What Does It Sell?

The purpose of a business is to sell something: a product, a service, or information. In any case, your business plan must explain in detail what kind of product or service you plan to sell. What is it? What makes it unique? How does it compare with your competition? Does the competition dominate your market niche? If so, can a newcomer break into the market? How do you plan to compete? Do you have a competitive advantage? Is your product as good as your competition? Is it better? Why?

You must also look ahead. When you're established in the marketplace, can a new company easily undercut your prices or your earnings with a newer product or service? Do you have a barrier to competition? If so, what is it?