How to Write a New Product Business Plan - Sample and Template from OGScapital

 

business plan for a new product

New Product Business Plan Template – Download Now. Simply fill-in the blanks and print in minutes! Instant Access to 1,+ business and legal forms. Download samples of professional document drafts in Word .doc) and Excel .xls) format. What: A template for a Product/Project Business Plan that describes a new project for inclusion in the corporation portfolio of projects. This Business Plan template gives you a consistent and repeatable format for all product or project that are entered and tracked in the company’s Pipeline of projects and products. SAFEassure soap manufacturer business plan executive summary. SAFEassure has designed a new hand-soap product that uses quick-fading dye to help teach and insure proper hand washing practices.


Business Plan for a New Product


From the business plan summary to the exit strategy, Bob Adams takes you through a complete business plan and explains each step.

Throughout the process of creating a business plan, you need to keep in mind its objective. Why are you writing the plan?

Is it to manage the business? Or is it to raise money? A business plan may be an annual plan for managing your business. Or a business plan may be primarily developed for attracting capital.

There are exceptions, and often the difference between annual plans and business plans becomes muddled. Management may use the start-up business plan as a basis for operating the business. When creating your business plan, keep your objectives in mind. Keeping a clear distinction between annual plans and business plans is not important. What is important is keeping the primary objective of and the primary audience for the plan clear. As a rule of thumb, business plan for a new product, if the plan will be used to attract investors or lenders, this is the primary objective and outsiders are the primary audience.

If the plan will help manage the business, this is the primary objective and insiders are the primary audience. Your business plan summary should short and easy to understand. Remember to keep your summary short and easy to understand. Avoid technical jargon and details. Just focus on the key elements that you think will be of most interest to your audience. Skip the pie-in-the-sky profit projections and outlook generalizations. The concept is a clear explanation of your business strategy.

It is not a definition of the business or a summary of its markets but, instead, a quick summary of the one or two key factors that set your business apart from the competition. This section is most appropriate for plans being used to seek financing. Within this section you will describe what stage of development your company is in and what the sought-after financing will be used for. If you are seeking financing, this section of your business plan is particularly important.

There are three basic reasons for seeking outside financing: start-up financing, expansion financing, and work-out financing, business plan for a new product.

Whether or not you receive financing and the terms of that financing will depend upon the stage of development your company is in. The more fully developed your company is, the better your financial arrangements will be. No matter what type of financing you are seeking, business plan for a new product, financiers like to be apprised of the source and amount of any capital that has already been secured. They will expect key executives to have made substantial personal equity investments in the business.

They will feel even more comfortable if they recognize any other investors who may have participated in earlier stages of the financing process. Almost every market business plan for a new product some major and distinctive segments. Even if it is not currently segmented, the probability that it could or will be is great. This is particularly true if the marketplace for your product or service is multiregional or national. If this is the case, segmentation is almost necessary, especially for a small firm, if you hope to be competitive.

You will need to discuss segmentation within your business category and how you intend to cope with any positive or negative effects it may have on your particular business. Almost all markets are segmented by price and quality issues. Generally, however, price and quality do not provide the most clear or definitive market segmentation. Much stronger segmentation can usually be found through an evaluation of product or service uses and their importance to various consumers.

In your business plan you will need to evaluate the typical end users within the market segments you are targeting. There are countless variables to consider when analyzing consumer behavior. Try to focus on behavioral possibilities that will best determine how viable your product will be in your target markets.

Look at:. Identify the market leader and define what makes it successful. Emphasize the characteristics of the firm or offerings that are different than yours. You should also make an attempt to identify business plan for a new product firms that are likely to enter the market or are in the process of developing products or services that will be competitive with those you are offering. You briefly described the key features of your product or service in the concept section of the plan.

In this section you should explore features and benefits in depth. It is essential not only to be clear about the distinguishing features of your product or service but also to delineate any strong consumer benefits.

What makes your product or service significantly better than competitive offerings? In this section you need to do an in-depth analysis of the competitive advantages and weaknesses of your firm. When exploring weaknesses you should include information that will help allay any concerns that may arise as to their ability to significantly hinder your success.

This section is important, especially if your company is a start-up, because you will, typically, be competing with established companies that have inherent advantages, such as financial strength, name recognition, and established distribution channels. Positioning can be thought of as a marketing strategy for your product or service.

