What's important in evaluating an invention business plan?
It depends on who is reading it. But whoever reads it, they will want it to be clear and concise with a logical structure.
They're looking for a well thought out plan.
They will focus on your cash flow, market research, strategic implementation, management, and potential for profitability.
Cash flow projections are a good indicator of your management.
Cash flow is not profits but rather when and how you're going to have money coming into the bank faster than it is going out.
If your receivables are 90 days and your accounts payable are 30 days, you have no cash flow and therefore no cash on hand. That's not good.
When someone is evaluating an invention business plan they are looking for strategic implementation. They want to see if you have organizational skills.
Do you assign responsibilities, set targets and track performance. This is why management is very important to investors.
The reader wants to know who is going to implement the strategies that will lead the business to profits.
They want to know if you have knowledge of the industry. If you have the capability or experience to operate a successful venture. If you have the necessary tools and team to make it happen.
Your business plan is like your calling card. It will get you in the door so you can convince others about the viability of your invention.
A business plan, though necessary, is only a way to present information. A new idea is harder to sell than an existing one because people don't understand something new and they are unsure if it will work.
When someone is evaluating a business plan they are looking for credibility, confidence and potential for success.