It is important to include a section on design and development, as one of the key elements of a business plan, to provide a description about the product’s design and its development with respect to production and marketing to the readers of the plan. A development budget must also be included to show the readers as to how the business aims to reach its goals. Typically, the three areas to be covered in this section are the product, market and organizational development.
This section provides a road map as to how the business is going to ramp up its activities to get to its intended position in the market from where it is now. If a new business is being set up, then the steps that are required to be taken to get it up and running can be provided. If a business is being expanded, then the steps involved in making it grow can be outlined. The steps involved may range from the routine retail space establishment to the critical activities related to getting a patent.
Each of the areas to be dealt with in this section of the elements of a business plan must be examined from the point of view of funding to generating income continuously. The starting point for preparing the design and development plan can be the overall goals of the business that have already been defined in the sections on marketing strategies and competitive analysis. It has to be ensured that the goals are quantified in order to establish time lines and relate it to the success of the business.
It is, therefore, important to incorporate in the design and development section of the elements of a business plan some of the key events that must take place over the next few years for the business to succeed. Some of the activities that can be considered are listed below.
Process and product development: Obtaining intellectual property rights
Launch of marketing activities: such as catalog mailing, advertising, etc.
Strategic alliances: agreements with suppliers or distributors and customers
Product roll out strategies: by region, channel, etc.
Construction of the facility and equipment installation
Hiring of key personnel: such as sales manager, etc.
Funding
The final part in this section of the elements of a business plan can be the budget that is required for development. When drawing out the design and development budget, the business can take into consideration the following aspects:
The raw materials required to develop the product
Direct labor costs
Overheads involved
General and administrative costs
Marketing and sales expenses
Charges to be paid for professional services to technical consultants, lawyers, etc.
Miscellaneous costs
Capital Expenditure
Summarizing, the design and development section, one of the important elements of a business plan, has to be crafted keeping in view the technical, marketing and organizational goals. Organizational goals, typically, revolve around acquisition of right expertise that would enable the business to achieve the technical (product-related) and marketing goals. The presence of expertise in different areas of key assets that provide a competitive advantage to the business is critical to reaching the product to the market.
This section provides a road map as to how the business is going to ramp up its activities to get to its intended position in the market from where it is now. If a new business is being set up, then the steps that are required to be taken to get it up and running can be provided. If a business is being expanded, then the steps involved in making it grow can be outlined. The steps involved may range from the routine retail space establishment to the critical activities related to getting a patent.
Each of the areas to be dealt with in this section of the elements of a business plan must be examined from the point of view of funding to generating income continuously. The starting point for preparing the design and development plan can be the overall goals of the business that have already been defined in the sections on marketing strategies and competitive analysis. It has to be ensured that the goals are quantified in order to establish time lines and relate it to the success of the business.
It is, therefore, important to incorporate in the design and development section of the elements of a business plan some of the key events that must take place over the next few years for the business to succeed. Some of the activities that can be considered are listed below.
Process and product development: Obtaining intellectual property rights
Launch of marketing activities: such as catalog mailing, advertising, etc.
Strategic alliances: agreements with suppliers or distributors and customers
Product roll out strategies: by region, channel, etc.
Construction of the facility and equipment installation
Hiring of key personnel: such as sales manager, etc.
Funding
The final part in this section of the elements of a business plan can be the budget that is required for development. When drawing out the design and development budget, the business can take into consideration the following aspects:
The raw materials required to develop the product
Direct labor costs
Overheads involved
General and administrative costs
Marketing and sales expenses
Charges to be paid for professional services to technical consultants, lawyers, etc.
Miscellaneous costs
Capital Expenditure
Summarizing, the design and development section, one of the important elements of a business plan, has to be crafted keeping in view the technical, marketing and organizational goals. Organizational goals, typically, revolve around acquisition of right expertise that would enable the business to achieve the technical (product-related) and marketing goals. The presence of expertise in different areas of key assets that provide a competitive advantage to the business is critical to reaching the product to the market.
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