This section should describe whatever protection the product has from competition. If patented, the nature and importance of the patent should be explained. This may involve explaining why a particular patent claim is important to the distinctive features of the product, or why it would be difficult, costly, or time-consuming to engineer around the patent claim. If the protection of the product depends upon trade secrets or copyright protection, that should be explained. Finally, if management knows what the company's next product will be, it should be mentioned here.
Few products dominate a market for long.
Venture capitalists realize this and like to know that management has given some thought to what comes next. This is an important and difficult part of the business plan. Here management must describe in detail why the market for the company's product is such that the company can expect to achieve its sales goals despite the existing competition. It is here that management must explain and justify its choice of marketing strategy. In describing the market, management should identify the major buyers for the company's product.