Inventors frequently swing to two extremes when it comes to their business plan.
The first one is simply: have idea – get patent – make money. I can’t even tell you how many ways this is a flawed plan. This plan is relevant only in fantasy land and real inventors can’t afford to live in fantasy land. You have no proof of concept, no numbers, no packaging, nothing to sell and no customers.
The other extreme is equally flawed: have idea – buy a piece of business plan software – go to a class – fill in the blanks – make money. It doesn’t matter how much dreaming you do at this extreme, you can’t have accurate numbers without doing the hard work up front. Again you have no proof of concept, no numbers, no packaging, nothing to sell and no customers. With this plan all you are doing is guessing. Real inventors don’t guess.
Honestly, the first stages of inventing do not require a business plan. You have to do your homework first. In fact, unless you are presenting to a bank or an investor, you don’t need a business plan until you are in business. And then, a business plan serves as a road map for you.
A more useful exercise is to develop a marketing plan after you know you have a product. After all, if you can’t sell the product to a consumer, it doesn’t matter how good your business plan is.
The first inventing steps require your time and energy. Do you own searching for like and similar products. Search online, in stores and on the USPTO website. Build a cheap version of a prototype.
The first thing you have to pay for is the professional patent search. All of your business decisions will be based on the results of this search, but that is discussed in another blog.
FYI: You are still a long way from needing a Business Plan.