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

March 21, 2024
Business Plan , How to Write

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

behavior of the product in business plan

Products example: a Brewery business plan

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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?

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 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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What is a product plan and how to create one in 6 steps

Whenever I read about the next hot, new start-up with unicorn potential, I can’t help but think of Pinky and the Brain .

What Is A Product Plan And How To Create One In 6 Steps

Both titular characters in the mid-90s animated TV series are genetically modified laboratory mice. Brain is hyper-intelligent; Pinky, not so much.

Brain’s primary objective? World domination:

Pinky : Gee, Brain. What are we going to do tonight? Brain : The same thing we do every night, Pinky. Try to take over the world.

In each episode, Brain devises a diabolical yet half-baked plan — for example, manipulating the world’s biggest magnet to form discarded satellites to spell “Brain is your ruler” — that invariably ends up foiled.

What does this have to do with product management?

Devise a product plan to take over the world

If you want to make an impact with your product and solve all your customers’ problems, don’t be like Brain; take the time to devise a product plan before you make your first move on your quest for market domination.

Creating roadmaps and backlogs is a great start, but product planning covers a much wider scope.

In this guide, we’ll define what product planning means, why it’s important, and the components and steps involved in creating a product plan.

What is a product plan?

Product planning covers all the steps, activities, and decisions a company must perform and make to develop a successful product.

A product can be defined as an input-outcome device. The input is the customer value proposition and the outcome is the company’s profit. Product planning includes everything you need to do internally to get from input to outcome.

It starts with a recognized customer need — after all, customers don’t just buy a product, they buy what the product will do for them to solve a problem they are having. It ends when the product has reached the end of its usefulness from a business perspective.

What is the purpose of product planning?

Product planning encompasses the actions and components that contribute to achieving a specific outcome. Product management is all about realizing outcomes.

Before jumping into the how and what, let’s first understand why product planning is important by outlining its six objectives:

Company survival
Meet customer needs
Increase sales
Understand and manage strengths and weaknesses
Better manage capacity
Plan effectively

1. Company survival

The eye of the tiger, survival of the fittest — or as P. Diddy said, it’s all about the Benjamins .

Product planning allows you to focus, remain viable, and understand your ability to innovate. It also helps you clarify how to introduce, grow, and sunset products in highly competitive markets.

2. Meet customer needs

The customer is at the heart of any product. Thorough product planning will set you up to understand and meet your customers’ needs. This, in turn, helps you quickly move customers from evaluators to champions through the product-led growth flywheel .

3. Increase sales

Your product can be lightyears ahead with brilliant solutions to customer problems, yet if they are not interested in the solution and don’t buy the product, your product fails.

For example, virtual reality seems to have finally found product-market fit . VR technology though, is not new.

In the 90s, VR was on the rise and forecasted sales potential was off the charts. Unfortunately, VR systems such as the Virtual Boy failed to deliver; its poor ergonomics and underwhelming stereoscopic effect gave users terrible headaches.

With better product planning, Nintendo might’ve been able to craft a more sophisticated product that satisfied customer expectations and, as a result, increased sales.

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4. Understand and manage strengths and weaknesses

Product planning allows you to look introspectively and analyze your strengths and weaknesses in light of market requirements. What does your product do really well? What qualities distinguish it from competitors? What does your product lack and what do competitors do better?

By asking and answering questions like these, you’ll gain a better understanding of what you can take advantage of and what you need to improve in your product.

5. Better manage capacity

What’s one thing every company has in common? Limited resources in terms of capital, material, and human resources. Product planning enables you to plan these optimally and get the most out of them.

6. Plan effectively

When you’re building products, you have many competing priorities . Will you invest in new features, enhance and improve existing ones, reduce technical debt , or spend more time on improving discovery and delivery processes ? Product planning allows you to meet your long-term strategic plans.

6 considerations for product planning

Now that we understand why product planning is essential, how do you go about doing it?

Creating a successful product plan involves the following considerations:

Research before development
Choose a delivery method
Coordinate activities
Set a price
Commercialize the product
Abandon unprofitable products

1. Research before development

Energy to get going: Check. Confidence it will work out: Check.

Validation that the idea will deliver what customers need? [Buzzer sounds].

Before jumping into the deep end of product development, start with extendive market and user research. The insights gathered therein will help you establish what characteristics and requirements your product must fulfil to meet customers’ needs.

2. Choose a delivery method

All roads lead to Rome. The question is, which is the most efficient?

This is even more applicable when it comes to product delivery. Which delivery method will enable you to develop your product or feature exact how the customer needs it to be?

3. Coordinate activities

Product planning aims to coordinate all the initiatives and activities around the product and its investments. Doing so allows you to improve your competitive position and strive for market leadership. It also helps you quickly respond to changing market conditions.

4. Set a price

Product planning helps you determine the ideal price point for your product.

5. Commercialize the product

Product planning helps you uncover and validate the viability, feasibility, and desirability of your product.

Desirability speaks to satisfaction of customer needs and the commercialization of the product. This measure helps you ensure viability and, hopefully, rake in profits.

Product planning also considers how to best introduce the product to the market and continuously measure success post-launch .

6. Abandon unprofitable products

All good things eventually come to an end. Every decision in a product is a business decision, and there will come a time that further investment in a product or product feature becomes unprofitable.

At that point, a decision has to be made whether or not to sunset the product or feature.

Good product planning throughout the product lifecycle helps you recognize when it is time to abandon the product and sunset it in a structured way with minimal impact on customers.

How to create a product plan in 6 steps

OK, enough small talk. It’s time to deep-dive into the product planning process.

Product planning involves six steps:

Market and user research
Concept ideation
Screening and testing
Introduction and launch
Product lifecycle

1. Market and user research

Before you start to build, it’s crucial to understand the problem you’re trying to solve, the market drivers, competitors, and customer needs. You can generate insights on all of the above through market research.

Competitive analysis , a subset of market research, is a structured approach to identifying and analyzing competitors.

Both are conducted to identify markets, investigate market positioning , and analyze the business’s success.

Through customer segmentation research, which is especially important to new businesses, larger customer groups are divided into different groups with personas.

The personas form the basis of user research, which is aimed at understanding potential customers’ problems, habits, interests, motivations, and more.

2. Concept ideation

A great product starts with a great concept and initial validation of that concept. This step is arguably the most fun and creative step.

During the concept development stage, you define what you are trying to build by figuring out how well it solves the identified problem, how easy it is to use, what it will cost the customer, the look and feel of the application, and so on.

A key step in this process step is product discovery and a continuation of user research, which enables you to uncover the problems the persona faces and the solution to aim for.

Concept ideation sources can be both external and internal. Externally, market and user research influence concept ideation. Internally, concept ideas originate from sales, customer support, marketing, engineering, designers, user research, executives, and investors.

3. Screening and testing

During screening and testing, the ideas generated during the concept ideation phase are critically evaluated.

The goal is to groom out ideas that are either inconsistent with the product vision , undesirable, and/or impractical.

After evaluation, the next step is to rigorously prioritize ideas . As the Highlander said, “ There can only be one .” This is not to say you should only test one idea; it just means you should pursue the most promising tests first.

There are plenty of prioritization frameworks to choose from with some of the most commonly used include:

Value vs. effort
MoSCoW method
Opportunity scoring

Once you have a prioritized list, you should devise a hypothesis and experiment to verify or disprove it.

In product testing, customers are given an opportunity to try a prototype. This helps you understand whether customers understand the product idea, what they like or dislike about it, and whether they would ultimately buy and use it.

The concept ideation, screening, and testing as a whole are often covered in the Double Diamond approach, which is a design process to help you discover, define, develop and deliver solutions.

4. Introduction and launch

After a few iterations of screening and testing, the new features and usability improvements deemed ready to pursue and develop trickle through and are ready for development and launch.

In this step, the idea is converted into a product. It’s the PM’s job to schedule activities to ensure a successful product launch with a high adoption rate .

When ready, the product is launched and commercialized. If your product planning is sound, it should be poised to compete with existing products and maximize market share and profits.

5. Product lifecycle

After the product is launched, the real fun begins. Now it’s time to measure and analyze usage to gather new insights about whether or not your product launch was successful.

Using these insights, you can modify and enhance the product, introduce new features, improve usability, and help the product move from introduction to growth.

At a certain point, you’ll reach product maturity. The number of customers and sales will stabilize. Eventually, new investments in the product will have a harder time generating additional revenue. It will become increasingly challenging to compete.

Eventually, the product will decline, and the number of customers and sales along with it. This might be due to existing competition or the introduction of new products that are more advanced and better serve the customer’s needs.

Think about how the Walkman was surpassed by the Discman, which was overtaken by the mp3 player, and, eventually, an app on your phone.

6. Sunsetting

When a product is in decline, it’s time to sunset it. Sunsetting is also known as the end of life and usually involves deprecating the product.

Though it might feel difficult to say goodbye to a product that you birthed, nurtured, and watched grow, sunsetting a product is a perfectly natural part of the product lifecycle.

During the sunsetting phase, it is important to be diligent. You should devise a playbook or checklist to ensure all activities, such as communication, code clean-ups, and so on are covered during the end-of-life period.

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How to Describe your Product in a Business Plan

The product or products your business intends to produce or offer will have to be described in the product description section of your business plan. This section of your business plan is meant to explain how your product will stand out from comparable items in the market.

You have to clearly explain its concept, coupled with all aspects of purchasing, manufacturing, packaging, and distribution. You should also identify your suppliers, costs, and how the product you are offering fits into the current market.

Note that the product description in your business plan is more than a simple listing of product features. In this section, you will need to highlight your product’s most unique characteristics that will ensure it stands out in the marketplace and attract buyers who won’t mind paying your price.

