Home: Patents:
Inventors Handbook
D. Commercializing the Idea
The following information relates to commercializing inventions.
Typically, once an invention has been searched, a patent application
can be drafted and filed. In order to commercialize an invention,
it is frequently useful to develop a business plan, obtain financing,
ascertain how the invention is to be sold, and settle on marketing
strategies for the invention.
I. Business Plan
A Business Plan serves both as the resume of a business as well
as its route plan. Business plans are useful in defining a business,
its objectives, mission and goals; serving as the structural framework
on which the business can develop and prosper; serving as a communication
tool for goals and strategies with investors, banks, employees,
suppliers; and measuring, analyzing and reviewing results against
expectations.
A business plan should present relevant information about your business,
including the following:
Executive Summary: Gives a brief but clear picture of the business,
its objectives and strategies. The executive summary should be a
thorough and concise summary of the business plan that prompts readers
to continue through the entire report. Although the executive summary
is the first section, it should be written after completing the
entire business plan.
Statement of Purpose: Expresses the statement of purpose for the
business, along with its mission, vision, objectives and goals.
Corporate Section: Provides details about the incorporation, ownership,
activities, history or start-up plans and any other relevant information
regarding the business.
Product and Service Profile: A short profile of the entire product
and service portfolio.
Market Analysis: Includes information and statistics on target markets,
customer needs, preferences and prevailing trends. Business prospects
and customer bases are profiled and shifting trends or preferences
in the future are analyzed.
Industry Analysis: Covers general and specific information about
the industry. Major competitors in the industry should be profiled
as well as the general outlook for the industry in the near future.
Competitor Analysis: Identify the major competitors in the industry.
Briefly describe the common distribution patterns and pricing policies.
A matrix that compares the cost, features and benefits offered by
the important competitors will clarify these issues.
Technology: Include information on current technologies being used
in the industry, its scope and chances of obsolescence. Describe
emerging technologies, if any.
Strategies: Give specific details regarding marketing strategies,
sales plans and projections. Include relevant details on promotion,
distribution, pricing and positioning strategies.
Responsibilities and Milestones: For each of the plans and tasks
identified in the previous sections, assign individual responsibilities,
set milestone dates, times and budgets. This information can be
included in individual sections.
Management: Profiles management team members along with their areas
of responsibility. List the organizational and operational structure
to be followed.
Financial Analysis: Include projected Profit and Loss and Cash Flow
tables along with Balance Sheets. The break-even analysis and relevant
business ratios will give the plan a considerable edge. These financial
projections are normally done for a period of 3-5 years and can
be split into monthly or quarterly formats. The section should also
give details on major assumptions as well as long term plans.
Funding Requirements: Include funding requirements, if any, possible
sources and likely terms. Discuss the projected return on investment.
Conclusion: A brief statement summing up the business plan.
This structure is just one example of a potential business plan.
Sections may be added or omitted based on the specific needs of
a business. Sample plans and more information are available at the
US Small Business Administration, at www.sba.gov. Professional business
plan writers might also be consulted.
 <
Previous PageNext
Page>
|
|
Helping
Businesses and Entrepreneurs Nationwide