Positioning defines how you are going to portray your product to your target market. Your first step is deciding who your target market will be. It will consist of potential customers toward whom you will direct most of your marketing efforts. Often this group will not be the sole or even the largest market for your product, but it will be the market that, based on competitive factors and product benefits, you feel you can most effectively reach.

Start-ups are more likely to be successful if they focus on a highly specific, very narrow target market. General markets are usually dominated by large, well-established firms. Small business plan for a new product should focus on highly specific niches to avoid competing against large, well established companies. Once you have determined who your target market is, you need to decide how you want consumers to perceive your product. If you have a one-product or -service company, your marketing strategy may coincide with your overall business strategy.

Use this section to provide an overview of your general promotional plan. Give a break-out of what methods business plan for a new product media you intend to use and why.

I offer a specific presentation on unique selling propositions. Make sure that your advertising, publicity, and promotional programs sound realistic business plan for a new product on your proposed marketing budget. Effective advertising, generally, relies on message repetition in order to motivate consumers to make a purchase. If you are on a limited budget, it is better to reach fewer, more likely prospects, more often, than too many people occasionally.

For example, if your start-up company is planning on selling products to other businesses in a highly competitive marketplace, your market entry will be easier if you rely on wholesalers or commissioned sales representatives who already have an established presence and reputation in the marketplace.

If your business will be selling high-tech products with a range of customized options, your sales force needs to be extremely knowledgeable and personable. A discussion of research and development is, obviously, not germane to all companies. If it applies, though, financiers are going to want to know that research and development projects are aimed at specific, realistic objectives. Remember that banks generally lend money to businesses on a short-term basis, and venture capitalists and other first-round investors generally want to cash out in just a few years, business plan for a new product.

If the start-up is a manufacturing concern, discuss critical elements of the manufacturing process. For retail businesses, business plan for a new product, discuss store operations, business plan for a new product.

Wholesalers should discuss warehouse operations. In addition to discussing areas that are critical to operations, briefly summarize how major business functions will be carried out and how certain functions may run more effectively than those of your competitors.

The focus here is key people and positions. Primary attention should be on key people who have already committed to joining the firm. Elaborate on their relevant past experience and successes and explain what areas of responsibility they will have in the new company.

Resumes should be included here as part of an appendix or exhibits addendum at the end of the plan. If members will have an active role in running the business, elaborate that role here. If consultants have been engaged for key responsibilities, business plan for a new product, include a description of their backgrounds and functions. Fill as many of your key positions as possible before you seek funding.

Many financiers reject plans if the management team is incomplete. Both debt and equity lenders will want to know how they can expect to receive their investment back and realize interest or profit from the company. Most private investors and venture capitalists will want to be able to exercise a cash-out option within five years. They will be concerned that, even if the company becomes highly profitable, it may be difficult for them to sell out their share at an attractive price.

This concern is particularly true in the case of minority stakeholders. This is why you must provide an exit strategy for investors. Ideally, investors hope a firm will become so successful that it will be able to go public within five years and their shares will become highly liquid investments, trading at a hefty multiple of earnings.

But, often, a more realistic goal is to make the company large and successful enough to business plan for a new product to a larger firm. State what your exit plan is and make sure it seems realistic. Existing businesses should also show historical financial statements, business plan for a new product. How far into the future you need to project and the number of possible scenarios you can anticipate depend on the complexity of the business.

Three business plan for a new product five years for financial projections and three scenarios are typical for a start-up business seeking angel investors. Scenarios should be based on the most likely course your business will take, a weak scenario with sales coming in well under expectation, and a good scenario with projected sales well over expectation.

Pro forma income statements should show sales, cost of operations, and profits on both a monthly and an annual basis for each plan year. For all but the largest businesses, annual pro forma balance sheets are all that are necessary.

 

New Product Business Plan Template – Word & PDF | By Business-in-a-Box

 

business plan for a new product

 

Apr 06,  · This article is part of a series on how to write a great business plan. In the Products and Services section of your business plan, you will clearly describe--yep--the products and services your Author: Jeff Haden. What: A template for a Product/Project Business Plan that describes a new project for inclusion in the corporation portfolio of projects. This Business Plan template gives you a consistent and repeatable format for all product or project that are entered and tracked in the company’s Pipeline of projects and products. SAFEassure soap manufacturer business plan executive summary. SAFEassure has designed a new hand-soap product that uses quick-fading dye to help teach and insure proper hand washing practices.