My super simplified B-Plan

[Doodyps]

I'm going to write a full blown business plan soon (I'm about to speak with a prototype designer on Saturday) but this little .pdf is what I started with.

My idea is for a small (5 inch long), plastic and metal, consumer product. I'll try to sell it myself, with the ultimate goal of licensing it.

The little "capital" bar on the left just shows my target range for startup. My plan is to use $5,000.00 or less initially (prototyping, legal fees/patents, any professional help with business plan) Right now I have $3,000.00 cash and $7,000.00 in stocks. I have more in credit and will be able to raise more from family and friends if my prototype pans out. Hopefully enough to no need to use credit.

I'm willing to pay up to $1,000.00 for a finished prototype, but I think I'll be able to get something for under $600.00.

I read that the minimum cost of a patent is about $1,400.00 and you can expect to pay double whatever your initial costs are again over the next 2-3 years defending it and pushing it though. I work for a large law firm, so I'm going to try to find some pro bono help. I'll have $3,000.00 ready to work with out of my 5K right away.

The professional advice I received came from me emailing a sketch to my friends dad who works in the field my consumer product would address. He said it had a lot of promise.

After prototyping and all other planning activities are dealt with, I will attempt to make some pre-production sales. I just want to have about 100 ordered on the books before ever putting in an order to china or where-ever else I have them made. That may be tough and uneccesary, but I'll try. It may allow me to get a bank loan, which I don't plan on needing, but will be good to have in case of cash flow issues.

Let me know what you all think...or if you have any questions...

[SIMPLEROBB]

I got to be honest......

[Tavarez]

Have anyone on the inside to help you make those first few sales? (If no: reconsider your current priorities)

[Doodyps]

This is an over simplified sketch of a process...it is not an actual business plan. I obviously can't describe my product without any protection. It would hopefully sell for around 8-14 dollars. Not sure what the criticism is since no one has said anything really.

Yes, I have sources of sales pre-production. Whats wrong with the pdf? I mean, I drew it up while I was bored at work. It was never supposed to be super serious and in no way professional. I thought it was helpful to have a little map.

Is it missing steps? Is it somehow completely inaccurate of what should be going on? It is not descriptive of the process of taking an idea to profit?

Is there a more accurate form it should be taking on?

I mean, my idea has received positive feedback from everyone that I have described it too including a man who was president of the Texas ADA (it is dental related).

Should my next step not be to get it prototyped?

[pboychuk]

Should my next step not be to get it prototyped?

Yes, and patent it, than you can talk more freely about the product etc. and test your market, get feedback. I am also working on a prototype and it is very difficult to improve my product when I cant tell anyone about it.

As far as the PDF, I cant really read it so i'll just assume it was a stroke of brilliance

[Doodyps]

Well here it is done in Word. This is more clear. Again, I know it is really overly simplified. that's the point. It is a preliminary road map. I'd like to know what people think: Is it useful? is it just all wrong?

[Shadesz]

You are missing probably the most important aspect of business... marketing and sales.

No matter how good a product you have, or how protected it is... people will not buy it if they do not know about it.

You have two complete systems for creating and protecting an idea, but only two 'afterthought' steps for sales...

"Pre-production sales"
"Begin Normal Cash Flow"

Hardly a good plan to create sales/cashflow. No matter how fine tuned you can make your company / product... if you do not make sales it will die.

Sales do not make themselves.

[Doodyps]

You are missing probably the most important aspect of business... marketing and sales.

No matter how good a product you have, or how protected it is... people will not buy it if they do not know about it.

You have two complete systems for creating and protecting an idea, but only two 'afterthought' steps for sales...

"Pre-production sales"
"Begin Normal Cash Flow"

Hardly a good plan to create sales/cashflow. No matter how fine tuned you can make your company / product... if you do not make sales it will die.

Sales do not make themselves.

You are right. I should have found a place for marketing on there. It's not that I haven't given any thought to it, but I wouldnt be able to fit in on that simple of a plan.