Note that a properly written product description in your business plan can entice investors and help your business grow. Make sure you describe what you are offering in layman’s terms, to guarantee that someone who isn’t conversant with your business will grasp and be excited about it.

It may also be necessary to provide some basic background if this is an area or industry that people are not so familiar with. While you write up the Products and Services description section of your business plan, always keep your reader in mind.

What to Include in the Products and Services Description Section of Your Business Plan

Just as was noted above, the products and services section of your business plan will have to explain in detail your product or service, its demand in your market, and how it intends to compete with other businesses selling the same or similar products or services. Nonetheless, the product and services description section of your business plan is expected to include:

The Product or Service Description

It is important the product description section of your business plan clearly explains the concept of your product, coupled with all aspects of purchasing, manufacturing, packaging, and distribution. What are your product and service, and how does it work? How will this product benefit your customers? How do you plan to make it or how do you intend to get it made?

Product Comparison

This section of your business plan will also have to explain how your product compares with similar products in the market. What makes this product or service unique or better than what’s already obtainable in the market? Why would anyone prefer your product or do business with you?

You will need to describe how and why you are competitive. How do you stand out, and why do your business and everything it offers have such a viable chance at succeeding? In talking about your product or service, always try to answer why a client would want it and how it can make their lives better or more profitable?

Accreditations/Intellectual Property

For businesses that have had their product tested by industry experts, you must include this information when describing your product. Don’t forget to highlight any certifications, trademarks, copyrights, or patents.

Have it in mind that these added advantages or achievements can give you and your product an upper hand. Verified patents and trademarks can also heighten the value of your product especially since it shows that only your company can manufacture the product for the life of the patent.

Have it in mind that a product’s life cycle includes the idea, prototype, and expansion stages. If you are still in the idea stage, you must buttress in your description how you intend to get the product made and why your product matters.

If you maybe already have a prototype, outline your plans for evaluating the prototype and manufacturing your product. If your business has been making the product but is looking to expand to keep up with demand, ensure you explain this when describing your product in your business plan.

You will also want to include the cost of your product and how that cost aligns with other comparable products on the market. In very concise detail, explain how you came to this price, including the cost to manufacture, selling price, and profit margin.

Sales and Distribution Strategy

Also, take your time to explain how and where you will sell your product. Have in mind that your options may include online stores, brick-and-mortar locations, and vendors. If you already have vendors selling your product, ensure to note who they are and their locations in this section of your business plan.

Fulfillment

When describing your product in your business plan, it is also important you describe your plan to ensure your product gets to the intended customers. This should include manufacturing details and delivery specifics. If you plan to outsource the production of your goods, don’t forget to note manufacturer specifics such as location and production time. Also, remember to include the approximate delivery times and methods.

Requirements

Will you require any special equipment or technology to provide your product or service? Also explain if any specialized technology, materials, or equipment will be required to manufacture your product.

You will also have to explain your plans for product development and introduction especially as your business grows.

Photos or Brochures

Also, make sure that your potential investors can get a good insight into your product through photos and brochures. Don’t forget that your business plan is expected to have an appendix for photos and brochures. Also, don’t forget to refer to them in the product description section.

Tips for Writing a Product Description

To ensure you describe your product thoroughly, here are some vital tips to guide you;

Always remember the reader. The product description section of your business plan must note your product’s most vital information. Always remember to make this section very easy to read and understand. Consider making it better by leveraging numbered lists and bullets.
Focus on benefits. When describing your product, you must explain how its features can provide value to consumers. Translate your features into benefits, and remember that the aim is to describe how your product or service will be a solution to a problem or improve a client or customer’s life.
Highlight the features of your product or service. To attain substantial success in any business, your business will need the ability to set itself apart from other businesses that offer or sell the same products and services. Take your time to analyze key features, such as price point or level of service, or anything that makes your product unique in the market.
Show off a little. Don’t forget that you are selling a product and also selling yourself as the most viable provider of that product. Ensure to include all vital educational or industry-specific experiences and awards in this section. If you have endorsements or testimonials specific to your product, include them as well.
Show the need for your product. Also make sure you explain how your product will cater to a need or improve life, showing why your product is very necessary to the consumer. This is very pertinent if your product has no current market.

The product and services description section of your business plan is meant to provide the reader with an explicit understanding of why you are in business, what you sell, how you will compete with what’s already available, or how you intend to fill a niche that no one else is currently meeting. Noted above are things you need to consider when creating the product description section of your business plan to ensure that it will indeed grab your readers’ attention.

How to Write the Business Plan Products and Services Section

Get tips on writing the products and services part of your business plan

The Products and Services Section
What to Include
Tips on Writing the Section

The products and services section of your business plan is more than just a list of what your business is going to provide. This section of your business plan should include details about how you'll price products and services, how you'll fulfill orders, and other details that investors need to hear before you can get funding . Learn more below.

Key Takeaways

Business plans include details about products and services you'll offer, including exactly how you plan to market, sell, and deliver on customer orders.
The best business plans are clear and concise.
The products and services section of your plan should show off why your product or service is needed.
The products and services section should also convey the expertise and experience you have to succeed.

Why You Need a Products and Services Section in a Business Plan

The business plan products and services section is the centerpiece of your plan. While other sections of your business plan are important, the products and services section is the essence of your business and the point around which every other part of the business plan is built .

What to Include in a Products and Services Section

The products and services section of your business plan outlines your product or service, why it's needed by your market, and how it will compete with other businesses selling the same or similar products and services.

Your products and services section should include a description of the products or services you are offering or plan to offer (including future products or services). You should explain how your products and services will be priced and a comparison of the products or services your competitors offer in relation to yours.

You should also include the sales literature you plan to use. Detail your marketing materials, and clarify the role your website will play in your sales efforts.

The products and services section will include a paragraph or so on how orders from your customers will be processed or fulfilled, as well as any needs you have to create or deliver your products, such as up-to-date computer equipment. If your process depends on intellectual property or legal issues, such as trademarks , then those need to be addressed.

Tips on Writing the Products and Services Section

This section of your business plan should excite those you're hoping will fund your business or work with you. To that end, here are a few tips to create a products and services section that appeals to the reader.

Indicate Why Your Product or Service Is Needed

Especially if you're venturing into a new concept or invention, or a place where there is no current market, you need to explain the need for your product or service.

Highlight the Features of Your Product or Service

A crucial part of business success is the ability to set yourself apart from other businesses that sell the same or similar products and services. What features, such as price point or level of service, do you offer that are unique to you?

Focus on Benefits

Unique features are important, but even more vital is how those features provide value to consumers. Translate your features (i.e., faster or cheaper) into benefits (i.e., get it now or save money). The goal is to highlight how your product or service will fix a problem or improve a client or customer's life.

Be Clear and Concise

Don't let your business plan get bogged down in too much description and information. Use bullets or numbered lists to quickly and easily highlight important information.

Show Off Expertise, Experience, and Accolades

You not only want to describe your products and services but also share why you're the best person to provide them. Include anything in your education or experience that makes you an expert in this business. If you have testimonials, awards, or endorsements, share those. Finally, if you've applied for a patent, copyright, or trademark, include that as well.

Be the Expert, But Use Layman's Terms

You should know your product, service, and industry well, but don't expect your potential funders and partners to have the same level of knowledge. Assume the reader doesn't know as much as you when you explain what you're offering.

Avoid acronyms and jargon when outlining your products and services.

Indicate What's Special About Your Products or Services

Will you be offering a special guarantee or refund policy? Do you have a quicker or more unique way of delivering your product or service?

Speak to Your Customer

While you don't want to write an advertorial, you do want to be customer-oriented when you write your products and services section.

Examples of a Products and Services Section

The Small Business Administration offers business plan examples that you can draw from to help guide your writing. Here's an example of a products section for someone creating "Wooden Grain Toys."

Wooden Grain Toys will sell wooden toys made from solid hardwoods (maple, beech, birch, cherry, and oak) and steel rivets. The toys are handcrafted and designed for small children to easily use. Our line currently includes the following nine models:

All-Purpose Pick-Up Truck w/movable doors and tailgate
Dump Truck w/functioning dumping mechanism and box
Biplane (two-seater) w/movable propeller
Steam engine with coal tender - additional cars available separately: caboose, flat car w/logs, box car, tank car, coal car
Flat-Bed Truck w/logs

Wooden Grain Toys will offer its products for the following prices:

All-Purpose Pick-Up Truck w/movable doors and tailgate - $25
Dump Truck w/functioning dumping mechanism and box - $30
Biplane (two-seater) w/movable propeller - $20
Additional train cars (single car) - $5
Additional train cars (three cars) - $12
City Bus - $12
Tow Truck - $18
Flat-Bed Truck w/logs - $35
Sports Car - $20
Sedan - $20

What Is Product and Service in a Business Plan?

A products and services section of a business plan clarifies exactly what your business will produce , how much it'll sell for, and other details along those lines.

What Are Examples of Products and Services?

A product or service can be anything a business creates to turn a profit. Some businesses have both products and services. For example, a restaurant's services include cooking for and serving customers. The restaurant's products are the dishes and drinks it creates.

11.4 The Business Plan

Learning objectives.

By the end of this section, you will be able to:

Describe the different purposes of a business plan
Describe and develop the components of a brief business plan
Describe and develop the components of a full business plan

Unlike the brief or lean formats introduced so far, the business plan is a formal document used for the long-range planning of a company’s operation. It typically includes background information, financial information, and a summary of the business. Investors nearly always request a formal business plan because it is an integral part of their evaluation of whether to invest in a company. Although nothing in business is permanent, a business plan typically has components that are more “set in stone” than a business model canvas , which is more commonly used as a first step in the planning process and throughout the early stages of a nascent business. A business plan is likely to describe the business and industry, market strategies, sales potential, and competitive analysis, as well as the company’s long-term goals and objectives. An in-depth formal business plan would follow at later stages after various iterations to business model canvases. The business plan usually projects financial data over a three-year period and is typically required by banks or other investors to secure funding. The business plan is a roadmap for the company to follow over multiple years.

