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How to Write a Business Plan – for Small Inventors
Starting a new business based on your new invention? You need to know how to write a business plan. Creating a comprehensive detailed business plan forces you to make the decisions that need to be made, requires you to do your research and determine all those little details that need to be addressed, from the day to day office expenses to the cost of packaging for your invention, product, or service.
You will know what your price structure will be and how your product will be distributed. This is very important information. Your price structure depends on your distribution. Do you sell retail and wholesale? Do you sell to OEMs? How about mail order? You have to have a price structure that will accommodate a number of different prices for different channels of distribution.
By the time you’ve finished your business plan you should have a pretty good idea of all of the expenses involved in your undertaking, including the cost of manufacturing, marketing, the cost of sales, your hard costs, and fixed costs of your product. You will have knowledge about your competition, about the pricing structure for your product, the lines of distribution, cost of advertising for the various types of media campaigns, and even the cost of your product liability insurance.
Will your product need code approvals from Underwriters Laboratories (UL), IAMPMO, NSF, FDA, or one or more of the multitude of such agencies? How much will that cost and what is involved? Your plan will spell it all out.
You’ll know the retail price and the profit you will make, and you will have a timeline to follow. Make your plan concise and professional, and detailed enough to convey a sense of credibility. Get it all down on paper
If you are going to raise money to finance your invention, product, or service company, you will absolutely need a business plan. Potential investors want to see everything down on paper before they will even consider your idea.
In general your business plan should include; a cover sheet, a statement of purpose of the plan, table of contents, a description of the business, marketing – how you plan to market your product or service, your competition – demonstrate a thorough knowledge of your competition, operating procedures – describe how your business will operate, personnel – introduce your key personnel, loan applications – if any, equipment and supply list – list all of your equipment and supplies, Balance sheet, breakeven analysis, spread sheet with cash flow for at least three years – monthly for the first year and quarterly after that, and the assumptions upon which you based your projections.
The specifics of your business plan depend heavily on what type of business you are going to be operating. Whatever kind of business it is, you will find tons of information about how to put a business plan together online. The Small Business Administration has a comprehensive guide.
Just begin a search for business plans and review lots of samples and read the advice that you find, and then get started.
When you run into a problem that is difficult to solve, be glad you found it while doing the plan, not after you are already in business. So the more detail you provide the better off you will be, and the better your credibility.
About the Author
For help with invention ideas, online marketing, prototyping, patenting and more: How to Write a Business Plan Do something with that great novel new idea you’ve got!
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Plan B 1 Black Belt 4:40 2 Table Of Charges 4:41 3 Put Your Weight On It 6:08 4 Boss 7:47 5 Channel 5:18 6 Sleep When Home 7:31 7 Dangler 5:16 8 The Snow Hill 5:41 9 Way It Is 6:49 10 Nekcrik 5:06 11 Doors 7:22… |
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