tier development team to ensure reliability and scalability.

Competitive Edge: Success often depends on being cost-effective and offering superior performance.

Metered billing based on usage (e.g., per hour of computing power, per gigabyte of storage).

Amazon Web Services (AWS): Provides a wide range of cloud services to businesses globally.

Twilio: Offers communication APIs for messaging, voice, and video.

Stripe: Delivers payment processing infrastructure for online businesses.

6. Social Networking Platforms

Overview: Social networks enable users to create profiles, share content, and interact with others. They can focus on broad connections or target specific interests and demographics.

User Engagement: Keeping users active and engaged is essential for longevity.

Content Moderation: Balancing freedom of expression with the need to prevent harmful content.

Regulatory Compliance: Navigating laws related to privacy, data protection, and online behavior.

Advertising targeted based on user data.

Premium features or subscriptions for enhanced experiences.

Facebook: Global platform for connecting and sharing with others.

Instagram: Visual content sharing focused on photos and videos.

LinkedIn: Professional networking site for career development and opportunities.

7. Business-to-Business (B2B) Services

Overview: B2B service companies offer specialized services to other businesses, such as consulting, marketing, or outsourcing complex tasks. They often provide expertise that companies lack internally.

Expertise and Reputation: Success relies on specialized knowledge and a strong track record.

Relationship Management: Building and maintaining client relationships is crucial.

Competition: Must continually innovate to stay ahead of competitors and disruptive technologies.

Project-based fees.

Retainer agreements for ongoing services.

McKinsey & Company: Global management consulting firm.

PwC (PricewaterhouseCoopers): Offers assurance, tax, and consulting services.

Accenture: Provides professional services in strategy, consulting, and digital transformation.

8. Entertainment Services

Overview: Entertainment services provide content designed to captivate audiences, including streaming media, music, gaming, and live events. Success often comes from delivering high-quality content that encourages repeat engagement.

Content Acquisition: Securing rights to popular content or producing original works.

Changing Consumer Preferences: Staying ahead of trends and adapting to new consumption habits.

Technological Advances: Embracing new technologies like virtual reality or interactive media.

Subscription fees for access to content libraries.

Pay-per-view or rental fees for individual titles.

Advertising in ad-supported models.

Netflix: Streaming service offering a vast array of movies and TV shows.

Spotify: Music streaming platform with free and premium tiers.

Disney+: Provides access to Disney's extensive content catalog.

9. Aggregator Platforms

Overview: Aggregator platforms compile information, reviews, or tutorials to attract a specific audience. They monetize by directing users to partner vendors or marketplaces, earning commissions or fees per transaction.

Content Quality: Must provide valuable and trustworthy information to retain users.

SEO Dependency: Reliant on search engine algorithms for traffic; changes can significantly impact visibility.

Competition: High competition requires strategies to differentiate and become the preferred destination.

Advertising revenue from displayed ads.

Affiliate commissions from referred sales.

Premium listings for vendors.

Zillow: Aggregates real estate listings and information.

TripAdvisor: Provides travel reviews and booking options.

Reddit: Hosts communities and discussions, monetizing through ads and premium features.

10. Developer Tools

Overview: Developer tools are specialized software solutions designed to assist developers in coding, testing, and deploying applications. This niche within SaaS targets a highly technical audience, often incorporating open-source elements.

High Expectations: Developers demand robust, efficient, and reliable tools.

Community Engagement: Active participation and contribution to developer communities are vital.

Open Source Norms: Offering open-source options can be essential to gain trust and adoption.

Freemium models with paid premium features.

Subscriptions for enterprise-level support or additional capabilities.

Usage-based billing for API calls or resources consumed.

GitHub: A platform for version control and collaboration with paid private repositories.

HashiCorp: Provides infrastructure automation tools with open-source and enterprise versions.

Hugging Face: Offers NLP tools and models with options for premium services.

11. Government Solutions

Overview: Businesses in this model provide specialized products or services to government agencies, including defense, law enforcement, and public administration sectors.

Complex Sales Cycles: Navigating government procurement processes requires patience and expertise.

Regulatory Compliance: Must adhere to strict regulations and security standards.

Relationship Building: Establishing credibility and trust is essential for long-term contracts.

Subscription-based services.

Project-based fees for specific initiatives.

Anduril Industries: Develops advanced defense technology solutions.

SpaceX: Contracts with government agencies for space exploration and satellite launches.

Understanding these diverse business models can help entrepreneurs identify the best approach for their startups. Whether you're leveraging open-source communities, providing specialized SaaS solutions, or creating the next big social network, aligning your business model with your product and target market is crucial for success.

