Now we’re really diving into the core focus and activities of your business.

First, the reader wants to know what it is that your company does. Does it produce a product and/or provide a service?

Businesses tend to be divided into those that focus on delivering a service and those that are focused on a product. Understanding in which camp your business falls can assist you with figuring out how to orient your business.

An example of a product-oriented business is Sharon’s company that has developed a delicious new organic chocolate chip cookie.

On the other hand, Rhonda has a company that helps small businesses tackle their computer problems. Her company provides a service and is not focused on selling or developing a product.

So take a moment to think about your business idea and jot down whether you are more of a “product” or a “service” business.

Now it’s time for you to start describing your product or service. What is it? What does it look like? Why might a customer want to buy it? What purpose or need does it fill?

Going back to Sharon’s company, she might determine that her delicious new organic chocolate chip cookie will be sold in snack packs that contain 2 cookies and easily fits into lunches. After baking cookies in varying sizes, she determines that they will be 6” in diameter as they are less likely to break or crumble at that size. She also thinks that psychologically, the size will be big and small enough to be a “small indulgence”. She thinks her product will fill the needs of a customer who seeks products that are more environmentally sound and potentially more healthy, with fewer additives.

Sharon might want to describe any cookie varieties (with or without nuts, for example), the sizes, and packaging options.

Many entrepreneurs become entranced with either their product or their service. Remember, that just because your business is more product oriented, doesn’t mean you shouldn’t address the service side of things… It’s important to have a strong sense of each and how they complement and interact with each other.

Perhaps Sharon will offer a toll-free line for retailers that sell her cookies. Or maybe she thinks that it’s important to offer a money-back guarantee for purchasers, to encourage them to try the cookie.

Why is this a good idea? Because many companies find themselves strengthened when they offer superior products as well as service.

To investigate this issue, let’s look at the restaurant industry… I think looking at the Soup Nazi episode from the TV show Seinfeld is particularly helpful. The “Soup Nazi” ran a small storefront and made soup that apparently was so delicious, that adults were willing to wait on a long line and get yelled at when buying the soup. Definitely a more product focused business. In this case, the Soup Nazi was able to build up his business due to a superior product. By the end of the episode, one of the characters, Elaine, discovered a stash of the Soup Nazi’s recipes in an antique cabinet.

With the Soup Nazi’s recipes, Elaine had the tools to open up her own store that will sell food that is as equally as delicious as the Soup Nazi. What might set her apart? The service… What if her product was just as good but she was nice to customers? The Soup Nazi might lose many customers.

Remember one of your favorite dining experiences… It probably was the right combination of excellent food, good ambiance and great service. In fact, it was so good, that you recall it now with pleasure. Within your own business, you should aim for the right balance of product and service as well.
So, in an effort to strike the right balance for your business, if you have already described your main “product”, take some time to describe the “service” of your business. Or, if you described your company’s “service”, now describe its “product”. For example, Rhonda might only use premium computer parts in her computer service company.

To help you do this, analyze companies that you enjoy to consistently work with and purchase from. List three companies that you think are good. Underneath each name, list 5 reasons why they make you a satisfied customer. Try to get specific. For example, I really like it when I go to Jay’s Fruits and the cashier says “good morning”. Or, I really like it that when I’m purchasing a MP3 player from Andrea’s Audio, the saleswoman took 10 minutes to explain to me my choices.”

After looking at these other businesses, think about how you might incorporate the same spirit into your own business.