When you’ve decided to either manufacture or sell your invention, you’ll need to establish a solid business plan. This will help when it comes to raising money and bringing on other employees, investors, and consultants. Idea Design Studio breaks down the four main parts of a business plan as they relate to inventors.
- Description of the business – When describing your business, clarify your intentions and goals. Also plan on explaining some simple things like the business type and hours of operation. You’ll want to make sure the legalities are all covered and also describe the invention itself. All the special things you think will appeal to customers should be included in this section as well.
- Marketing Plan – This part can be very straightforward and should include both the advantages and disadvantages of the business. Things like how the business identifies the needs of clients and determines the demand for a product. It also can identify new product areas or potential customers. Identifying disadvantages can help strengthen the overall business plan and prevent faulty marketing decisions from being made.
- Financial Management Plan – This should include information on loan applications, capital equipment, supply lists, balance sheets, and break even analysis. Income projections should include a three-year summary, detailed by month, quarter, and year, and the assumptions on which they were based. Current cash flow records should also be included, reminds the experts at Idea Design Studio.
- Management Plan – Anyone looking at your business plan should be able to tell all the details about your business. When developing your management plan, you’ll want to answer a variety of questions. Some will be related to the duties of each position on the management team and some will be related to the hiring and training procedures. Salaries, benefits, vacations, holidays, and other work related perks should also be included.
Developing a solid business plan helps you and the Idea Design Studio team execute your next step. For more information and assistance in writing the plan, contact Idea Design Studio today.