At Plannit AI, we're committed to supporting entrepreneurs at every stage of their journey. Our AI-driven business planning tools can help you refine your business model, create professional plans, and connect with a community of like-minded individuals.

Need help choosing the right business model for your startup? Contact us or try our AI-powered business planning tool today!

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The Complete Guide to Crafting a Winning Product Launch Strategy

A successful product launch strategy can make all the difference between a product that thrives and one that struggles to get noticed. Whether you’re introducing a new product to the market or revamping an existing one, having a well-thought-out launch plan is key to creating buzz, reaching the right audience, and achieving your business goals.

In this guide, we’ll walk you through everything you need to know about crafting a winning product launch plan. From preparing your team and refining your messaging to choosing the right marketing channels, this step-by-step guide will help you ensure your product launch is smooth, impactful, and set up for long-term success.

What is a Product Launch Strategy?

A product launch strategy is a comprehensive plan that outlines the steps you’ll take to introduce a new product to the market. It’s more than just a marketing campaign — it’s a coordinated effort that involves your entire team, from product development to sales and customer support. The strategy defines your target audience, the messaging you’ll use to communicate your product’s value, and the specific goals you aim to achieve, such as sales targets or brand awareness.

A strong product launch strategy also covers the timing of your launch, ensuring that your product reaches the market when demand is high, and competition is manageable. It includes the selection of marketing channels like social media, email campaigns, PR efforts, and partnerships, making sure you reach your ideal customers. By carefully planning each step, you can build excitement, create a lasting first impression, and set your product up for long-term success.

Why is a Product Launch Strategy Important?

A product launch strategy is important because it helps you introduce your product in a way that grabs attention and builds excitement. Without a plan, even a great product can get lost in a crowded market. Here are some benefits of a product launch strategy that you need to know.

• Clear direction : A product launch strategy provides a roadmap, helping you stay organized and focused on your goals. It ensures that everyone on your team knows their role and what needs to be done.
• Targeted marketing : With a strategy in place, you can identify and reach the right audience. This means your marketing efforts are more likely to connect with potential customers who are interested in your product.
• Builds anticipation : A well-planned launch creates excitement and buzz around your product. This helps generate interest and can lead to higher sales when your product hits the market.
• Minimizes risks : A strategy helps you anticipate potential challenges and address them before they become bigger problems. This allows for a smoother launch and reduces the chances of unexpected issues.
• Improved coordination : A clear plan makes sure that different departments, like marketing, sales, and customer support, are working together seamlessly. This results in a more unified and successful launch.
• Better use of resources : A strategy ensures that your budget and time are used efficiently. By focusing on the most effective marketing channels and tactics, you can maximize the return on your investment.
• Long-term growth : A strong product launch sets the stage for future success. By starting off with a solid plan, you can build a loyal customer base, increase brand awareness, and create momentum for long-term growth.

Types of Product Launches

There are three types of product launches—soft, minimal, and full-scale— and companies can select the approach that best aligns with their product, goals, and market conditions. Each type has its benefits and is suited for different situations, allowing for a tailored strategy that can enhance the chances of success.

Soft launch

A soft launch is a strategy where a product is released to a limited audience before it becomes widely available. This approach allows companies to test the product in real-world conditions and gather valuable feedback.

• Purpose : The main goal is to identify any issues or bugs that need fixing before the full launch. By starting small, companies can make adjustments based on user experiences and feedback.
• Audience : This launch typically targets a specific group, which can include loyal customers, employees, or a particular geographic location. This helps create a controlled environment for testing.
• Benefits : A soft launch minimizes risk. Companies can understand how the product performs in the market without a large-scale commitment. It also allows them to build anticipation for the full launch, as customers may share their positive experiences with others.
• Example : A mobile app might be released in one country first, allowing developers to gather data on user engagement and fix any bugs before launching globally.

Minimal launch

A minimal launch, also known as a minimum viable product (MVP) launch, involves introducing a product with just the essential features needed to satisfy early adopters.

• Purpose : The aim is to get the product to market quickly while still providing enough value to users. This strategy allows companies to validate their idea without extensive development.
• Focus : In a minimal launch, the product is simplified, focusing on core functionalities that solve a specific problem. This means some features may be left out initially, with the plan to add them later based on user feedback.
• Benefits : Launching a minimal product can save time and resources. Companies can start generating revenue and learning from customer interactions early on. Feedback from users helps shape future updates and improvements.
• Example : A startup might release a basic version of a new software tool that includes only the most important features. As users provide feedback, the company can gradually enhance the tool with additional features that meet customer needs.