Some entrepreneurs prefer to use the canvas process instead of the business plan, whereas others use a shorter version of the business plan, submitting it to investors after several iterations. There are also entrepreneurs who use the business plan earlier in the entrepreneurial process, either preceding or concurrently with a canvas. For instance, Chris Guillebeau has a one-page business plan template in his book The $100 Startup . 48 His version is basically an extension of a napkin sketch without the detail of a full business plan. As you progress, you can also consider a brief business plan (about two pages)—if you want to support a rapid business launch—and/or a standard business plan.

As with many aspects of entrepreneurship, there are no clear hard and fast rules to achieving entrepreneurial success. You may encounter different people who want different things (canvas, summary, full business plan), and you also have flexibility in following whatever tool works best for you. Like the canvas, the various versions of the business plan are tools that will aid you in your entrepreneurial endeavor.

Business Plan Overview

Most business plans have several distinct sections ( Figure 11.16 ). The business plan can range from a few pages to twenty-five pages or more, depending on the purpose and the intended audience. For our discussion, we’ll describe a brief business plan and a standard business plan. If you are able to successfully design a business model canvas, then you will have the structure for developing a clear business plan that you can submit for financial consideration.

Both types of business plans aim at providing a picture and roadmap to follow from conception to creation. If you opt for the brief business plan, you will focus primarily on articulating a big-picture overview of your business concept.

The full business plan is aimed at executing the vision concept, dealing with the proverbial devil in the details. Developing a full business plan will assist those of you who need a more detailed and structured roadmap, or those of you with little to no background in business. The business planning process includes the business model, a feasibility analysis, and a full business plan, which we will discuss later in this section. Next, we explore how a business plan can meet several different needs.

Purposes of a Business Plan

A business plan can serve many different purposes—some internal, others external. As we discussed previously, you can use a business plan as an internal early planning device, an extension of a napkin sketch, and as a follow-up to one of the canvas tools. A business plan can be an organizational roadmap , that is, an internal planning tool and working plan that you can apply to your business in order to reach your desired goals over the course of several years. The business plan should be written by the owners of the venture, since it forces a firsthand examination of the business operations and allows them to focus on areas that need improvement.

Refer to the business venture throughout the document. Generally speaking, a business plan should not be written in the first person.

A major external purpose for the business plan is as an investment tool that outlines financial projections, becoming a document designed to attract investors. In many instances, a business plan can complement a formal investor’s pitch. In this context, the business plan is a presentation plan, intended for an outside audience that may or may not be familiar with your industry, your business, and your competitors.

You can also use your business plan as a contingency plan by outlining some “what-if” scenarios and exploring how you might respond if these scenarios unfold. Pretty Young Professional launched in November 2010 as an online resource to guide an emerging generation of female leaders. The site focused on recent female college graduates and current students searching for professional roles and those in their first professional roles. It was founded by four friends who were coworkers at the global consultancy firm McKinsey. But after positions and equity were decided among them, fundamental differences of opinion about the direction of the business emerged between two factions, according to the cofounder and former CEO Kathryn Minshew . “I think, naively, we assumed that if we kicked the can down the road on some of those things, we’d be able to sort them out,” Minshew said. Minshew went on to found a different professional site, The Muse , and took much of the editorial team of Pretty Young Professional with her. 49 Whereas greater planning potentially could have prevented the early demise of Pretty Young Professional, a change in planning led to overnight success for Joshua Esnard and The Cut Buddy team. Esnard invented and patented the plastic hair template that he was selling online out of his Fort Lauderdale garage while working a full-time job at Broward College and running a side business. Esnard had hundreds of boxes of Cut Buddies sitting in his home when he changed his marketing plan to enlist companies specializing in making videos go viral. It worked so well that a promotional video for the product garnered 8 million views in hours. The Cut Buddy sold over 4,000 products in a few hours when Esnard only had hundreds remaining. Demand greatly exceeded his supply, so Esnard had to scramble to increase manufacturing and offered customers two-for-one deals to make up for delays. This led to selling 55,000 units, generating $700,000 in sales in 2017. 50 After appearing on Shark Tank and landing a deal with Daymond John that gave the “shark” a 20-percent equity stake in return for $300,000, The Cut Buddy has added new distribution channels to include retail sales along with online commerce. Changing one aspect of a business plan—the marketing plan—yielded success for The Cut Buddy.

Link to Learning

Watch this video of Cut Buddy’s founder, Joshua Esnard, telling his company’s story to learn more.

If you opt for the brief business plan, you will focus primarily on articulating a big-picture overview of your business concept. This version is used to interest potential investors, employees, and other stakeholders, and will include a financial summary “box,” but it must have a disclaimer, and the founder/entrepreneur may need to have the people who receive it sign a nondisclosure agreement (NDA) . The full business plan is aimed at executing the vision concept, providing supporting details, and would be required by financial institutions and others as they formally become stakeholders in the venture. Both are aimed at providing a picture and roadmap to go from conception to creation.

Types of Business Plans

The brief business plan is similar to an extended executive summary from the full business plan. This concise document provides a broad overview of your entrepreneurial concept, your team members, how and why you will execute on your plans, and why you are the ones to do so. You can think of a brief business plan as a scene setter or—since we began this chapter with a film reference—as a trailer to the full movie. The brief business plan is the commercial equivalent to a trailer for Field of Dreams , whereas the full plan is the full-length movie equivalent.

Brief Business Plan or Executive Summary

As the name implies, the brief business plan or executive summary summarizes key elements of the entire business plan, such as the business concept, financial features, and current business position. The executive summary version of the business plan is your opportunity to broadly articulate the overall concept and vision of the company for yourself, for prospective investors, and for current and future employees.

A typical executive summary is generally no longer than a page, but because the brief business plan is essentially an extended executive summary, the executive summary section is vital. This is the “ask” to an investor. You should begin by clearly stating what you are asking for in the summary.

In the business concept phase, you’ll describe the business, its product, and its markets. Describe the customer segment it serves and why your company will hold a competitive advantage. This section may align roughly with the customer segments and value-proposition segments of a canvas.

Next, highlight the important financial features, including sales, profits, cash flows, and return on investment. Like the financial portion of a feasibility analysis, the financial analysis component of a business plan may typically include items like a twelve-month profit and loss projection, a three- or four-year profit and loss projection, a cash-flow projection, a projected balance sheet, and a breakeven calculation. You can explore a feasibility study and financial projections in more depth in the formal business plan. Here, you want to focus on the big picture of your numbers and what they mean.

The current business position section can furnish relevant information about you and your team members and the company at large. This is your opportunity to tell the story of how you formed the company, to describe its legal status (form of operation), and to list the principal players. In one part of the extended executive summary, you can cover your reasons for starting the business: Here is an opportunity to clearly define the needs you think you can meet and perhaps get into the pains and gains of customers. You also can provide a summary of the overall strategic direction in which you intend to take the company. Describe the company’s mission, vision, goals and objectives, overall business model, and value proposition.

Rice University’s Student Business Plan Competition, one of the largest and overall best-regarded graduate school business-plan competitions (see Telling Your Entrepreneurial Story and Pitching the Idea ), requires an executive summary of up to five pages to apply. 51 , 52 Its suggested sections are shown in Table 11.2 .

Are You Ready?

Create a brief business plan.

Fill out a canvas of your choosing for a well-known startup: Uber, Netflix, Dropbox, Etsy, Airbnb, Bird/Lime, Warby Parker, or any of the companies featured throughout this chapter or one of your choice. Then create a brief business plan for that business. See if you can find a version of the company’s actual executive summary, business plan, or canvas. Compare and contrast your vision with what the company has articulated.

These companies are well established but is there a component of what you charted that you would advise the company to change to ensure future viability?
Map out a contingency plan for a “what-if” scenario if one key aspect of the company or the environment it operates in were drastically is altered?

Full Business Plan

Even full business plans can vary in length, scale, and scope. Rice University sets a ten-page cap on business plans submitted for the full competition. The IndUS Entrepreneurs , one of the largest global networks of entrepreneurs, also holds business plan competitions for students through its Tie Young Entrepreneurs program. In contrast, business plans submitted for that competition can usually be up to twenty-five pages. These are just two examples. Some components may differ slightly; common elements are typically found in a formal business plan outline. The next section will provide sample components of a full business plan for a fictional business.

Executive Summary

The executive summary should provide an overview of your business with key points and issues. Because the summary is intended to summarize the entire document, it is most helpful to write this section last, even though it comes first in sequence. The writing in this section should be especially concise. Readers should be able to understand your needs and capabilities at first glance. The section should tell the reader what you want and your “ask” should be explicitly stated in the summary.

Describe your business, its product or service, and the intended customers. Explain what will be sold, who it will be sold to, and what competitive advantages the business has. Table 11.3 shows a sample executive summary for the fictional company La Vida Lola.

Business Description

This section describes the industry, your product, and the business and success factors. It should provide a current outlook as well as future trends and developments. You also should address your company’s mission, vision, goals, and objectives. Summarize your overall strategic direction, your reasons for starting the business, a description of your products and services, your business model, and your company’s value proposition. Consider including the Standard Industrial Classification/North American Industry Classification System (SIC/NAICS) code to specify the industry and insure correct identification. The industry extends beyond where the business is located and operates, and should include national and global dynamics. Table 11.4 shows a sample business description for La Vida Lola.