Marketing is something I need to spend a lot more time thinking about. I've been reluctant to put effort into it without a working prototype though. It's too frustrating to try and describe something that doesn't exist to a potential customer.

So far, my only ideas for sales are direct sales to four Dentists I am close too. All are family friends and run very successful practices. One was the man I consulted earlier in my brainstorming. Between them, my family, and my friends (some of whom say they really want one, and some who I will MAKE buy one), I'm very confident I get can my first 100 sold.

After that, It's not practical to think that dentists will want to sell these out of their offices. The initial dentists would more or less be doing me a favor.

I would operate a website (I own the domain name already), so they could refer their patients to it.

Beyond that, I'm at an impasse. Without a working prototype, I feel it's too hard to sell it to anyone.

[Shadesz]

How can you sell it at a health food store?
A grocery store?
Walmart?

How are you going to generate traffic to your site? Dentists only have so many patients, and only a percentage of them will be interested enough to even look at your site. IMO referrals from 4 dentists really isn't a lead generation program at all.

Maybe a program where you donate 10 of them to two new dentists per week and let him try them. Then a week or two later you follow up and provide them with a small and professional window graphic he can put up for his customers to see.

I'm serious about getting it in box stores. Maybe contact the store manager at a local Walmart and have him run a pilot sales program there.

Anyways back to your model... in the innovation stage include another process to determine your target market and the best way to advertise/sale the product. What can you put on the packaging to sell it? Do you have a manufacture? Will your manufacture package it as well?

Anyways I have rambled enough. Take care.

[Gaulkin]

Try and get on QVC first and then sell it to Walmart.

[Doodyps]

How can you sell it at a health food store?
A grocery store?
Walmart?

How are you going to generate traffic to your site? Dentists only have so many patients, and only a percentage of them will be interested enough to even look at your site. IMO referrals from 4 dentists really isn't a lead generation program at all.

Maybe a program where you donate 10 of them to two new dentists per week and let him try them. Then a week or two later you follow up and provide them with a small and professional window graphic he can put up for his customers to see.

I'm serious about getting it in box stores. Maybe contact the store manager at a local Walmart and have him run a pilot sales program there.

Anyways back to your model... in the innovation stage include another process to determine your target market and the best way to advertise/sale the product. What can you put on the packaging to sell it? Do you have a manufacture? Will your manufacture package it as well?

Anyways I have rambled enough. Take care.

Well I appreciate your rambling. That's why I started the thread.

Sure, my long term goal will be to get it in stores, but I've got to show it has some sticking power itself. I wasn't aware that I could talk to a Wal-Mart Manager to get him to carry my product. I thought I would have to find a distributer to get it in a Wal-Mart or CVS. Ultimately, I'd like to license it off.

I have an image in my head for packaging, but that will be reviewed while I consult with my prototyper.

Between the four dentists I know (2 have at least 2 associates under them, so really my 4 dentists is closer to 8), they probably see close to 220 patients a day. That would be just over 3 patients an hour...some of them I know see more like 5 an hour, but I'll stay conservative.

Ideally I would be able to get these dentists to really push my product and let me advertise in their offices. Who know if that would happen. I'm sure they're willing to help me, but only to a point. They would likely generate leads to other dentists. Still, I don't want to be relying on dentists to sell my product. That is just to get off the ground and start to get my product out there.

Getting traffic to the site will be something I deal with later. I don't have a plan for it as of yet, but it is months away. I will start thinking about it once I have the prototype. Any advice here is welcome, but I'm sure I'll be back asking about it later also.

I'm only in the prototyping phase, so I won't contact manufactures until I get the dimensions and process down. I would like to find someone that can package also, but only if it is high quality. I wont skimp on the packaging.

[Doodyps]

I do want to get it in stores or even on tv. I just thought I would need to do the leg work to show that it sells before they would take me seriously.