Full-scale launch

A full-scale launch is when a product is made available to the entire market with a comprehensive marketing campaign to support it.

• Purpose : The goal here is to maximize reach and impact, creating excitement and driving sales from day one. This approach is used when the product is fully developed and tested.
• Marketing efforts : A full-scale launch typically involves significant advertising, promotional events, and public relations efforts to create buzz. Companies may leverage social media, influencers, and traditional media to reach a wide audience.
• Benefits : A full-scale launch aims to generate strong initial sales and establish a product’s presence in the market. It also helps to build brand awareness and credibility.
• Example : A major tech company might announce a new smartphone with a big event, showcasing its features and capabilities. The launch would be supported by advertisements across various channels, aiming to attract customers right away.

Components of an Effective Product Launch Strategy

An effective product launch strategy involves several key components that work together to ensure your product enters the market successfully. Each part plays a crucial role in creating a seamless launch, generating excitement, and reaching your business goals.

• Market research : Understand the market and your competition. Knowing who your competitors are and what customers need will help you position your product effectively.
• Clear goals : Define what success looks like for your launch. Whether it’s hitting specific sales targets or building brand awareness, having clear, measurable goals will guide your efforts.
• Target audience identification : Pinpoint who your ideal customers are. By understanding their preferences, pain points, and behaviors, you can tailor your messaging to resonate with them.
• Strong value proposition : Clearly communicate what makes your product unique. Your value proposition should highlight the benefits of your product and why customers should choose it over alternatives.
• Pricing strategy : Set a price that reflects your product’s value while being competitive. This includes considering factors like production costs, market demand, and competitor pricing.
• Marketing plan : Develop a marketing strategy that outlines the channels you’ll use, such as social media, email campaigns, and paid ads, to promote your product and create buzz before the launch.
• Launch timeline : Create a detailed timeline for all tasks leading up to the launch, including key milestones and deadlines. This helps keep your team on track and ensures everything is ready on time.
• Sales and support preparation : Ensure your sales and customer support teams are fully trained on the product and ready to answer any questions. This ensures a smooth experience for customers once the product is launched.
• Post-launch plan : Have a strategy for ongoing marketing and customer engagement after the product is launched. This can include collecting feedback, running promotions, and continuously improving your product.

Product Launch Strategy vs Product Launch Plan

The terms “product launch strategy” and “product launch plan” are often used interchangeably, but they refer to different aspects of the launch process:

Product launch strategy : This is the big-picture approach. It focuses on the overall goals, target audience, positioning, and the marketing channels you’ll use to introduce your product to the market. A strategy outlines why and how you’ll launch, ensuring that your product stands out, meets customer needs, and achieves business objectives. It’s more about the vision and direction of the launch.

Product launch plan : This is the detailed execution of the strategy. It involves the specific steps and actions you’ll take to bring your product to market. A plan includes timelines, task assignments, budgets, and deadlines. It’s the tactical part of the process, ensuring every aspect of the launch, from pre-launch activities to post-launch follow-ups, is carried out smoothly.

In short, the strategy defines what you aim to achieve and how you’ll position your product, while the plan is about when and what steps to take to make the launch happen successfully.

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How to Create a Product Launch Strategy

Creating a product launch strategy is about making sure you have a clear, well-thought-out approach to introducing your product to the market. Here’s how you can create an effective product launch strategy, step by step:

Step 1: Define your product goals

The first step in a product launch strategy is to define your product goals. This means clearly deciding what you want to achieve with your product launch. These goals give you a sense of direction and help you measure success. For example, you might aim to:

• Reach a specific sales number within the first three months.
• Increase brand awareness by growing your online following or getting media attention.
• Build a loyal customer base by gaining new customers or retaining existing ones.

Your goals should be specific and measurable so you can track your progress. Defining clear goals will guide your efforts and ensure that every step in your launch strategy is focused on reaching those targets.

Step 2: Identify your target audience

The next step in your product launch strategy is to analyze your target audience . This means figuring out who your ideal customers are and understanding what they need. Knowing your audience helps you tailor your marketing messages and make sure your product meets their expectations.

To identify your target audience, consider the following:

• Demographics : Look at age, gender, location, and income level. This helps you understand who is most likely to buy your product.
• Interests and behaviors : Think about what your audience enjoys, their hobbies, and how they make purchasing decisions. This information helps you connect with them on a personal level.
• Pain points : Identify the challenges or problems your potential customers face that your product can solve. Understanding these pain points allows you to highlight the benefits of your product effectively.

Once you have a clear picture of your target audience, you can create marketing messages that resonate with them and choose the best channels to reach them. This ensures your product launch is focused and effective.