Industry Analysis and Market Strategies

Here you should define your market in terms of size, structure, growth prospects, trends, and sales potential. You’ll want to include your TAM and forecast the SAM . (Both these terms are discussed in Conducting a Feasibility Analysis .) This is a place to address market segmentation strategies by geography, customer attributes, or product orientation. Describe your positioning relative to your competitors’ in terms of pricing, distribution, promotion plan, and sales potential. Table 11.5 shows an example industry analysis and market strategy for La Vida Lola.

Competitive Analysis

The competitive analysis is a statement of the business strategy as it relates to the competition. You want to be able to identify who are your major competitors and assess what are their market shares, markets served, strategies employed, and expected response to entry? You likely want to conduct a classic SWOT analysis (Strengths Weaknesses Opportunities Threats) and complete a competitive-strength grid or competitive matrix. Outline your company’s competitive strengths relative to those of the competition in regard to product, distribution, pricing, promotion, and advertising. What are your company’s competitive advantages and their likely impacts on its success? The key is to construct it properly for the relevant features/benefits (by weight, according to customers) and how the startup compares to incumbents. The competitive matrix should show clearly how and why the startup has a clear (if not currently measurable) competitive advantage. Some common features in the example include price, benefits, quality, type of features, locations, and distribution/sales. Sample templates are shown in Figure 11.17 and Figure 11.18 . A competitive analysis helps you create a marketing strategy that will identify assets or skills that your competitors are lacking so you can plan to fill those gaps, giving you a distinct competitive advantage. When creating a competitor analysis, it is important to focus on the key features and elements that matter to customers, rather than focusing too heavily on the entrepreneur’s idea and desires.

Operations and Management Plan

In this section, outline how you will manage your company. Describe its organizational structure. Here you can address the form of ownership and, if warranted, include an organizational chart/structure. Highlight the backgrounds, experiences, qualifications, areas of expertise, and roles of members of the management team. This is also the place to mention any other stakeholders, such as a board of directors or advisory board(s), and their relevant relationship to the founder, experience and value to help make the venture successful, and professional service firms providing management support, such as accounting services and legal counsel.

Table 11.6 shows a sample operations and management plan for La Vida Lola.

Marketing Plan

Here you should outline and describe an effective overall marketing strategy for your venture, providing details regarding pricing, promotion, advertising, distribution, media usage, public relations, and a digital presence. Fully describe your sales management plan and the composition of your sales force, along with a comprehensive and detailed budget for the marketing plan. Table 11.7 shows a sample marketing plan for La Vida Lola.

Financial Plan

A financial plan seeks to forecast revenue and expenses; project a financial narrative; and estimate project costs, valuations, and cash flow projections. This section should present an accurate, realistic, and achievable financial plan for your venture (see Entrepreneurial Finance and Accounting for detailed discussions about conducting these projections). Include sales forecasts and income projections, pro forma financial statements ( Building the Entrepreneurial Dream Team , a breakeven analysis, and a capital budget. Identify your possible sources of financing (discussed in Conducting a Feasibility Analysis ). Figure 11.19 shows a template of cash-flow needs for La Vida Lola.

Entrepreneur In Action

Laughing man coffee.

Hugh Jackman ( Figure 11.20 ) may best be known for portraying a comic-book superhero who used his mutant abilities to protect the world from villains. But the Wolverine actor is also working to make the planet a better place for real, not through adamantium claws but through social entrepreneurship.

A love of java jolted Jackman into action in 2009, when he traveled to Ethiopia with a Christian humanitarian group to shoot a documentary about the impact of fair-trade certification on coffee growers there. He decided to launch a business and follow in the footsteps of the late Paul Newman, another famous actor turned philanthropist via food ventures.

Jackman launched Laughing Man Coffee two years later; he sold the line to Keurig in 2015. One Laughing Man Coffee café in New York continues to operate independently, investing its proceeds into charitable programs that support better housing, health, and educational initiatives within fair-trade farming communities. 55 Although the New York location is the only café, the coffee brand is still distributed, with Keurig donating an undisclosed portion of Laughing Man proceeds to those causes (whereas Jackman donates all his profits). The company initially donated its profits to World Vision, the Christian humanitarian group Jackman accompanied in 2009. In 2017, it created the Laughing Man Foundation to be more active with its money management and distribution.

You be the entrepreneur. If you were Jackman, would you have sold the company to Keurig? Why or why not?
Would you have started the Laughing Man Foundation?
What else can Jackman do to aid fair-trade practices for coffee growers?

What Can You Do?

Textbooks for change.

Founded in 2014, Textbooks for Change uses a cross-compensation model, in which one customer segment pays for a product or service, and the profit from that revenue is used to provide the same product or service to another, underserved segment. Textbooks for Change partners with student organizations to collect used college textbooks, some of which are re-sold while others are donated to students in need at underserved universities across the globe. The organization has reused or recycled 250,000 textbooks, providing 220,000 students with access through seven campus partners in East Africa. This B-corp social enterprise tackles a problem and offers a solution that is directly relevant to college students like yourself. Have you observed a problem on your college campus or other campuses that is not being served properly? Could it result in a social enterprise?

Work It Out

Franchisee set out.

A franchisee of East Coast Wings, a chain with dozens of restaurants in the United States, has decided to part ways with the chain. The new store will feature the same basic sports-bar-and-restaurant concept and serve the same basic foods: chicken wings, burgers, sandwiches, and the like. The new restaurant can’t rely on the same distributors and suppliers. A new business plan is needed.

What steps should the new restaurant take to create a new business plan?
Should it attempt to serve the same customers? Why or why not?

This New York Times video, “An Unlikely Business Plan,” describes entrepreneurial resurgence in Detroit, Michigan.

48 Chris Guillebeau. The $100 Startup: Reinvent the Way You Make a Living, Do What You Love, and Create a New Future . New York: Crown Business/Random House, 2012.
49 Jonathan Chan. “What These 4 Startup Case Studies Can Teach You about Failure.” Foundr.com . July 12, 2015. https://foundr.com/4-startup-case-studies-failure/
50 Amy Feldman. “Inventor of the Cut Buddy Paid YouTubers to Spark Sales. He Wasn’t Ready for a Video to Go Viral.” Forbes. February 15, 2017. https://www.forbes.com/sites/forbestreptalks/2017/02/15/inventor-of-the-cut-buddy-paid-youtubers-to-spark-sales-he-wasnt-ready-for-a-video-to-go-viral/#3eb540ce798a
51 Jennifer Post. “National Business Plan Competitions for Entrepreneurs.” Business News Daily . August 30, 2018. https://www.businessnewsdaily.com/6902-business-plan-competitions-entrepreneurs.html
52 “Rice Business Plan Competition, Eligibility Criteria and How to Apply.” Rice Business Plan Competition . March 2020. https://rbpc.rice.edu/sites/g/files/bxs806/f/2020%20RBPC%20Eligibility%20Criteria%20and%20How%20to%20Apply_23Oct19.pdf
53 “Rice Business Plan Competition, Eligibility Criteria and How to Apply.” Rice Business Plan Competition. March 2020. https://rbpc.rice.edu/sites/g/files/bxs806/f/2020%20RBPC%20Eligibility%20Criteria%20and%20How%20to%20Apply_23Oct19.pdf; Based on 2019 RBPC Competition Rules and Format April 4–6, 2019. https://rbpc.rice.edu/sites/g/files/bxs806/f/2019-RBPC-Competition-Rules%20-Format.pdf
54 Foodstart. http://foodstart.com
55 “Hugh Jackman Journey to Starting a Social Enterprise Coffee Company.” Giving Compass. April 8, 2018. https://givingcompass.org/article/hugh-jackman-journey-to-starting-a-social-enterprise-coffee-company/

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Product planning: a 5-step guide for product managers

Markets, customers, and business priorities change so fast they can make a product manager dizzy, and rigid product plans can quickly become irrelevant.

So how can product managers plan, then?

Last updated

Reading time.

Creating flexible product plans that give your team structure and the ability to respond to changing circumstances is an art form.

This guide takes you through five agile product planning steps to help guide your team in developing products that solve users’ most pressing problems.

Note: product planning is an ongoing process rather than a single event. The best use of this guide is to bookmark it and refer back to it as you move between each step in the planning process.

Feel confident in your product plan

Hotjar offers a steady flow of product experience insights to streamline your product planning

The product planning process

Product planning is the process of defining the right product outcomes and creating the right strategic plans to make those outcomes happen. It involves:

Researching to ensure your product goals align with your users’ needs

Creating product vision and roadmap documents

Prioritizing actions and features

Getting stakeholder buy-in

Guiding your product team through development

Flexible product planning is important for setting the right product goals and keeping your team and stakeholders aligned in achieving them. A comprehensive but dynamic product plan is the key to creating products your users love.

Get started with our five-step guide to product planning:

1. Start with the why: understand your purpose

Your company mission and product vision are key touchpoints that should shape your decisions as a product team.

See the overall company and product strategy to inform your product planning process.

It’s important to deeply understand the why of the thing. In our case, for example, we might start with a question like: why is conversational support important to our eDesk customers?

It’s also important to ask: how does this fit in the product, and for whom? What is the ideal user experience? These key questions inform everything else that follows.

Internalize your company mission

Your first step in product planning should be to align your product team objectives with big picture goals.

Dive into your company’s mission statement and make sure everyone on the product team is clear about the product's business goals. This will instill a sense of purpose in your team, which you can use to guide the product planning process.

An organizational culture that helps the product team feel they're impacting the world and contributing to larger goals is a huge motivator.

Bonus reading: learn more about the importance of choosing the right company values and infusing them into your team culture.

