What does your business offer, and why should anyone care?
These two simple questions lie at the center of the products and services section in a business plan. It’s where you introduce your core offerings, the problem they solve, and their pricing.
Whether you’re creating a plan to attract investors, onboard partners, or retain customers, this section is your chance to show what makes your business stand out and why it matters.
Let’s look at what to include in a clear and effective products and services section.
What is a product and services section in a business plan?
The products and services section in business plans is where you clearly answer the following:
- What you’re offering (specifics of your product and/or services)
- How your offering benefits your customers (how they solve customer’s problems)
- What makes your products or services different from what’s already available in the market
These points provide potential investors, partners, or stakeholders with a clear understanding of your business’s unique value proposition.
What to include in the products and services section of a business plan
Writing an effective products and services section requires a structured approach. Here are the 10 key components to include that stand out:
1. Detailed description of your product or service
First things first: “your offering,” the core of your business. Start by clearly stating what your business provides— whether it’s a product, service, or a mixture of both.
If you offer a product, mention:
- How it works (functional features and specifications).
- Its physical characteristics (size, color, materials used, etc.)
- Its quality and durability.
In case of a service, mention:
- How the service works including the steps involved in how it’s provided or delivered to a customer.
- Its benefits customers will enjoy.
- Its special features like customization.
The goal here is to present your offering in a way that makes your audience understand its value and spark an interest.
2. Standout features that set you apart
What about your product or service will make people choose it over the competition?
Is it superior quality, enhanced functionality, or a unique selling proposition (USP) that competitors can’t replicate?
List the features that differentiate your business and how. Compare your offer to similar competitors' services or products to highlight your strengths.
You can also mention any endorsement from industry experts that validates your product's quality and its market fit.
Lastly, don’t forget to leverage market research to ensure that your product’s unique features align with customer demand and market trends.
The main idea is to highlight why you’re awesome and others aren’t so your product or service is worth investing in.
3. Strategic pricing approach
“The moment you make a mistake in pricing, you’re eating into your reputation or your profits.” — Katharine Paine
Clearly, pricing isn’t just about numbers; it’s about positioning your offering in the market to meet customer needs while being affordable for the target audience.
So here explain how you’ve priced your product or service, and why that pricing makes sense for your ideal customers.
The following table has some data for you to consider:
| Aspect to include | Description |
|---|---|
| Cost Structure | Breakdown of production or delivery costs |
| Pricing Model | Whether you use cost-plus, value-based, competitive pricing, etc. |
| Profit Margins | Expected margins and how they contribute to overall profitability. |
4. Sales literature
Next, consider how you'll communicate your offering's value to customers and convince them to buy. Whether it's through direct sales, retail, wholesale, or a website, ensure you have the right materials to sell your offering.
Include marketing materials that communicate the key benefits of your product and why it is unique. For example, explainer videos, landing pages, infographics, case studies, and more!
These materials should speak directly to the pain points of your target market and position your offering as the solution they need.
5. Supply chain and production
Now, let's get into how you’re actually going to deliver your product or service.
- If you’re selling a product, where does it come from?
- What are the manufacturing processes?
- Who manufactures it and how do you ensure the quality?
- If you’re selling a service, how do you ensure that it’s always delivered according to standards?
Answer these questions to define key suppliers, manufacturers, or partners that would ensure bringing your product to its desired life.
Highlight procedures that ensure a smooth and efficient workflow, from receiving orders to final delivery.
79% of those with highly efficient supply chains saw substantially better revenue growth than the average.
6. Intellectual properties
List out all the Intellectual Property (IP) documents related to your products and services such as trademarks, copyrights, seller permits, trade secrets, patents, other licenses, insurance policies, etc.
This is also a good time to mention any legal issues you’re currently facing and explain how you’re dealing with or will deal with them.
7. Current development stage and financial projections
Take the opportunity to talk about where your product stands in terms of development.
- Is it ready for launch?
- Is it in beta testing?
- Or is it in the idea stage?
Explain how far along you’re in the process and what steps are left to bring your product to the market.
Then discuss your growth expectations. How many new customers do you expect in the coming year? What percentage do you think you'll achieve in terms of revenue growth?
When you make projections, investors tend to feel at ease and believe you're clear on what to expect next.
8. Plans for future growth and expansion
Show that your existing business is not stagnant and there’s always scope for improvement.
What does the future look like for your product or service? Do you have new features in store, or are you improving the existing ones? Do you have plans to venture into other markets?
Outline your growth plan and how you will scale your business.
This shows to the investor that your business has room for growth as well as adaptability to changing market demand.
9. Customer feedback and testimonials
This section is all about building trust and credibility.
Include feedback, reviews, and testimonials as they indicate how your offering has had a positive impact on potential customers. If you have not collected any feedback yet, insights from pilot tests or beta users can be used.
Insights from market analysis can also complement customer feedback by providing a broader view of industry trends, helping you understand how your product is perceived in the market.
This real-world validation can be very convincing to investors or potential partners who want to see that your product/service is well-received and effective in solving customer problems.
Example of product and services section in business plans
To help you get started, here’s an example of a "Product and Service" section in a traditional business plan for “Paws & Relax,” a dog grooming business.
