…our solution to the customers problem is…
The Solution is about the Customer
The solution section of the business plan can only come after the customer problem has been defined. Trying to present a solution in search of a problem is a mistake and is a tough sell to present to an investor.
The solution is all about the customer not the product. This is not the place to put all the technical detail about your product, this section is about what you do and how you can solve the problem the customer has.
A good solution normally makes a customers life easier, better, or allows them to do new things; for example, the solution might increase sales, improve efficiency or cut costs. Explain how your solution does this and why your solution is possible and right for today, why it is different than the rest of solutions on the market.
There is no set style for the solution section of the business plan, a few paragraphs together with bullet points should be sufficient to explain what it is you do, the solution you provide, and why it solves the customer problem.
Keep the description simple, if possible tell a story as to how a customer solved their problem using your solution. Avoid technical jargon and highlight the customer benefits not the technical benefits of your solution.
This is part of the Contents of a Business Plan Guide a series of posts on what each section of a simple business plan should include. The next post in this series is presenting the product and technology.
About the Author
Chartered accountant Michael Brown is the founder and CEO of Plan Projections. He has worked as an accountant and consultant for more than 25 years and has built financial models for all types of industries. He has been the CFO or controller of both small and medium sized companies and has run small businesses of his own. He has been a manager and an auditor with Deloitte, a big 4 accountancy firm, and holds a degree from Loughborough University.