Note that startup businesses face a special challenge when drafting the business background. In the absence of an existing .
business, the background will be couched in terms of what the business will do, not what it has done. This makes it even more .
important to have a clear picture in mind of how your business will look and operate once it's up and running. When you have a track record, it's easy to point at the results you've achieved as an indication of your potential for success. Without any history, you'll have to work a little harder to make sure that you've developed, and presented, a realistic idea of what it will take to make your business work. .
Product or Service Description .
If you have reached the point where you are trying to write a description of what it is that your business actually does or sells, you've probably been thinking about your product or service for quite some time. Now is the time to take a step back and reflect. Because of your familiarity with the idea (after all, it is your idea), you will have to consciously avoid giving it short shrift in your plan. Don't provide needless detail, but remember that the product or service idea you have hasn't been kicking around in the heads of the people who might read your plan. You may have to set the stage a little bit to make sure that a reader understands exactly what your product or service is. .
The starting point is a clear and simple statement of what the product is or what service your business will provide. Avoid the temptation to compare your offering to similar services or products offered by others. Reserve that analysis for the marketing plan, where you will discuss competitors and potential competitors. .
Instead, focus on those factors that make your offering unique and preferable to customers. Explain what it does, how it works, how long it lasts, what options are available, etc. Of particular importance is whether you are selling a stand-alone product (e.