Solidify your product vision

Once your company’s overall mission is clear, you need to define a product vision that connects the dots between fulfilling company objectives and meeting user needs.

A strong product vision will give you product planning superpowers.

Make sure you’re guided by the product vision when you ask for stakeholder buy-in and begin to develop your product plan.

Your product vision can help you to make critical decisions like choosing which ideas and initiatives to include in your plan. You can then refer back to the vision throughout the planning process to ensure your team and stakeholders stay aligned.

2. Understand the who: know your customers and market

Every product decision you make will impact your users, so they need to be at front and center in your planning.

Start by taking steps to empathize with your users and customers and understand your market.

Empathize with your customers

Empathizing with your customers and understanding their needs is the foundation of effective product planning.

Study your customers’ motivations, behavior, and goals, and use what you learn to take a user-centric approach to product planning.

If you're using Hotjar: use Hotjar’s Session Recordings to put yourself in your customers’ shoes. Recordings let you track exactly how users experience your product, which will help to guide the next iterations of your product plan.

You can also use recordings to identify which features deliver the intended value and which need improvement—and then plan the necessary changes.

Understand the market

You need to develop a strong understanding of industry and market dynamics to make a product people want and need.

Analyze trends to understand where competitors are spending money, time, investment, and attention, and use this market research to inform your product positioning .

For example, if you're building a platform for virtual courses, your product planning should respond to remote and online learning trends and market expansion. You might identify a need for a digital whiteboard feature, which you should validate with your customers and then incorporate into your planning priorities.

If you're using Hotjar: the Feedback widget is a great way to ask users quick questions to gauge their interest in new features or product experiments.

3. Decide the what: plan user-focused outcomes

The next step involves bringing together everything you’ve learned about your users and business to define product outcomes.

You can’t plan what you don’t define.

Start by understanding what success means for your customers and your business, and then create measurable goals based on meeting user needs.

Identify problems and opportunities

Identify the specific issues users need to solve—and then decide which you’ll focus on.

To help you prioritize, dive deep into product research , and gather product experience insights with tools like Hotjar (👋).

Let’s stick with the example of a remote learning platform. Maybe you’ve assumed the people who sign up for business accounts do so through their company. Your product experience, sales, and support work around that assumption.

But after talking to your customers and watching how they use your platform, you discover that a lot of people signing up for free business trials are actually individual learners unaffiliated with a company.

Now that you’ve identified a key user base—individual learners—find out what they want from your product and what roadblocks they’re experiencing in its current form.

You can then transform user problems into opportunities to deliver value : for example, maybe you should plan to release a version of your software that’s aimed at individual users who want an easy-to-use platform for occasional learning.

Define your product outcomes and how to measure them

Once you’ve mapped out the opportunities your product will target, define your ideal outcomes.

Determine which metrics you’ll use to measure success, and define the measurements that will allow you to quantify outcomes and test progress.

With the above example of non-business users on business trials, you might identify the following outcomes:

Reduce the number of business trial signups by individual learners by 75%

Get 10% of individual-learning users who visit your site to purchase an individual license

Increase the average customer satisfaction score (CSAT) of individual learners by 3 points

Pro tip: use Hotjar to seamlessly integrate CSAT surveys into your site or app. Customers can rate their experience quickly, without leaving your page, and get back to exploring your product.

Prioritize desired outcomes

You’ll identify a lot of desired outcomes during the product planning process, so next, you have to prioritize your product ideas and initiatives.

To manage your product backlog and plan effectively, ask yourself which of these outcomes will have the biggest impact on your customers and business .

Use product prioritization methods like the cost of delay analysis to identify which outcomes you should focus on to minimize revenue loss and maximize profits.

If you're using Hotjar: use Surveys and the Feedback widget —which acts as an on-site suggestion box where users can share their experiences with different features and elements on your site—to collect and analyze customer feedback and test your assumptions against your customers’ needs.

4. Execute the how: develop based on learnings

Product planning doesn’t stop when product execution starts.

Adapt your product development plans along the way depending on the success of your outcomes.

Focus on one thing at a time

Start by taking stock of where you are in relation to your product goals.

Determine a clear set of steps that need to happen to reach the outcomes you’ve prioritized , and try to anticipate potential obstacles and plan around them.

For example, let’s take the previous case where non-business users were signing up for business trials on a virtual learning platform.

Maybe you discover that the reason individual users aren’t purchasing licenses is because there isn’t an easy way for them to do so.

In this case:

Identify your opportunity: individual users on business trials aren’t converting, so they have needs that aren’t being met.

Determine your desired outcomes: these might be to increase conversions, revenue, and customer satisfaction scores.

Identify obstacles: in this case, there isn’t a version of the product available for individual, non-business users.

The next step will be to develop a path for individual users to purchase individual licenses.

Iterate and adapt

For agile product management and planning, keep batch sizes small so you can build, measure, and learn.

Use continuous discovery to stay connected with customers throughout the process and use their input to revise and refine the next steps in your product development plan.

In our example, let’s imagine that after delivering a way for individuals to purchase licenses, the data shows only 2% of individuals actually convert. To decide how to refine your plan, you need to find out why .

By using a learning tool like heatmaps , the product team can see which parts of the site users are clicking on and scrolling past. Maybe you learn users aren’t scrolling down far enough to reach the CTA to purchase—so your next step might be moving the CTA to a more prominent location.

Pro tip: use Hotjar Heatmaps to see which site elements users are engaging with or skipping—then go deeper with Session Recordings , which show you exactly how individual users are experiencing your product.

Hotjar Session Recordings help you go deeper into how users experience your product

5. Communicate the when: focus on results

Your product planning should center on outcomes rather than time-bound outputs. Here’s what to do:

Base your product roadmap on problems, opportunities, and outcomes

One of the biggest mistakes product teams make in roadmap planning is tying specific features to specific deadlines . Of course, you may need to fix tentative release dates, but focusing too much on deadlines in your product plans can block your team’s ability to make adjustments as you learn.

Plan for flexibility : you can’t always know in advance the amount of time and effort it will take to iterate a specific feature.

Make your product roadmap a high-level plan for achieving product goals. Your team should be able to use it as a communication touchpoint and prioritization aid without getting too bogged down in delivery dates.

Take a look at Hotjar’s public product roadmap here for a sense of how we do it.

Create an internal and external communication plan

It’s important to make a plan for communicating your progress to key stakeholders as you iterate, experiment, and learn.

As product manager and entrepreneur Jason Shen emphasizes: "Until you ship, communication is the deliverable."

Product planning is important for teams so that there’s a shared vision of goals. It gives everyone a clearer sense of the process and how they can contribute. Product planning is important for teams so that there’s a shared vision of goals. It gives everyone a clearer sense of the process and how they can contribute.

Plan for cross-functional collaboration touchpoints with other departments as well as external partners and customers.

Key opportunities for internal communication include:

Product updates in company all-hands meetings

Product update summaries on internal communication tools like Slack (check out Hotjar’s Slack integration !)

Holding regular product Q&A sessions to give updates and field questions

Sharing key user insights (with Hotjar Highlights , it’s easy to share an overview of product experience learnings)

Key opportunities for external communication include:

Email newsletters to customers for recent and upcoming releases

Social media posts for recent and upcoming releases

Changelog—either in-product or on a support page (see how Hotjar does it )

Partner-facing Q&A sessions or webinars

Product planning doesn’t have to be overwhelming

Brilliant product planning needs to balance thinking ahead with responding quickly and flexibly to changing markets, business goals, and customer needs.

The best product managers integrate planning into the product workflow so that planning becomes an ongoing process of continuous discovery and communication.

By focusing on outcomes, centering user needs, and adapting plans based on results, you can ensure your product planning leads to delighted users and a motivated product team.

FAQs about product planning

What is the most important step in the product planning process.

The most important step in the product planning process is to set the right outcome goals that align with your company and product vision. The purpose of product planning is to identify the goals and objectives that define success, and how you’ll accomplish them.

How far into the future should my product plan extend?

Your product plan can extend as far into the future as your business and product demand. But if you plan far into the future, your plan may have to rely on assumptions.

In general, specific features and solutions should only be planned out a few months in advance, while problems, outcomes, and opportunities can be planned out up to a year or more in advance.

What’s the difference between product planning and product strategy?

There’s a large degree of overlap between product planning and product strategy. The main difference is that product strategy is longer-term and focuses on the high-level vision and objectives for the product and business. Product planning is a continual process that teams can engage in daily. It’s focused on more immediate and actionable outcomes.

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How to Craft a Detailed Product Description in Business Plan

Table of Contents

A well-written product description in your business plan has the potential to attract investors and aid in the expansion of your company.

In addition to describing your manufactured goods, your product description should emphasize the benefits of the goods. These benefits must align with your business.

This article discusses developing a product description for a business plan and offers writing advice to help you craft your own.

What Is a Product Description in Business Plan?

The product description in the business plan describes all the products the company produces .

A business plan product description describes a product or service, the firm supplying it, the problem it answers, the price, and the target market. Your product description should explain how your products differ from similar ones on the market or why they’re needed if no market exists.

Product descriptions should be factual and not promotional or salesy. As with other business papers, a product description should be in the first person, so it doesn’t appear overly promotional.

A product description in a business plan should be understandable, so the value of your products is clear.

What Does a Product Description Entail?

A product description introduces your product to potential investors and customers. The following items below should be included in the document when presenting your product to potential investors and customers.

1. Features and Benefits of the Product

Describe the features and benefits of your product. If your product addresses a problem for customers, this section should convey that information.

2. Your Product Vs. Competition

Take a look at the competition and see how your product stacks up. Make a case for why your product is better than your competition’s offerings.

3. Price of Product

Include the price of your product and how it compares to other similar products on the market in your pitch. The cost of production, the selling price, and the profit margin all need to be discussed.

