Business Model Description

In the business description part of your business plan, you need to indicate the structure of your business organization, whether it’s a

Sole proprietorship
Partnership
Limited liability partnership
Private limited company
Joint venture

Product/Service Description

Depending on the length of your plan, you will need to describe the product/services you intend to sell. Indicate any patent, technology and unique features about your product. Also, potential lenders want to know “why would customers want to buy your product”.

After product/service description, you should also clearly define:

what kind of industry your business belong to
which market segment you will be serving
who are you going to sell your products/services to
What distribution channel you will use to reach your customers

Success Factors

Your business plan must be convincing and it has to illustrate to potential investors/partners what essentially will make your business successful. Some examples of success factors include:

Having a secret recipe for making pizzas
Having exceptional store location
Having a product with unique, patented technology

Article by Byon Ong, Singapore Business Resources for Entrepreneurs

January 2006

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