Try to limit this part to two or three pages as well. Save any space-consuming copies of trademarks, copyrights, patents, and photographs for the back, or make them available on request.
In describing your product, try to be specific and use examples your investors can relate to. Cut out jargon, buzz words, and words that don’t say anything new. Try to be explicit, but don’t go overboard on the detail. Investors only want a general description of your product; they don’t need to know its life-history.
Product uniqueness can be a double-edged sword. On the one hand it means no competition and a wide-open market, but it can also mean a young industry with few suppliers. For instance, if only one company is supplying The Cuddles Teddy Bear Company with glass eyes, and these suppliers go on strike, or have interruptions in their supply of raw materials, or go out of business, then the Cuddles Company is stuck. Try to reduce your reliance on other businesses by having alternatives.
Don’t be afraid to let your investors in on your products vulnerabilities. Products are like humans, and everybody knows we’re not perfect. You’re more likely to win over your investor’s trust by saying, “Our teddy bears still could use a soft thumping sound to replicate mommy’s heartbeat,” than a line like, “Our bears cannot be improved upon.” I don’t recommend you go on and on about your product’s shortcomings, because then your investors will start questioning your product’s worth. A little dose of improvement-needed, however, makes you more real and believable.
Quality is important in everything, and it pays, pays and pays. Rosalind Russell.