Step 3: Conduct market research

Conducting market research means gathering information about your industry, competitors, and potential customers to help you make informed decisions about your product launch.

Here’s how to conduct effective market research:

• Analyze competitors : Look at similar products in the market. What are their strengths and weaknesses? Understanding what competitors offer can help you identify what makes your product unique and how to position it effectively.
• Understand market trends : Research current trends in your industry. Are there new technologies or changing customer preferences? Knowing what’s popular can help you align your product with what customers want.
• Gather customer feedback : Talk to potential customers to understand their needs and opinions. This can be done through surveys, interviews, or focus groups. Their insights can guide you in refining your product and marketing approach.
• Review industry reports : Look for reports and studies related to your market. These can provide valuable data on customer behavior, market size, and growth projections.

By conducting thorough market research, you can make informed choices about your product, refine your messaging, and develop a strategy that stands out in a competitive landscape. This step helps ensure your product meets the needs of your audience and has the best chance of success.

Step 4: Craft your unique value proposition

Your UVP is a clear statement that explains what makes your product special and why customers should choose it over other options. It highlights the unique benefits your product offers and addresses the specific needs of your target audience.

To create an effective UVP:

• Identify key benefits : Think about what problems your product solves or how it improves the lives of your customers. Focus on the most important benefits that set your product apart.
• Differentiate from competitors : Consider what makes your product different from similar offerings in the market. This could be features, quality, price, or customer support.
• Be clear and concise : Your UVP should be easy to understand and memorable. Avoid jargon and use simple language that resonates with your audience.
• Make it compelling : Use persuasive language that highlights the value customers will get. Show them why your product is the best choice for meeting their needs.

A strong unique value proposition helps customers quickly understand why they should choose your product, making it a crucial part of your marketing and sales efforts. It guides your messaging and helps you connect with your audience effectively.

Step 5: Develop your messaging

This means creating clear and consistent communication that explains what your product is, how it works, and why it’s valuable to your target audience. Good messaging helps you connect with customers and encourages them to take action.

Here’s how to develop effective messaging:

• Create a product description : Write a simple and engaging description of your product that highlights its features and benefits. Make sure it answers the question, “What is this product and why do I need it?”
• Focus on your unique value proposition : Incorporate your UVP into your messaging. Make sure your audience understands what sets your product apart and how it solves their problems.
• Use customer-friendly language : Avoid jargon or complicated terms. Use language that resonates with your audience and is easy for them to understand.
• Craft key messages : Develop a few key points that summarize what you want your audience to know. These should be memorable and can be used across different marketing channels.
• Consider your tone : Decide on the tone of your messaging. Should it be friendly and casual, or professional and formal? Your tone should match your brand and appeal to your target audience.

By developing clear and engaging messaging, you can effectively communicate the value of your product, build excitement, and encourage potential customers to learn more or make a purchase. Good messaging is essential for a successful product launch.

Step 7: Choose your marketing channels

Decide where and how you will promote your product to reach your target audience effectively. Selecting the right channels helps ensure your message gets in front of the people who are most likely to buy your product.

To choose the best marketing channels:

• Know your audience : Think about where your target audience spends their time. Are they active on social media, reading blogs, or searching for products online? This will guide your choices.
• Social media : Platforms like Facebook, Instagram, and Twitter can help you reach a large audience quickly.
• Email marketing : Sending newsletters or promotional emails to your subscribers can be effective for direct communication.
• Content marketing : Creating blog posts, videos, or infographics can help educate your audience about your product and build interest.
• Paid advertising : Using ads on search engines or social media can increase visibility and attract potential customers.
• Influencer marketing : Partnering with influencers can help you tap into their audience and gain credibility.
• Evaluate your budget : Consider how much you can spend on marketing. Some channels, like social media, can be more cost-effective than others, like paid ads.
• Plan for integration : Choose channels that can work well together. For example, use social media to promote your email sign-ups, or create content that can be shared across multiple platforms.

Step 8: Set your pricing strategy

This involves deciding how much you will charge for your product. Your pricing should reflect the value of your product while being competitive in the market. Here’s how to set an effective pricing strategy:

• Consider your costs : Start by calculating the total cost of creating and delivering your product. This includes production, materials, shipping, and any other expenses. Make sure your price covers these costs.
• Research competitor pricing : Look at how similar products are priced in the market. This will help you understand what customers expect to pay and how your product compares.
• Identify your value : Think about what makes your product unique and valuable. If it offers special features or solves a significant problem, you may be able to charge a higher price.
• Cost-plus pricing : Adding a standard markup to your costs.
• Competitive pricing : Setting your price based on what competitors charge.
• Value-based pricing : Pricing based on the perceived value to the customer.
• Test your pricing : If possible, consider running promotions or testing different price points to see how customers respond. This can help you find the right balance between attracting buyers and maximizing profit.

