What is the Invention Business Plan?
An Invention Business Plan is a feasibility study where the business owners put all the details related to the invention, the market, and the targeted customers.
It’s highly effective for taking a business to the next level and helps establish the purpose of the invention. You’ll be able to see all the information related to your business so you can identify the strengths and the flaws and create strategies based on these.
The structure
The first characteristic of an Invention Business Plan is that it has to be clear and concise, in a way that everybody can read it and understand it.
Cash flow
The main aspect of your plan should be the cash flow projections for your business. If you’re looking for investors, they want to know how is your money going to flow, and they definitely won’t take a risk in a company that has more money coming out than coming in.
You should also include your cost structure including all the expenses you’re expecting to make to run your business.
Market research
You should evaluate your business by conducting a SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats) so you can see the real potential of your invention.
Also, you need to have a customer demographic profile so you can determine how many people will be interested in your product.
Strategic implementation
Once you know what you’re selling, why you’re selling, and who’s going to buy it, you need to make and strategy to consider how and when you’re going to sell your product. This will allow you to fit all the pieces together.
The strategic implementation should include the promotion of your product, the evaluation of your competitors, the operating procedures, the equipment and supply you need, and the organization of the management.
Potential for profitability
The purpose of any Invention Business Plan is to see if the invention has credibility and potential for success.
You can measure this by calculating your revenue projection, and then, you include the expenses, which will give you the net income.
If your business is going to spend more money than what is going to produce, then it doesn’t have the potential for profitability.
With this you can evaluate in which area you can consider cutting the expenses, so you can make your process more effective and less expensive.
RE: Making an Invention Business Plan