hi it's Kathy.
thanks for checking out thethird video in the working for Wonka how to write a business plan series.
inthis video are going to go over the products for service description: and this will probably be the easiest section for you to write.
because it there's anything that yourentrepreneur and hopefully you, know it's your product or service.
it's why thecompany was founded it's why you're in business, it's what you're about.
however, although your entrepreneur may havean uncanny knack for knowing what's the right product for the right market at the right timethey may have a total inability to articulate the why behindthat product.
and that's what you're going to fleshout in your product or service description.
to do that and we'll take you back intothe elevator.
your product or service description:should also sound a bit like an expanded, in this case very expanded,elevator pitch and that's because it should answer thebasic questions of, what is the product, what makes it unique, and where do you see itgoing we do that by answering the basic questions what, why, and how.
Starting with the what.
What isyour product? What are the function at what is thefunctionality of your product what are the bells and whistles ofyour product.
and what about your product makes it unique, andwhat about your product makes it exclusive to you.
now functionality would be exclusive toyou if you own a patent or trademark on that product.
And if you do youabsolutely want to include that here because that kinda raises the barrierof entry for your competitors.
Here's what that might look like: the HBBM mousetrap is a first-of-its-kind luxury mousetrap.
each trap comestastefully furnished with Farmery Barn furniture, including a mini-flat screenTV and a fully stocked bar.
the interiorcage is enveloped in a patent-pending padding blah blah blah.
now your description isgoing to be much longer than this.
what I'm tryingto do is cut is condense it down to show you the few key points.
what i'm sayingis look, here's what makes us different andunique as far as functionality in the industry of mousetraps.
and that's that we come fully furnished,we have a mini-TV, we will fully stocked bar and what can be better than a fully stocked bar? we have padded wallsand, even better, our padding is exclusive to us.
It'spatent pending.
follow the What with the Why this is where your entrepreneur maystumble.
they made very clearly see one Why, and that's why they've launched the company.
but, usually there's more than one function to a product, and there'sdefinitely going to be more than one benefits to a product.
that what you're answering with the Why: what's the benefit what's?What problem is this function our products solvingwhat still needs state at the consumer that you're addressingyou don't need to go too deep into the consumer here, because you're going to dothat and marketing section later.
here's this might look like: thehigh-end amenities provided by our mouse trap helps both the socialite and social climbing rodent adjust morequickly to captivity.
by emulating a familiar environment, HBBM mousetrap is able to relax and calm the rodent until it can be extracted, making for aless bitter mouse and a more enjoyable feline dining experience.
Ick.
But again what I'm saying, in acondensed form here, is these functions: furniture, and TV, fully stocked bar, are beneficial to our consumer, and whatfullly-stocked bar would not be beneficial, because it relaxes our mouse.
and when the mouse is relaxed our end consumer, our ultimate consumer, has a more enjoyable dining experience.
Again, ick.
After the why you're gonna answer the How.
How aremaking this happen? what are your manufacturing details?what's your secret sauce behind the development of this product?What's your development cycle? now development cycle, if your launching anactual product could be at the time it takes you ideation tobeing on shelf.
if you're a service, it might be from leadgeneration to closing the sale.
and then what are your futuredevelopment goals with this product? is this always going to be a single mousetrap?are you gonna have mousetrap condos? are you going to have a mousetrap City? where you taking this mousetrap?that's your How.
really that's all you need to address in yourbusiness description what why and how.
however I'm notsuggesting we should be a three paragraph section.
this section probablyshould have should meat behind it.
How much meat, is up to you.
a few theother things that people include sometimes to beef up the section are productspecifications, you could include that or you can putthat in Appendix at the end.
some people like to see the productfinancials in this section.
now, obviously, we're going to covercompany financials and product financials in the finance section, but you may want to include your pricingstructure and your margin analysis here.
other people like to take a look at acompetitive landscape in the product description section.
we're going to look at competitors in the marketing section but if you want to look at competitors here, I recommend you do that in a benefitanalysis.
use whatever type chart you like touse, and landscape out maybe two of your your key benefits this your competitors in there, and seewhere you fall in that landscape.
hopefully you fall all by yourself in one one area of thatcompetitive landscape.
and really that's it.
That's all you need to writeout for your for your product or service description.
Our next video will be on marketing strategy.
thanks forchecking out the Working for Wonka how to write a business plan series.
formore information on business plans or on Working for Wonka check out WorkingForWonka.
Comthanks again, and I look forward to helping you survive the entrepreneur boss.
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