By setting a well-thought-out pricing strategy, you can ensure your product is appealing to customers while also meeting your business goals. A good price can attract more buyers and support a successful launch.

Step 9: Create a detailed launch timeline

A launch timeline is a schedule that outlines all the tasks and activities you need to complete leading up to your product launch. It helps keep your team organized and ensures everything is ready on time. Here’s how to create an effective timeline:

• List all tasks : Write down every task that needs to be done before, during, and after the launch. This can include market research, creating marketing materials, setting up your website, and training your team.
• Set deadlines : Assign specific deadlines for each task. Be realistic about how long each task will take and make sure you leave enough time for unexpected delays.
• Identify key milestones : Mark important dates on your timeline, such as when you’ll start promoting your product or when you plan to launch. These milestones will help you track your progress.
• Coordinate with your team : Share the timeline with everyone involved in the launch. Make sure all team members understand their responsibilities and deadlines. This fosters collaboration and accountability.
• Monitor progress : As you work through the timeline, regularly check in on your progress. If you encounter any delays, adjust your timeline as needed to stay on track for the launch.

Creating a detailed launch timeline ensures that all aspects of your product launch are planned and executed smoothly. This preparation helps make your launch successful and stress-free.

Step 10: Prepare your team

Ensure everyone involved in the launch knows their roles, responsibilities, and what is expected of them. A well-prepared team can make the launch process smoother and more successful. Here’s how to prepare your team effectively:

• Communicate the plan : Share the details of your launch strategy and timeline with your team. Make sure everyone understands the goals, tasks, and deadlines.
• Assign roles : Clearly define who is responsible for each task. Whether it’s marketing, sales, or customer support, everyone should know their specific duties and how they contribute to the launch.
• Provide training : Offer any necessary training to ensure your team is ready. This could include product knowledge sessions, customer service training, or marketing strategy workshops.
• Encourage collaboration : Foster an environment where team members can communicate openly and work together. Regular check-ins or meetings can help everyone stay aligned and address any questions or concerns.
• Motivate and support : Keep your team motivated by celebrating milestones and encouraging teamwork. Recognize their efforts and provide support where needed, ensuring everyone feels valued and engaged.

Step 11: Test your product

Make sure your product works as expected before releasing it to the public. Testing helps you catch any issues and improve the product, ensuring it meets customer expectations. This way you can identify and fix any issues, ensuring that customers have a positive experience when it’s finally launched. Testing also builds confidence that your product is ready for the market.

Here’s how to test your product effectively:

• Conduct internal testing : Have your team use the product to check for any problems, such as bugs or design flaws. This is often called “alpha testing” and allows you to fix any issues early on.
• Run a beta test : Share the product with a small group of real users, known as beta testers. These users provide feedback on how the product performs in real-life situations and can identify any areas that need improvement.
• Gather feedback : Ask testers to give detailed feedback on the product’s usability, features, and overall experience. Listen to their suggestions, as this feedback can help you fine-tune the product.
• Make improvements : Based on the feedback you receive, make any necessary changes or fixes. This might involve updating features, fixing bugs, or improving the user interface.
• Test again if needed : If you make significant changes, consider running another round of testing to ensure everything works smoothly before launch.

Step 12: Execute the product launch

After testing your product and finalizing your launch plan, the next crucial step in your product launch strategy is to execute the product launch and activate your marketing campaign. This is the moment your product goes live and all your efforts come together to introduce it to the market.

Here’s what this step involves:

• Launch the product : Officially make your product available to customers across your sales platforms and update your website and product listings accordingly.
• Activate your marketing efforts : Start promoting your product using the marketing channels you’ve chosen, such as social media, email campaigns, paid ads, and influencer collaborations. Ensure your messaging is consistent and aligned with your unique value proposition.
• Host any launch events : If you’ve planned events like product demos, webinars, or launch parties, now is the time to execute them to build excitement and awareness.
• Engage with your audience : Interact with potential customers, respond to questions, and encourage conversations on social media or other platforms to create buzz around your product.
• Monitor real-time performance : Track key metrics like sales, website traffic, and customer engagement from the moment of launch. This allows you to quickly address any issues and make real-time adjustments if needed.

Executing the product launch and activating your marketing campaign is the pivotal stage where you present your product to the world, engaging your audience while measuring early performance to ensure success.

