How to Create an Invention Business Plan

invention business plan

Coming up with the idea for a new invention is an exciting time. Sometimes, it seems as though the vocation of being an inventor has gone the way of being a world explorer– no longer exists because everything has been discovered.

However, there’s always something new to experience or learn, especially when it comes to inventing. Once you have that grand idea there’s only one route to take– seeing it come to life. Here’s how to create an invention business plan for your new idea.

Identify the Customer Need

So what’s the first step when you need help with an invention idea? Before you do anything else, sit down and consider who needs this invention. Have you created something that will drastically improve the lives of stay-at-home parents? Have you thought of a technology that would benefit a business? Most importantly, what makes your idea different than the many ideas out there?

It’s really challenging to get a patent. Having these aspects of your idea clearly identified will help during your interaction with a patenting company or lawyer as you work to convince them why you deserve a patent. Of course, you’ll also want a prototype to help.

Prototype Plans

Crafting a prototype is another part of creating an invention business plan that’s often overlooked. The prototype is a strong visual aid when considering the various aspects of selling the finished product. Prototyping also helps provide a preliminary view of how much it will cost to produce this invention.

Creating a prototype and a brief on manufacturing plans will help add merit to the idea when approaching investors in the future. It will also help identify another key consideration: just because an idea is good, doesn’t mean it’s viable in production. NASA might pay for a highly specialized piece of equipment, but unless the mop you’ve invented babysits the children and cooks supper, no one is going to pay three hundred dollars for it. Your prototype plans should evolve into your cost and development plan.

Market Analysis

A market analysis helps inventors evaluate the opportunity and challenges the business will face. This is a time to evaluate not only one’s competition but also oneself. This section will also include a customer demographic profile.

Related: How to Beat Competition in Business? 13 Steps to Beat Your Competition

First, conduct a SWOT analysis to understand the strengths, weaknesses, opportunities, and threats of pursuing this business goal. Take a close look at potential competition in the area, both direct and indirect. Next, look at the best and worst parts of your own business or invention.

Finally, put together a customer profile based on the needs you identified and assess how many people fit that profile that would be interested in your product. This is a good time to play devil’s advocate with yourself.

Marketing Strategy

You’ve already answered most of the 5W questions– you know who you’re selling to, and what and why. You may even have a general idea of where. Now it’s time to consider when and how.

Creating a marketing strategy is how you start to fit all of the pieces together. You know why your customer needs your invention, but how do you convey that information to them? How do you convince a customer that they need it enough to part with their hard earned money?

Drafting a marketing strategy covers everything about promoting a product or service. This could include a launch plan with social media content goals, as well as putting together branding that will help customers connect on an emotional level. Include the cost of your promotional plan and budget accordingly.

A large part of being a successful inventor-turned-business-person is ample amounts of research compiled in a meaningful way. It’s essential to have a strong business plan to convince investors, patent officers, and customers that you’re the real deal.