Design and development plan section of a business plan talks about the product’s design, development as well as the production process, marketing strategy and the business itself.
In this section of the business plan, you will describe the processes involved in designing and developing your product. If the product is already fully developed, you can skip the development section and talk about the design and how it is going to attract new consumers.
If you plan to improve an existing design of a product, you should mention this in this section. You should also specify if it is completely or partially developed. According to how much more work your product requires before it is ready to be sold, your funding will differ. If you need funding to further develop and design your product, you would mention it here and ask for funds accordingly.
The design section of the plan should also describe the product in terms of manufacturing materials with any related diagrams if applicable.
The development plan generally consists of three areas.
- Product development.
- Market development.
- Organizational development.
You can probably determine from the sub-headings above that the when speaking of the ‘development’ of your business product, you are not to refrain yourself to the physical aspect of the product. Club in a little more information about the potential market. Since developing a product has a lot to do with the demand, this information is vital in gauging the potential of the product.
Sometimes the business product is not a physical product, but a service. In that case, explain the service in similar terms like the benefit derived, the structure behind the service, all the things that you need to set at the backend to provide that service. All businesses, whether involving physical product or service, require investment in hardware and equipment. This too can be a part of your Design and Development Business Plan.
Also consider creating a schedule in your business plan to show that how the product is going to develop over time in the future and what expenditure and marketing strategies are going to be put in place.
This schedule should be tied to a financial budget if the product requires constant input of capital in order to go through its design and development process.