February 6, 2009, Newsletter Issue #197: Developing Your Design and Development Plan

Tip of the Week

Because your product or process may change frequently to keep up with competitors and rising supply costs, the Design and Development Plan portion of your business plan should be kept up to date and reflect your current development goals.

Just like your marketing plan, your development plan should have a goal. Quantify it and provide as much detail as possible. Maybe you want to find a cheaper way to manufacture your helium balloons. Or increase production of your handmade soaps.

Process: Once you have your goal defined, start your plan with the process. Explain how your product (or service) is produced. Keep in mind, the plan is going to be read by investors, not scientists, so while details are important, write the process at the eighth grade level to make it easy (and interesting) to understand.

Development: This is where you can discuss plans for research and development. How will you continually keep your product relevant and affordable to produce? How often do you assess the product and decide whether or not to make changes?

Investors want to see improvement, not stagnation. If your product hasn’t changed in 20 years, and your margin has been shrinking, you can be assured investors will pass on your plan in favor of one that stays innovative and on the cutting edge.

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