4. Trademarks

You should add this information if you’ve had your product tested by professionals in the field. Including any certifications, intellectual property, copyrights, or patents is also a good idea.

These awards and honors bolster your product’s credibility. As a result of being awarded patents and trademarks, your company is the only one that can make this product. This increases the product’s worth.

5. the Life Cycle of the Product

The idea, prototype, and expansion stages are part of a product’s life cycle. If you’re still in the concept stage, use this section to explain how you’ll build the product and why it’s necessary.

If you already have a prototype, discuss how you intend to evaluate it and manufacture your product. Include it here if you have been producing your product but need to grow to meet demand.

6. Distribution and Sales Strategy

Describe your product’s distribution strategy, including how and where it will be sold. Vendors, brick-and-mortar stores, and online retailers are examples of possible sales channels. If you already have a list of suppliers selling your goods, insert their names and addresses here.

7. Product Delivery to Final Consumer

How do you intend to get your product into the hands of your clients? All the manufacturing and shipping details should be included here. Include information on the manufacturer, such as their location and manufacturing time. It is advisable to outsource the production of your goods, including delivery schedules and methods.

8. Resources

Identify any unique equipment, materials, or technology required to produce your product.

9. Future Expansion Projections

As your firm grows, describe your product development and introduction plans.

10. Evidence in the Form of Photos and Brochures

Photos and brochures can help investors visualize your goods. Include pictures and brochures in an appendix to your business plan, but reference them in the product description.

With a business plan product description, you’ll enlighten the reader about the firm, the product, and its market .

A product description tells the reader what the product is. It also explains how it works, how it benefits the company and consumers, and how much it costs.

How to Craft a Detailed Product Description in Business Plan

Abir Ghenaiet

Abir is a data analyst and researcher. Among her interests are artificial intelligence, machine learning, and natural language processing. As a humanitarian and educator, she actively supports women in tech and promotes diversity.

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Industries Overview

Latest articles, us adults are spending more time with digital video and less time with traditional tv, how marketers can do more with less after a rocky earnings season, home depot’s revamped retail media network simplifies campaigns, expands audience, vp says, navigating the digital frontier: strategic insights on tech investments | sponsored content, kids remember seeing ads on youtube over streaming, tiktok, exclusive: instagram's nano-influencers outperform—as do tiktok’s upper echelon of creators, where and how gen alpha consumes content: from youtube to netflix to roblox, a slight increase in minutes per day with media, thanks to another boost for digital, linkedin is testing a tiktok-like short-form video feed to boost user engagement, amazon is a channel beauty brands can’t ignore, about emarketer, guide to social commerce and the evolving path to purchase.

TikTok Shop joins the social commerce boom but Meta is still on top

Powerful data and analysis on nearly every digital topic

Want more research .

The merging of shopping and social media is more than a trend; it’s a response to evolving consumer behavior. Social commerce is fueled by the significant amount of time that consumers spend on social media —US adults will spend 11.4% of their total daily media time and 17.9% of their digital media time with social platforms in 2024, per EMARKETER’s June 2023 forecast.

With social commerce, every interaction on social platforms like TikTok, Facebook, and Instagram is a revenue-driving opportunity without the friction of leaving that digital environment.

In this guide, we’ll explore the state of social commerce , examining the most popular platforms so retailers and advertisers can make the most of this dynamic digital shopping journey.

Want to learn more about social commerce and other retail trends? Sign up for the Retail Daily newsletter.

Overview of social commerce

Social commerce fuses social media with ecommerce, allowing purchases to be made directly within a social platform. Social commerce enables consumers to not only discover products and engage with a brand’s greater community, but also to shop from brands without switching platforms and disrupting the customer experience.

For marketers, the ability to advertise and sell in the same space streamlines the buying journey and gives them access to a host of benefits, including direct access to customers, more transparent return on ad spend, and new opportunities to take advantage of peer recommendations and the creator economy .

Social commerce thrives on inspiration, trends, and generating demand for products users may not have considered. Unlike ecommerce, where people often shop with specific products in mind, social commerce excels in promoting discretionary items like fashion and beauty products.

Who engages in social commerce?

Although early social commerce adopters have included younger generations who are more comfortable with navigating digital spaces, older generations are also embracing it as social media platforms become more user-friendly.

Nearly a quarter (23.1%) of US social buyers are between the ages of 25 and 34, per a September 2023 EMARKETER forecast, and more than two-thirds (66.5%) are under 44.
US digital buyers ages 18 to 34 have made purchases on Instagram (28%), Facebook (26%), and TikTok (22%), per an October 2023 EMARKETER survey conducted by Bizrate Insights.
More than half (53%) of US shoppers ages 18 to 29 planned to use TikTok for holiday shopping in 2023, compared with just 36% of adults overall, according to September 2023 ESW data.

Swayed by endorsements, peer reviews, and social connections, shoppers who follow influencers also make up a large social commerce audience.

A third (33%) of Gen Zers have purchased a product from an influencer-founded brand in the last year, per a November 2023 Morning Consult survey.
Gen Z is more likely than any other generation to purchase a product after watching a review from an influencer they follow, per November 2022 data from Deloitte.

Top social commerce platforms

Major social media platforms have evolved, seamlessly integrating commerce into their core experience. These platforms have not only redefined manners of social interaction—they’ve also established themselves as modern digital storefronts.

social networks where us adults likely to make a purchase

Facebook Marketplace

Facebook leads with the largest number of social commerce buyers, expected to reach 64.6 million in 2024, according to a September 2023 EMARKETER forecast. Its massive user base allows brands to reach a diverse, global audience, while extensive storefront features and insights-collecting capabilities add to a competitive ecosystem for online shopping.

Facebook Marketplace is a dedicated platform for buying and selling secondhand items. Although the platform allows businesses to sell products and place ads, its roots are in local, community-based listings. Marketplace is a major reason why Facebook has such a strong lead in social commerce. In fact, Instagram would take the top spot with the biggest social buyer audience among platforms if Marketplace was excluded from social commerce data, according to third-party research cited in EMARKETER’s Social Commerce Forecast 2023 report.

Facebook Shops

Unlike the peer-to-peer nature of Facebook Marketplace, Facebook Shops enables businesses to set up digital storefronts, where customers can explore and purchase products without leaving the platform.

The storefront functionality allows richer product catalogs, visuals, and descriptions. For immersive, customizable experiences, businesses can also showcase featured products, seasonal collections and launches, promotions, and bundles.

Instagram Shopping

In 2024, Instagram will see 46.8 million US social buyers, per EMARKETER’s September 2023 forecast.

At its core is Instagram Shopping, which allows businesses to tag products in their posts and stories. When users click on a tagged item, they can view product details, prices, and a direct link to make a purchase.

Instagram and Facebook parent Meta is mandating all Meta Shops in the US to use Checkout on Facebook and Instagram in 2024. While frustrations have arisen regarding the in-app checkout tool’s effectiveness among both sellers and buyers, Meta is pushing forward as a way to compensate for the losses incurred due to iOS 14.5 changes, which reduced access to tracking data for advertisers and publishers. By making Checkout mandatory, Meta aims to boost adoption, particularly on Instagram, which plays a vital role in social commerce strategies. This move will also limit consumers’ options, as they won’t have the choice to complete their purchases on a retailer’s website.

TikTok Shop

With its Gen Z stronghold, the TikTok user base alone—which passed 100 million in the US in 2023 (102.3 million), according to EMARKETER’s May 2023 forecast—is enough to make it a competitive social commerce platform. We predict TikTok will reach 107.8 million users in 2024. In 2023, 35.3 million of those users were social buyers; during that time, TikTok gained more shoppers (11.6 million) than the net increase of Facebook, Instagram, and Pinterest combined (6.4 million), per a September 2023 EMARKETER forecast. We predict TikTok will continue adding social buyers in 2024, reaching 40.7 million.

However, uncertainty looms over the viability of the platform’s integrated commerce solution, TikTok Shop , given the slow adoption by US merchants, lukewarm reception to live shopping, and a potential nationwide ban.

TikTok Shop enables brands and creators to offer products directly to their viewers. Starting from short videos or livestreams, TikTok Shop aims to own the full buyer journey. A standout feature is the ability for users to consolidate products from various brands into a single cart and finalize their purchase without navigating away from the app.

The shopping service’s US journey seems to have encountered early turbulence:

TikTok Shop was projected to lose more than $500 million in the US in 2023, per The Information, due to major investments—in its staff, building out a fulfillment network, and seller incentivizations—that hadn’t paid off.
In the summer of 2023, US consumers were spending around $3 million to $4 million per day on TikTok. The platform expected that figure to exceed $10 million by the end of 2023.

Social commerce stats and growth

Continued growth for social shopping is on the horizon, with sales growing well into the double digits through the end of EMARKETER’s forecast period in 2027. Although converting non-buyer social media users into buyers is becoming more challenging, the overall landscape remains robust. One significant trend is the increasing spending per buyer, which is expected to nearly double between 2023 and 2027, per an October 2023 EMARKETER forecast. This is expected to drive most of the sales growth, rather than the acquisition of new buyers.

Shoppers worldwide select channels vs buying

Consumers aren’t sold yet on social commerce.

Almost 4 in 10 shoppers hold back from shopping on social media over concerns about how platforms manage personal data, per a May 2023 PYMNTS.com survey.
Younger consumers don’t want to use a social platform’s in-app checkout tools. In fact, about three-quarters of US social shoppers ages 16 to 24 prefer purchasing through established retailers that handle transactions, shipping, and delivery, per an October 2022 SimplicityDX survey.
UK shoppers have reported counterfeit goods and poor shipping experiences on TikTok Shop, according to the Financial Times, which could trigger more apprehension in other markets.

