to easily compare their features against their competition.The most important thing to illustrate in this section of your business plan is how your solution is different or better than other offerings that a potential customer might consider.
Who else is providing solutions to try and solve your customers’ pain points?
What are your competitive advantages over the competition?
Investors will want to know what advantages you have over the competition and how you plan on differentiating yourself..
Competitors may not always come in the form of “direct competition,” which is when you have a competitor offering a similar solution to your offering.
People who read your business plan will already know a little bit about your business because they read your executive summary. For a business with a physical location, perhaps there aren’t any existing solutions within reasonable driving distance.
But this chapter is still hugely important because it’s where you expand on your initial overview, providing more details and answering additional questions that you won’t cover in the executive summary. Defining the problem you are solving for your customers is far and away the most critical element of your business plan and crucial for your business success.
Accommodate your investors, and keep explanations of your product simple and direct, using terms that everyone can understand.
You can always use the appendix of your plan to provide the full specs if needed.
Because your executive summary is such a critical component of your business plan, you’ll want to make sure that it’s as clear and concise as possible.
Cover the key highlights of your business, but don’t into too much detail.