What to Do Post-Launch: Evaluating Success and Refining Your Strategy

Once your product is launched, the real work begins. It’s important to continually monitor how your product is performing and make adjustments to ensure its ongoing success. This post-launch phase is all about evaluating what’s working, identifying areas for improvement, and refining your overall strategy to meet your business goals and customer expectations. Here’s a detailed guide on what to do post-launch:

1. Track key results (KPIs)

Start by identifying the most important metrics, or key performance indicators (KPIs), to track. These may include sales figures, customer acquisition rates, website traffic, social media engagement, and product usage data.

Here are some important metrics (KPIs) to track during and after your product launch:

• Sales revenue : Total revenue generated from product sales during the launch period.
• Units sold : The number of individual products sold, providing insight into demand.
• Customer Acquisition Cost (CAC) : The cost associated with acquiring a new customer, helping to assess the efficiency of your marketing efforts.
• Customer acquisition rate : The rate at which new customers are gained, reflecting the effectiveness of your promotional strategies.
• Website traffic : The number of visitors to your product page or website, indicating interest and visibility.
• Bounce rate : The percentage of visitors who leave your site after viewing only one page, helping to assess website engagement.
• Conversion rate : The percentage of website visitors who complete a desired action, such as making a purchase or signing up for a newsletter.
• Social media engagement : Metrics such as likes, shares, comments, and follows on your social media posts related to the launch.
• Email open rate : The percentage of recipients who open your launch-related emails, indicating the effectiveness of your email marketing campaigns.
• Product usage data : For digital products, metrics like daily active users (DAU) or monthly active users (MAU) to assess how often customers are using the product.
• Customer retention rate : The percentage of customers who continue to use the product over time, indicating satisfaction and loyalty.
• Net Promoter Score (NPS) : A measure of customer satisfaction and loyalty based on their likelihood to recommend your product to others.
• Return rate : The percentage of sold products that are returned, which can indicate potential issues with product quality or customer satisfaction.

Regularly monitor these numbers to see how your product is performing in the market. For example, if sales are strong but website traffic is low, it might indicate a need for better online visibility. Tracking KPIs will help you measure the overall success of your launch and highlight areas that need more attention.

2. Listen to customer feedback

• After launch, customer feedback is crucial for understanding how your product is being received. Encourage customers to share their opinions through reviews, surveys, social media, and support interactions.
• Take note of both positive and negative feedback. Compliments highlight what’s working, while criticism reveals areas that may need improvement.
• Use tools like customer satisfaction surveys or Net Promoter Scores (NPS) to gather structured feedback that helps you gauge overall satisfaction levels and loyalty.

3. Study sales patterns

• Look closely at your sales data to identify trends. Are there certain customer segments buying more frequently? Is there a peak in sales at specific times or in response to certain marketing activities?
• Analyze which marketing channels (such as social media ads, email campaigns, or influencer partnerships) are driving the most conversions.
• This data can help you better understand your audience and optimize your sales strategy by focusing on what’s working best.

4. Adjust your marketing efforts

• Once you’ve reviewed the performance of different marketing channels, it’s time to refine your marketing strategy. If a certain channel is performing exceptionally well, consider investing more time and resources into it.
• On the other hand, if certain efforts aren’t delivering results, don’t be afraid to pivot. For example, you may decide to test a new advertising platform or adjust your messaging to better resonate with your audience.
• Keep experimenting with your marketing mix to find the best combination for maximizing visibility and driving sales.

5. Make product improvements

• Use customer feedback and data to identify areas where your product can be improved. Whether it’s fixing bugs, adding new features, or enhancing the user experience, making updates based on real-world usage is key to retaining customers.
• Prioritize the most impactful changes first—those that will solve the biggest pain points for your users or add the most value to the product.
• Keep your customers informed about updates or new features, so they know you’re listening to their feedback and continually improving the product.

6. Review your overall plan

• Post-launch, it’s important to revisit your overall business and marketing strategy. Are your original goals being met? Are there any new opportunities you should explore based on what you’ve learned since the launch?
• Assess whether you need to adjust your pricing strategy, expand into new markets, or update your branding to better align with how customers are engaging with your product.
• Make sure to remain flexible and open to change, as product launches rarely go exactly as planned. Being willing to adapt will help you stay competitive and relevant in the market.