Still, social commerce is on an upward trajectory.

US retail social commerce sales will pass the $100 billion milestone in 2025, representing a 22.4% growth from the year prior, per EMARKETER’s September 2023 forecast.
In 2024, there will be 110.4 million US social buyers, accounting for 42.0% of all internet users and nearly half (50.3%) of all social media users.
US social commerce sales will claim 6.6% of total ecommerce sales in 2024.
For now, most social commerce transactions take place off platform, by clicking links to retailer product pages.

The rise in new buyers is only marginally ahead of the growth in the total social media user population, resulting in a relatively consistent percentage of users engaging in purchasing activities, holding steady at around 50% through 2027, per a September 2023 forecast.

Marketing strategies for social commerce

User-generated content (UGC) and influencer marketing are two effective strategies that brands can harness to connect with consumers authentically.

UGC is generally created by consumers, showcasing their experiences without direct brand involvement, whereas influencer marketing involves brand collaboration and incentives to ensure the content aligns with the correct messaging and goals.

User-generated content

UGC is a powerful tool that taps into authenticity and trust. Forty-six percent of US consumers are more likely to trust a brand if an online content creator they trust has reviewed it, according to a November 2022 Deloitte survey. Encouraging users to create and share content featuring their experiences with products or services cultivates a sense of community and credibility.

Brands can initiate UGC campaigns, prompting customers to share testimonials, unboxing videos, or creative uses of their purchases. By showcasing real-life experiences, UGC bolsters brand authenticity, fosters engagement, and influences potential buyers’ perceptions positively. Additionally, reposting and engaging with UGC amplifies brand reach while nurturing a loyal and involved customer base.

Influencer marketing

From large, well-known influencers with massive followings to micro-influencers with niche communities, choosing the right person to vouch for your brand can bolster your social commerce investments.

Collaborating with influencers allows brands to tap into their audience and leverage their credibility. Influencers create engaging content, seamlessly integrating product endorsements or reviews into their posts, stories, or videos. These endorsements often resonate deeply with their audience, establishing trust and driving purchasing decisions.

Social commerce trends in 2024 and beyond

Tech innovations, immersive experiences, and retailer collaborations will present new opportunities in the social commerce space.

AI integration

Social platforms are taking advantage of AI to enhance the user experience and streamline product discovery. TikTok’s product identification feature, now in its testing phase, uses AI to suggest similar or relevant items available on its ecommerce marketplace. This new shoppable feature to non-shopping content is TikTok’s attempt at fully embedding commerce into the in-app experience.

In-person events

Events help bridge the gap between the real world and social media, and can help drive user engagement and sales. The Pinterest Predicts pop-up event held in New York City in December 2023 brought to life its anticipated trends, allowing users to draw inspiration for the year ahead and, more importantly, shop.

Retailer partnerships

Retailers are also getting behind social commerce, partnering with streaming platforms to have their products in front of new audiences. Walmart’s holiday-themed romantic comedy “Add to Heart” is its first shoppable video series. Available on Roku, TikTok, and YouTube, the 23-part series integrates 330 shoppable products throughout its plot, creating a new avenue for Walmart to connect with consumers through content.

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How to Measure Product Manager Performance

Product management is a role primarily comprised of soft skills and strategy, which, at first glance, would make it challenging to measure quantifiably. But for a job that is all about moving the needle on vital corporate metrics, there must be some way to measure their performance and put a number on how they’re doing, right?

The benefit of including quantifiable metrics in evaluating a product manager’s performance is, well, immeasurable. When someone tells you “do better on that” or “improve on this,” it helps to know where you’re starting from, and it’s even more helpful to see if you’re making any progress.

Download From Product Manager to Product Leader ➜

A Product Manager Is Not Their Product

When it comes to sizing up their performance, salespeople might be the easiest group within an organization to deal with. You know how much they sold this period, how that compares to the previous one, how it compares to their peers and how it compares to their targets.

Because sales are SO measurable, they have actual numbers to hit, and their compensation is usually directly tied to their job performance. So it’s the ideal situation for measuring product manager performances.

An easy result would be to apply that same rationale to product managers—they’re the “CEO of the product,” so if the product reached the metrics the company set out, then they’re doing a great job. If not, well, it must be the product manager’s fault. But this is highly unfair to the product manager because so many things are beyond their control.

A product manager isn’t writing code, testing products, creating marketing pitches, buying advertising, or actively selling their product. All those things happen downstream from product management, and poor performance by the people handling those tasks can impact whether the product measures up to expectations, falls short, or exceeds them.

Sloppy programming could sink usage while an overachieving sales team could goose adoption. Not to mention the fact that product managers are sometimes given ownership of products either on the decline or still trying to find product-market fit, with their fates largely predetermined before the PM writes their first user story.

Given that a product’s performance is at the whims of so many others, measuring a product manager’s performance must be limited to what they are responsible for and capable of influencing.

Qualitative measures of product manager performance

Numbers aren’t everything, and how others perceive a product manager goes a long way in determining their performance. There are many opportunities to collect this qualitative and anecdotal feedback. First, however, you must be willing to ask for it (and always listen for it in unexpected places).

As a manager, you’ll also need to solicit opinions about product managers from various sources. For example, how is the product manager being viewed during sprint retrospectives? Are they consistently praised, or are they cited as a problem area? Are they proactively supplying tremendous and useful information, or are they a frequent hold-up in the process?

A full 360-degree review is often the best way to see just how effective (or ineffective) your product managers may be. As you speak with colleagues in development, sales, operations, customer service, and the executive team, you’re looking for positives and negatives related to the key traits that matter:

Insight & Analytical Thinking
Thoughtfulness
Attention to Detail
Communication
Customer Centricity
Punctuality

Your 360 degrees shouldn’t stop at the company org chart, either. Talk to some of the customers, strategic partners, and vendors they deal with to see how they’re perceived by outsiders as well.

In short, you want your product manager to be seen as a team player that brings value and professionalism to every interaction, even when their manager isn’t looking over their shoulder.

Quantitative measures of product manager performance

Product managers are generally driven by operational drivers and financial outcomes—speed-to-market, launch, adoption, repeat usage, etc., that lead to increases in revenues, larger margins, and reduced costs. But so many variables can impact those outcomes beyond the actions of an individual product manager.

However, there are activities product managers can be expected to perform that will contribute to those overarching outcomes and are 100% within their control, such as:

Competitive intelligence and analysis updates
Regular updating, presentation, and communication of the product roadmap
Customer visits
Business plan updates and presentations based 100% on data (and not opinion)
Conducting surveys to validate assumptions
SWOT analysis

“They require a product manager to get out from behind their desk and be outside-in focused, and the product manager can control them,” says Paul Young of Product Beautiful. “Activities are a sufficient proxy to measure a market-driven product manager to supplement product-level metrics and understand if a product manager is doing their job – without having to wait two years to find out.”

Work backward from goals

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“It’s important to establish appropriate baseline benchmarks for measuring the success of product management teams,” says Satheesh Nanniyur of Salesforce. “For example: if you task a product manager with improving the availability of a system, help them to define the historical availability and expected results. This context is important to set realistic expectations on success criteria.”

Another product manager-specific area of measurement is specifically around requirements:

How many requirements are being added outside the scope of the project (showing a lack of strategic focus)?
How many are added after the baseline is determined (showing that they didn’t really do all their homework before locking in the release)?
How many requirements must be changed or updated because they were incomplete or inaccurate (indicating sloppiness or missing research)?

One measure that can be applied to nearly any job—and product management is no exception in this case—is meeting agreed-upon deadlines. Whether it’s delivering a requirements document or conducting a release post-mortem, asking product managers to commit to a date for certain activities and then tracking whether they finished things on time is a tangible measure that indicates whether they are responsible and conscientious toward the rest of the team.

Tying a product manager performance at least partially to the overall product performance is legitimate, even given all the caveats previously mentioned. At the end of the day, if the product isn’t hitting its top-level goals, the product manager must share some of the responsibility for that, so basing a portion of their performance on product-level KPIs such as revenue, units, margins, on-time delivery, and market share is fair, as is considering Net Promoter Score as a holistic-yet-measurable metric. But these should never be the sole measure of a product manager’s performance.

Avoiding over-reliance on metrics

As soon as there is a numerical, measurable target to be reached, it’s human nature that employees will alter their behavior to hit this designated goal instead of taking a big-picture approach to the job.

“I’m hesitant to assign numeric goals to my individual product managers,” says Rich Mironov . “If I give bonuses for perfect requirements, I’ll get 100-page MRDs (instead of time spent with customers). But, on the other hand, if I reward pure revenue performance, my folks might spend all of their time on the road (and neglect next quarter’s planning).”

That’s why relying on quantitative measurement should only be a portion of how a product manager is evaluated.

Product management is also one of the most dynamic roles someone can play in an organization, and there’s a high likelihood that the existing plans and strategies when goals were defined will change during the year. Suppose those priority shifts have diverted a product manager to concentrate on other areas and not hit their original targets. In that case, they should be praised for reacting and adjusting and not punished for placing their personal metrics above the company’s needs.

Hopefully, the corporate HR platform and policies can adjust to these on-the-fly moves and retroactively update goals. If not, then a little more vagueness in the initial definition of measures can give managers the flexibility to reward their employees for doing the right thing.

The Journey from Project-Centric to Product-Centric

The journey from a project-centric to product-centric organization is an important one. Learn the initiatives needed to transition your organization.

Incorporating Empathy into Product Management

Effective product managers understand how to incorporate empathy into product management, which allows them to support customers needs.

9 Key Responsibilities of Product Operations

The product operations role alleviates the pressure of developing a product, by providing analytical and data support for the product...