Overview of our product and service
At Paws & Relax, we deliver professional dog grooming services right to the customer’s doorstep, performed by our certified groomers.
Additionally, we offer a curated selection of premium pet products which are also available through our e-commerce platform.
Our goal here is to simplify pet care for busy owners by offering convenient, at-home grooming, so they can skip the stressful trips to the salon.
Here is a list of products and services we offer:
- Full-Service Grooming: Bathing, brushing, haircut, nail trimming, ear cleaning, and teeth brushing.
- Specialty Spa Treatments: Hypoallergenic shampoos, de-shedding treatments, pawdicures, and aromatherapy baths.
- Mobile Grooming Services: Grooming at the client’s doorstep for added convenience.
- Retail Boutique: High-quality pet care products, including shampoos, brushes, and accessories.
- Membership Packages: Subscriptions offering discounts on recurring grooming appointments.
Now what makes Paws & Relax stand out?
- Personalized Care: Tailored grooming based on breed, size, coat type, and customer preferences.
- Certified Groomers: Trained and certified professionals with expertise in handling dogs of all temperaments.
- Calming Environment: Use of pet-safe, non-toxic products, and soothing music to reduce pet anxiety.
- Mobile Units: Fully equipped, hygienic grooming vans for ultimate customer convenience.
- Eco-Friendly Practices: Commitment to sustainability through biodegradable products and water-saving techniques.
Pricing approach
We have set our prices to match the high-quality services and products we offer, while also making sure they’re fair and competitive.
We use a mix of value-based pricing and competitive pricing to ensure our prices reflect the quality and convenience we provide.
Here's a breakdown of our service prices:
- Bathing: $25 (includes shampoo, water rinse, and towel dry)
- Haircuts: $40 (includes bath, haircut, and styling)
- Nail trimming: $15 (includes nail trim and paw pad cleaning)
- Ear cleaning: $10 (includes gentle ear cleaning with pet-safe solution)
- Teeth brushing: $10 (includes brushing with enzymatic pet toothpaste)
Here's a breakdown of our product prices:
- Shampoos: $15–$25 (depending on size and type)
- Collars: $12–$30 (variety of designs and sizes)
- Toys: $8–$20 (durable, eco-friendly materials)
- Nutritious treats: $5–$20 (based on size and type)
- Water and food bowls: $10–$25 (depending on material and design)
Below is a quick look at how Paws & Relax compares to traditional grooming salons and competitors in key areas.
Supply chain and production
For our pet products, we partner with reputable suppliers like PetCo, a leading pet retailer with over 1,500 stores across the U.S., and Chewy, an online pet product retailer serving over 20 million potential customers.
Both companies meet rigorous quality standards, ensuring that every product we offer is safe, effective, and beneficial for pets.
Current development stage and financial projections
Paws & Relax is currently serving its local area with a loyal customer base.
We plan to expand to nearby cities and increase our grooming fleet by 30% over the next year.
Also, we expect a 15% increase in sales revenue driven by the growing demand for home-based services and new product lines.
Plans for future growth and expansion
Looking ahead, we plan to broaden our offerings by introducing additional pet care services like training and daycare.
We also aim to diversify our future product range by including premium pet accessories and exclusive grooming packages.
With these initiatives, we plan to extend our reach, increase our market share, and solidify Paws & Relax as a comprehensive, trusted brand in the pet care industry.
Tips on writing a good products and services section
Here’s just a list of a few must-follow tips for an effective products and services section:
- Be concise: Craft this section in a way your readers can get to know everything by just scanning the content. No need for redundant details; just the necessities.
- Consider your readers: Whom are you speaking to—investors, customers, or partners? Customize your tone accordingly to easily secure funding or gain a partner (whatever your intentions are).
- Flaunt your expertise: Share why you're the best person to provide them. Include your education, experience, testimonials, awards, endorsements, or anything that brags about your expertise in your field.
- Highlight the problem you solve: Every successful product or service solves a problem. What’s the pain point your business addresses? Make sure your readers see how you’re filling a gap in the market that others haven’t yet.
Conclusion
To wrap up, the product and services section is your chance to highlight what makes your offering unique and valuable. It’s not just about what you sell, but how it solves a problem and stands out in the market.
Focus on key details like standout features, pricing strategy, competitive edge, and growth potential in a correct business plan format.
If you’re still not sure, just let professionals handle it. Our expert writers and consultants at PlanGrow Lab can help you create a detailed and effective business plan with a product and services section that meets your requirements.
So why wait? Contact us today!
Frequently Asked Questions
What to put in the products and services section?
Explain what your business offers, how it helps customers, and what makes it different. Include details about key features, pricing, competition, supply chain, customer feedback, and growth plans.
How much detail do I need to include in my products or services?
Keep it simple and clear. Share the most important details that show the value of your product and how it's different from others. If it’s a new business with a new product or service, highlight its use in detail.
Do I need to include pricing information in the products and services section?
Yes, include pricing so readers can understand how your product is priced. Explain why you chose that pricing method (value-based, competitive, or cost-plus).
What mistakes should I avoid when writing about products and services?
Avoid vagueness, neglecting competitor analysis, and overloading with unnecessary details. Use clear, simple language and ensure your offering’s unique value is well-explained.
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