Common Reasons Why Product Launches Fail

Even with careful planning, many product launches don’t succeed. Understanding the common reasons for failure can help you avoid making the same mistakes. Here are some key factors that can lead to a failed launch:

• Lack of market research : Without thorough market research, you may fail to identify your target audience’s needs and preferences. This can result in a product that doesn’t resonate with customers, leading to poor sales. Understanding customer demographics, buying behavior, and pain points is essential to create a product that appeals to them.
• Poor timing : Timing is critical in product launches. Launching a product during peak seasons when many similar products are available can drown it out. Additionally, launching during economic downturns or global events can reduce consumer spending. Properly analyzing market trends and competitor launches can help you choose the right time to go live.
• Weak marketing strategy : A vague or ineffective marketing strategy can prevent your product from gaining traction. If your promotional materials fail to clearly communicate the product’s benefits or if the messaging is inconsistent across channels, potential customers may not engage. A well-defined marketing plan that includes clear goals and targeted messaging is essential for generating interest.
• Inadequate testing : Skipping or rushing through testing can result in launching a product with bugs or usability issues. Customers expect a seamless experience, and encountering problems can lead to frustration and negative reviews. Conducting thorough testing, including beta testing with real users, can help identify and fix issues before launch.
• Unclear value proposition : If customers cannot easily grasp what makes your product unique or beneficial, they may not see a reason to purchase it. A compelling value proposition should clearly articulate how your product solves a problem or improves the customer’s life compared to competitors. Without this clarity, potential buyers may choose alternatives that better communicate their value.
• Ignoring customer feedback : Failing to listen to and act on customer feedback can hinder your product’s success. When customers share their experiences or suggestions, it’s important to acknowledge and address their concerns. Engaging with customers through surveys, reviews, and social media not only builds trust but also provides valuable insights for improvement.
• Overpromising and under-delivering : When marketing materials promise more than what the product delivers, customers will inevitably feel disappointed. This can lead to negative reviews, returns, and a damaged brand reputation. Ensure that your marketing claims are realistic and backed by the product’s actual features and performance.
• Failure to adapt : The market is dynamic, and consumer preferences can change rapidly. If you’re not willing to adapt your strategy based on feedback and performance data, your product may quickly become irrelevant. Continuously monitoring market trends and being flexible in your approach will help you stay competitive and responsive to customer needs.

Examples of Successful Product Launches

Many companies have successfully launched products that became popular and impactful. Here are some notable examples that highlight effective strategies and approaches:

1. Apple iPhone

When Apple launched the first iPhone in 2007, it transformed the smartphone market. The company created massive anticipation through teasers and a grand launch event. Apple focused on a sleek design and user-friendly interface, showcasing how the iPhone combined phone, music player, and internet browsing into one device. The launch was a huge success, leading to millions of sales in the first few months.

2. Tesla Model S

Tesla’s Model S was launched with a clear vision of revolutionizing electric cars. Before its release, Tesla built excitement by showcasing prototypes and sharing updates on social media. They highlighted the car’s long range, performance, and innovative technology, like autopilot features. The Model S received rave reviews and helped establish Tesla as a leader in the electric vehicle market.

3. Coca-Cola’s New Formula

In 1985, Coca-Cola launched “New Coke,” a reformulated version of its classic drink. Although it initially faced backlash, the company learned from customer feedback and reintroduced the original formula as “Coca-Cola Classic.” This move not only salvaged the brand but also generated significant media attention and sales, proving the power of listening to consumers.

4. Nike Air Jordan

Nike’s Air Jordan line, launched in the mid-1980s, was a game-changer in sports marketing. By partnering with basketball star Michael Jordan, Nike created a strong brand association. They built hype through exclusive releases and strategic marketing campaigns, making Air Jordans a must-have for sneaker fans. The line has continued to thrive for decades, cementing its place in pop culture.

Creating a Successful Product Launch Strategy with Creately

Launching a product successfully requires careful planning and collaboration. With Creately, you can create a comprehensive product launch strategy that enhances collaboration, streamlines planning, and increases your chances of success. Whether you’re mapping out your goals, tracking progress, or presenting to stakeholders, Creately provides the tools you need to make your launch a success.