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Refunds for Benefytt customers who paid for health plans and products

Did you pay Benefytt , which also did business as “MyBenefitsKeeper,” for a health plan or product that didn’t deliver the comprehensive insurance coverage the company promised? You might be getting some of your money back.

The FTC will return nearly $100 million dollars to Benefytt customers who paid for health plans the FTC says were falsely marketed as comprehensive health insurance or an “Obamacare” plan under the Affordable Care Act (ACA).

Here’s what to know about refunds:

Customers who paid Benefytt $1,000 or more between 2017 and 2022 will get some money back. Checks will be mailed automatically and should arrive within the next two weeks.
Cash or deposit the check as soon as possible. Refund checks expire after 90 days.
For more information or questions, call the refund administrator, Epiq Systems, at 888-574-3126.
The FTC never requires you to pay money or give account information to cash a refund check. Anyone who contacts you and says they’ll help you file for a refund or get your money back — if you pay them first — is a scammer.

Before you sign up for health coverage or products:

Compare plans, coverage, and prices at a trusted source . HealthCare.gov and state marketplaces are the first stop for information about comprehensive, ACA-compliant health insurance coverage.
Find out more about the seller. Ask for the name of the agent and the agency that's offering you a plan. Search online for the names plus “complaint,” “scam,” or “fraud.” Read what others are saying.
Check with your state insurance commissioner’s office to see if they have a license and find out if there are complaints. If they don’t have a license, what they’re selling is not insurance.

Resist pressure to make a decision on the spot. Legitimate health plans won’t pressure you to make a decision on the spot, and they’ll always give you a chance to compare their plan with other options.

Did you pay Benefytt for a health plan or product? You might be getting a refund. Learn more: ftc.gov/refunds

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I had over $15k in bills that I am being told to pay because they did not pay them and money that I paid towards and beyond the "deductible" for services and then was stuck. I spoke with several attorneys but nobody wanted to discuss.

As much as I appreciate the refund, 124.13. It doesn't touch the amount owed to the hospital. I do believe we still owe 37,000.00. Nor the premiums paid for nothing. The way I see it...is the big wigs of this scam, took our money and spent it on themselves. Sell everything they have and there families have to repay these people us. I'm sick over this debt of ours.

I have given them $15,184.80 in the past 10 years too my benefit keeper. I should be getting a big refund for this scam

ALTTHOUGH IM HAPPY THAT THIS WS NOTICED AND THE COMPANY WAS PUNISHED IT DOESNT MAKE UP FOR THE $10,000 THAT WAS LOST WITH THIS COMPANY IN BOGUS COVERAGES AND CLAIM ...$340 IS WHAT I GOT

IMAGES

Business Buyer Behaviour
7 Effective Product Positioning Strategy
Creating a Strategic Product Plan
Statewide Dual Credit Principles of Marketing, Consumer Behavior
How to Create a Business Plan (7+ Business Plan Templates)
FREE 16+ Sample Product Plan Templates in PDF

VIDEO

What is Business Plan Presentation || Types of Business Plan Presentation
What is Business Plan Presentation || Types of Business Plan Presentation
What is Business Plan Presentation || Types of Business Plan Presentation
What is Business Plan Presentation || Types of Business Plan Presentation
The Business Plan Series: Product or Service Description
Most Innovative Product- Business Plan Presentation

COMMENTS

Products & Services Section in a Business Plan (+ Examples)
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 ...
Product and Service Description in a Business Plan: Complete Guide
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.
Behavioral Product Management
When planning their products, behavioral product managers take into account that people make irrational decisions. Keeping this in mind, they apply psychological research to build products around those irrationalities. The approach also uses psychological principles to guide customers to the behaviors that the PMs wish them to take.
Behavioral Product Management: Product Managers Guide
TL;DR. Behavioral product management (BPM) leverages what we know about human psychology and product usage data to design products that deliver positive user value. BPM focuses on developing products that satisfy user needs and desires and change user behavior. Anticipatory design is the example of the first, while the hook model of the latter.
How to use behavioral design to build better products
2. Reinforcement learning. What it is: Reinforcement learning (or "reward" learning) is a design technique that increases the frequency someone uses your product by providing carefully controlled rewards. How it works: The human brain is hardwired to build habits and learn through reinforcement.
How To Write the Products and Services of a Business Plan
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. Let's Get Started! It's not just a list of what your business is going to produce or provide.
What is a product plan and how to create one in 6 steps
The personas form the basis of user research, which is aimed at understanding potential customers' problems, habits, interests, motivations, and more. 2. Concept ideation. A great product starts with a great concept and initial validation of that concept. This step is arguably the most fun and creative step.
Product Business Plans 101
A product business plan is a document that provides justification for a new product or product release, including the product's potential and the quantifiable risks. The business plan is then used to communicate with leadership and investors so they may be able to decide which ventures to fund and which to delay or terminate.
Product Strategy: What Is it, Benefits & How To Build One?
But typically, successful product strategies are: 1. Driven by vision and purpose. A great product strategy communicates the why behind the product. It offers a clear sense of purpose, outlining how the product makes a difference, who it makes a difference to, and where it will position itself on the market.
A Comprehensive Guide to Product Strategy
Your product strategy is the key to connecting business objectives with the product. Companies have many different types of strategies, all built on one another to align the team properly. Making a great product strategy requires understanding where it sits in the middle of the high-level corporate vision and roadmap initiatives. Vision
How Effective Product Strategy Drives Better Business Goals
This helps business leaders understand the impact of delays or market changes across the entire operation and avoids spreading company resources too thin. An effective product strategy tied to ...
How to Write a Detailed Product Description for a Business Plan
This section of your business plan is meant to explain how your product will stand out from comparable items in the market. You have to clearly explain its concept, coupled with all aspects of purchasing, manufacturing, packaging, and distribution. You should also identify your suppliers, costs, and how the product you are offering fits into ...
How To Write an Effective Business Plan Product Description
Ensure that your product description is easy to understand. Present your product in easy-to-understand terms to give potential partners without industry expertise the ability to see the value in your business plan. Show off a little. Remember that you selling a product and selling yourself as the best provider of that product.
7 Crucial Elements of a New Product Business Plan
2.1 Step One - Research, Research, Research. 2.2 Step Two - Determine Your Plan's Purpose. 2.3 Step Three - Create a Product Profile. 2.4 Step Four - Document Every Aspect of Your Product. 2.5 Step Five - Set Up a Strategic Marketing Plan. 2.6 Step Six - Make Your Product Plan Adaptable for Different Audiences.
How to Write the Business Plan Products and Services Section
How to Write the Business Plan Products and Services Section. Get tips on writing the products and services part of your business plan. By Randy Duermyer. Updated on October 14, 2022. Reviewed by. Thomas J. Catalano. Fact checked by David Rubin. In This Article. The Products and Services Section.
What is a Product Strategy?
A product strategy is a high-level plan describing what a business hopes to accomplish with its product and how it plans to do so. The strategy should answer key questions such as who the product will serve (personas), how it will benefit those personas, and the company's goals for the product throughout its life cycle.
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 ...
11.4 The Business Plan
Create a Brief Business Plan. Fill out a canvas of your choosing for a well-known startup: Uber, Netflix, Dropbox, Etsy, Airbnb, Bird/Lime, Warby Parker, or any of the companies featured throughout this chapter or one of your choice. Then create a brief business plan for that business.
Product Planning Process: a 5-Step Framework
Product planning is the process of defining the right product outcomes and creating the right strategic plans to make those outcomes happen. It involves: Researching to ensure your product goals align with your users' needs. Creating product vision and roadmap documents. Prioritizing actions and features.
How To Build A Successful Product-Based Business, Told By The ...
Focus on your profitable bestseller. There is always a bestseller in the list of products you are selling, but make sure that the bestseller is generating a profit for your business. When you zero ...
How to Craft a Detailed Product Description in Business Plan
Make a case for why your product is better than your competition's offerings. 3. Price of Product. Include the price of your product and how it compares to other similar products on the market in your pitch. The cost of production, the selling price, and the profit margin all need to be discussed. 4.
The Dynamics of Business Behavior: An Evidence-Based Approach to
Discover practical and relevant insights from behavioral science you can apply immediately to manage change in your organization In The Dynamics of Business Behavior: An Evidence-Based Approach to Managing Organizational Change, cognitive neuropsychologist Philip Jordanov and entrepreneur Beirem Ben Barrah deliver an eye-opening new treatment of how to create organizational change with an ...
Social Commerce in 2024: Top Platforms, Trends, & Stats
The merging of shopping and social media is more than a trend; it's a response to evolving consumer behavior. Social commerce is fueled by the significant amount of time that consumers spend on social media—US adults will spend 11.4% of their total daily media time and 17.9% of their digital media time with social platforms in 2024, per EMARKETER's June 2023 forecast.
How to Measure Product Manager Performance
Quantitative measures of product manager performance. Product managers are generally driven by operational drivers and financial outcomes—speed-to-market, launch, adoption, repeat usage, etc., that lead to increases in revenues, larger margins, and reduced costs. But so many variables can impact those outcomes beyond the actions of an ...
Behavior Of The Product In Business Plan Example
Behavior Of The Product In Business Plan Example - 4423 Orders prepared. 1(888)814-4206 1(888)499-5521. Nursing Management Business and Economics Psychology +99. 4.8/5. Nursing Management Business and Economics Education +117. Max Area (sq ft) Nursing Management Business and Economics Education +117.
Refunds for Benefytt customers who paid for health plans and products
When it comes to small business loans, time is money. That was especially true early in the pandemic: when many small businesses were struggling to stay open, and Paycheck Protection Program (PPP) funds were limited.