SmallBusinessNewz

It has been a while, but we are finally getting back to our Business Plan series with two sections: Products and Services and Sales and Marketing. The Products and Services section doesn't need a whole lot of discussion since it is short and self-explanatory. Although the Sales and Marketing section is a bit more complicated as illustrated in the video below, we will try to break it down and not overwhelm you.

The Products and Services section effectively describes the products and services your business offers. This doesn't mean that you have to list each detail about every single product and service your business provides because this section should only be a couple pages long.

Do stress the unique qualities your offerings possess and point out if you have any patents or copyrights. Also include any plans that you might have for product expansion in the future. That basically sums up your Products and Services section.

As we move on to the Sales and Marketing section, know that this portion includes sales strategies, advertising, and a thorough marketing plan. As part of your sales strategy, you have to determine your pricing structure. Make sure you consider factors such as the economy, competition, consumer needs, manufacturing and purchasing costs, manpower and labor involved, location, time, condition of the market, and the demand of your products and services when you set your prices.

After pricing, you need to determine your distribution methods. Most retailers would distribute through in-store, Internet, and catalog sales. On the other hand, a manufacturer may distribute through direct sales or through wholesalers.

Be sure to clarify the transaction process between your business and your customers. It's always a good idea to have your policies laid out before issues come up and your Business Plan is the place to do so. Clearly state your payment methods, return policies, warranties, and customer service guidelines.

On a side note, if your business offers both products and services, explain how you will align them to work together to give you a better return.

The last step of this section is your overall marketing plan. Briefly summarize the current market, target audience, and market research that you laid out in your Market Analysis. You should not spend much time here because (1.) you already discussed it in the Market Analysis, and (2.) you need to spend the majority of your time explaining how you will position your goods and services to best reach your target audience.

Positioning includes advertising and promotions, so you need to identify your advertising and promotional strategies. Since this section should be detailed and lengthy, do not try to withhold any information. The Sales and Marketing division needs to be efficient and demonstrate success since it reflects your business's overall image.