Setting up an innovation start-up
Create a business plan for innovation start-up
A novel idea is the starting point of every innovative business. An innovation business plan will help you to:
- validate the feasibility of that idea
- evaluate the market potential
- verify that there is a real demand for your product
It can also help provide your innovation start-up with credibility and focus, which is vital if you want to attract investors for your innovation start-up.
Innovative business plan - key elements
Your business plan for innovation should show:
- how you will develop and exploit your invention
- the capability and experience of your team
- how you will finance costs
- how investors will be able to realise their profits
Other key questions that your innovative business plan should answer include:
- What is unique about the innovation and is it protected?
- Who will buy it and why?
- What will it cost to deliver and how much will it sell for?
- What is the competition, and how do you propose to tackle this?
- When will the business start receiving income and when will it break even?
How to structure a business plan for innovation?
A sample business plan structure for innovation start-ups may involve:
- executive summary
- description of a business idea or your business statement
- product or service description, including how you will exploit any new technology or IP
- market analysis, including trends, needs and growth projections
- competitor analysis - looking at their strength and weaknesses, and opportunities
- marketing plan and strategies
- management and operations, including your business' legal and organisational structure
- financial planning and resource requirements
- risk management, covering business, technology or financial risks