The following are some ways to address the subject of product development in your business plan:
Describe the R&D requirements fully. If you intend to use funding to complete research & development of your product, your plan should clearly explain this. You should include an R&D plan, budget, key development goals and milestones, and list your schedule for meeting them. The technical risks inherent in your R&D should also be fully explained and, as many new products use recent technological innovations as the cornerstone of their design, describe your reliance on any other “leading edge” technologies.
Assess competing technologies. You should discuss other technologies that will affect your
product, and consider new technologies being developed by others as well as existing technologies. Many executives make the mistake of assuming that their company is the only one working on a new technology.
Explain where the product or service will lead the company. An important area is product
evolution. Investors seldom like to back “one-product” companies. You should explain your
existing products and what new products or services may evolve from your technology, how
you will decide which of them you plan to develop, and when you expect to introduce them.
Explain what is proprietary. Investors are especially interested in knowing how you can delay or even prevent competitors from jumping in once your product or service has shown signs of success. Your business plan should discuss how you propose to protect your idea while it is in the development stage. Is your product or your technology capable of being patented, or can it be protected by copyright? If not, how do you plan to ensure the secrecy of your product or service until it can be developed and marketed? If your product can be patented, how comprehensive will these patents be?
Describe the R&D requirements fully. If you intend to use funding to complete research & development of your product, your plan should clearly explain this. You should include an R&D plan, budget, key development goals and milestones, and list your schedule for meeting them. The technical risks inherent in your R&D should also be fully explained and, as many new products use recent technological innovations as the cornerstone of their design, describe your reliance on any other “leading edge” technologies.
Assess competing technologies. You should discuss other technologies that will affect your
product, and consider new technologies being developed by others as well as existing technologies. Many executives make the mistake of assuming that their company is the only one working on a new technology.
Explain where the product or service will lead the company. An important area is product
evolution. Investors seldom like to back “one-product” companies. You should explain your
existing products and what new products or services may evolve from your technology, how
you will decide which of them you plan to develop, and when you expect to introduce them.
Explain what is proprietary. Investors are especially interested in knowing how you can delay or even prevent competitors from jumping in once your product or service has shown signs of success. Your business plan should discuss how you propose to protect your idea while it is in the development stage. Is your product or your technology capable of being patented, or can it be protected by copyright? If not, how do you plan to ensure the secrecy of your product or service until it can be developed and marketed? If your product can be patented, how comprehensive will these patents be?
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