Including Product and Service Information

Why this section matters

Your business plan should explain what products or services you offer and how they generate income. Whether you make a product, provide a service or offer a mix of both, readers need to understand what it is and why people will pay for it.

This section can become vague or receive too little attention. If a reader finishes your plan unsure what you sell, the rest of it will carry less weight.

Banks, investors and other finance providers will want to understand what you sell and whether customers are likely to buy it. If you apply through Start Up Loans, a British Business Bank programme offering personal loans for business purposes, your business plan will form part of the assessment.

Describing what your business does

Start with a plain description that someone outside your industry would understand, without jargon. A few sentences should be enough.

Then add the detail a reader will need. In most cases this will include:

• what the product or service is and what it does
• who it is for, what problem it solves, and any evidence of demand, such as customer interviews, pilot results, paid trials, orders or repeat purchases
• how it is made, sourced or delivered
• your price, how you arrived at it, your direct costs and expected gross margin, and whether prices include VAT
• whether it is ready to sell or, if not, what remains to be done, the expected launch date, costs and any testing or approvals needed

Distinguish expressions of interest from actual sales, and make sure your price and margin figures match your financial forecasts.

If you offer several products or services, focus on those expected to bring in most of your income. Put detailed specifications, photographs, test results or technical documents in an appendix so the main section stays readable.

Your situation may be slightly different. ask a question below ↓ and our editorial team will reply with our advice.

Explaining what makes you different

Readers will want to understand why customers might choose you rather than a competitor, particularly one that is larger or better known. Be honest and specific. Claiming better quality or service means little unless you can explain how.

Differences may come from price, convenience, design, expertise, location, speed or customer care. Show that you have looked at what competitors offer and where your business fits. If others could copy your advantage quickly, say how you plan to stay ahead.

If intellectual property is important to your offer, explain what you own or have permission to use, and how you protect it. Relevant protection may include trade marks, patents, registered or unregistered design rights, copyright and confidentiality agreements. If you may seek a patent, take advice before publicly disclosing the invention. The Intellectual Property Office explains each type of protection on GOV.UK.

Practical and legal points to include

You should also show that you understand the practical side of selling. Depending on what you offer, you may need to cover:

• key suppliers, lead times and what you would do if one let you down
• production capacity or, for services, staffing, skills, subcontractors, delivery times and how many clients you can serve
• any licences, registrations or qualifications you need
• safety standards, labelling or product marking rules that apply
• customers' statutory rights, any applicable cancellation rights, your returns policy, commercial guarantees and aftercare

Food businesses generally need to register with their local authority at least 28 days before starting to trade, and some establishments also need approval. Check Food Standards Agency guidance, or Food Standards Scotland guidance if you operate in Scotland. Business Companion, supported by the Chartered Trading Standards Institute, explains consumer law and product safety in plain terms. Some requirements differ between Great Britain and Northern Ireland, particularly for product safety, marking and imports. Check current VAT rates and thresholds on GOV.UK.

Finally, explain any planned changes to your range, including their timing, cost and basis in customer demand.

Check the business support services available in your area, including local Growth Hubs in England, Business Gateway in Scotland, Business Wales and Invest Northern Ireland. The advice and support available will depend on your location and eligibility.