Inventor Business Plans
by Nigel Catt Businessplans.com.au
I have a lot of respect for Inventors. They look at life and its inconveniences and see solutions, where most of us just accept that life comes with inconveniences. We are so impressed by inventors we now sponsor the Inventors Association of Australia (Victorian Chapter).
We have dealt with a number of investors over the years and understand the challenges faced by someone with a great invention but limited resources to take it further. In this instance the most important tool an inventor can have in their tool bag (besides a working prototype) is a good business plan.
In this case the business plan is 75% Communication tool and 25% Operational tool. The inventor needs access to resources whether this be direct investment, a strategic partner or even a buyer of the technology.
What is required to achieve any of these outcomes is a business plan that professionally leads the reader through the invention or innovation, the problems is solves and advantages over current technology, your intentions for commercialisation and how the reader can assist.
I’m not a big fan of templates as each business is unique and there can be a multitude of reasons for writing the business plan. In saying that I have listed the main areas that should be covered in the typical Inventor’s Business Plan.
Good luck and please feel free to contact me if you require further assistance.
Inventor’s Business Plan Outline to attract support
A 1 page summary of the key points of the business plan.
• The history of how the inspiration for the invention came about
• Profile of the director/s of the company
• What it is and what it does
• How does it work?
• Are there any reasons why it hasn’t been thought of before now?
• Are there obstacles to manufacturing / distributing / selling the product?
• What problems does the invention solve to the customer?
• What are the advantages over other products or current solutions?
• Who is the target market?
• Market demographics
• What is the potential market size?
• At what stage of development are you at, and how long to completion?
• Overview of company structure
• Financial position of the business
• Relationships in place
• Anything else that shows you have travelled down the path to commercialisation
Normally used as a strategy development tool, however is a good summary of the current position of the business, it includes bullet points of the following:
What is your preferred strategy of commercialising and marketing the invention?
The plan of how you will move from where you are now to the point of commercialisation?
This can change depending on whether you are seeking an investor, strategic partner or buyer.
• The investment required
• The offer to the investor (equity etc)
• Where the funds will be used
• Financial summary
• Minimum 3 years of financial forecasts (cash flow and profit and loss)
• Assumptions financials are based on