• Visual planning : Creately allows you to create clear and organized visual plans. You can use flowcharts, mind maps, and other diagrams to outline every step of your launch strategy. Visualizing your plan helps your team understand their roles and responsibilities more easily.
• Collaboration tools : With Creately, you can collaborate with your team in real-time. Everyone can work together on the same document, making it easy to share ideas, provide feedback, and make changes. This ensures that everyone is on the same page and can contribute to the strategy.
• Templates for strategy development : Creately offers various templates designed for product launches. These templates can help you get started quickly by providing a structured format. You can customize them to fit your specific product and goals, saving you time and effort.
• Tracking progress : You can use Creately to create Gantt charts or timelines to track your progress. This feature allows you to set deadlines for each step of the launch process and monitor completion. Keeping track of your timeline ensures that you stay on schedule and meet your launch date.
• Data visualization : Creately helps you present data in a visually appealing way. You can create charts and graphs to analyze market research, customer feedback, and sales projections. Visualizing this information makes it easier to spot trends and make informed decisions for your launch.
• Integrations : Creately integrates with other tools you may already be using, such as Google Drive and Slack. This means you can easily share your plans and collaborate with your team across different platforms, enhancing communication and efficiency.
• Presentation features : Once your strategy is in place, you can use Creately to create professional presentations. These presentations can be used to share your product launch plan with stakeholders, ensuring everyone understands the vision and goals.
• Commenting and feedback : Creately allows team members to leave comments directly on diagrams or documents. This feature facilitates constructive feedback and discussions, making it easier to refine your strategy based on input from various stakeholders.

Wrapping up

Creating a successful product launch strategy is essential for your product’s success. Start by defining your goals, identifying your target audience, and conducting market research. Craft a unique value proposition and develop clear messaging to engage potential customers.

Set a pricing strategy, create a detailed timeline, prepare your team, and test your product to ensure a smooth launch. After your product goes live, measure its success and be ready to adapt based on feedback.

By following these steps and avoiding common pitfalls, you can increase your chances of a successful launch. With careful planning and open communication, you can make a strong impact in your market and achieve your business goals.

Join over thousands of organizations that use Creately to brainstorm, plan, analyze, and execute their projects successfully.

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Amanda Athuraliya is the communication specialist/content writer at Creately, online diagramming and collaboration tool. She is an avid reader, a budding writer and a passionate researcher who loves to write about all kinds of topics.

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Southwest Airlines Lays Out Overhaul, and Stock Gains

The carrier’s move, including service enhancements and share buybacks, came after a hedge fund called for cost savings and better profits.

By Niraj Chokshi

Reporting from Dallas

Southwest Airlines announced a three-year plan on Thursday to revitalize its operation and customer offerings as it defends against an activist investor calling for new leadership and a strategy overhaul.

The plan expands on a series of changes by Southwest in recent months, including plans to add premium seats, introduce red-eye flights and replace its pick-your-own seating system with assigned seats, starting in 2026.

The airline said on Thursday that it would begin selling vacation packages and was partnering with international airlines, starting with a connection in Baltimore via Icelandair next year. It also announced a $2.5 billion share repurchase program and plans for operational changes, including speeding up how long it takes to get planes back in the air after they have landed and finding other ways to reduce costs.

Southwest shares were closed more than 5 percent higher on Thursday after rising more than 10 percent in early trading after the announcement.

Bob Jordan, Southwest’s chief executive, presented the initiative during a meeting with investors and analysts on Thursday morning, calling it “the most transformational plan” in the airline’s history.

“We’ve laid out a plan that is built on the values and the principles that generated years of financial success and shareholder returns that garnered admiration, loyalty and love,” he said.

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United Airlines to offer free Wi-Fi using Starlink from Elon Musk's SpaceX

United Airlines  said Friday that it plans to offer inflight Wi-Fi for free using Starlink from  Elon Musk ’s SpaceX on its hundreds of jetliners, the biggest inflight internet deal yet for the satellite service provider.

The team-up comes as airlines have been investing in faster inflight Wi-Fi, sometimes offering it for free, in a bid to attract higher-paying customers like business travelers.

Delta Air Lines  announced in early 2023 that  onboard internet  would be free for members of its SkyMiles loyalty program.  Hawaiian Airlines , which has a  deal with Starlink , also offers complimentary inflight Wi-Fi.  JetBlue Airways  has offered free Wi-Fi for years.

SpaceX also previously made a deal with semi-private airline JSX.

United currently offers inflight internet from a hodgepodge of providers, including  ViaSat  and Panasonic, and charges loyalty program members $8 and everyone else $10 for access on domestic and short-haul international flights.

The carrier said it expects to have Starlink on its more than 1,000 planes over the “next several years” with the first passenger flights outfitted with the service starting early next year. United said the Wi-Fi will offer “gate-to-gate” connectivity.

United praised SpaceX’s satellite service, saying it provides “internet access around the world, including over oceans, polar regions and other remote locations previously unreachable by traditional cell or Wi-Fi signals,” a selling point for the U.S. airline with the most service over both the Atlantic and Pacific.

SpaceX has steadily expanded its Starlink network and product offerings since its debut in 2020. There are currently about 6,000 Starlink satellites in orbit that connect more than 3 million customers in 100 countries, according to the company. SpaceX initially targeted consumer customers, but has expanded into other markets, including aviation.

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