Invention Business Plan Layout

Your invention business plan layout begins with the name and address of your business and the purpose for establishing your business. The description of your purpose is to establish manufacturing and distribution of your invention.


This section provides information about the inventor and management team. It details experience and especially accomplishments. The key skills in your management must include the ability to sell and the ability to handle finances. It includes an organizational structure, a personnel plan and the fulfillment of any management gaps(people you will need).


This section of your invention business plan describes your invention in terms of features, functions and benefits.

Research and Development

I generally include this section to indicate further developments in the invention or technology that will enable the realization of future products that can be commercially exploited.

Market Research and Analysis

This section is probably the most important section of your invention business plan layout. It is a summary of who will purchase your product and why.

It includes statistics, industry analysis, industry participants, market needs, market trends and buying patterns, market growth, distribution patterns, influencing factors, demographics, competitive comparison analysis, main competing products, market positioning, market segmentation and product advantages.

Strategy and Implementation

This section is probably the second most important section as it describes your strategy on how you're going to be successful.

It is the part of your plan that describes how you are going to implement your strategy.

It includes sales strategies, value propositions, positioning statements, promotional strategies, costing methods, pricing strategies, manufacturing and distribution strategies, supplier strategies, marketing programs and strategic alliances.

Strategic implementation is essentially your response to your market research and analysis.

Think of it in terms of coaching a football team and you have three teams to beat in order to win the Super Bowl. Your market research and analysis is intended to tell you all about the other teams you have to beat. Your strategy and implementation is how you intend to beat them.


This section deals with your financial assumptions. It includes revenue projections, all costs and expenses, key financial indicators, break-even analysis, interest payments, taxes, projected profits and loss, projected cash flow, projected balance sheet, income statement return on investment and shareholder analysis.

This section is supported by spread sheets that are typically projected over a three-year period.

Intellectual Property Protection

This section includes how you intend to deter competition from competing with your invention. It generally includes intellectual property strategies such as patents, trademarks, trade secrets and copyrights, which are intended to limit the competition's ability to use any part of your innovation.


This section indicates any potential risks that may occur and how you would deal with it. An example of this would be a component of your product that may become unavailable because it was discontinued. This indicates that you are very thorough in your thinking about potential liabilities.

Regulatory Issues

This section describes any legislative issues related to your innovation and business. Permits, licenses or certifications that may be mandatory requirements.

Executive Summary

This section is a summary of your invention business plan. It is usually one or two pages in length and functions as a synopsis or cover letter to your business plan.

It highlights the key points of your plan and is intended to sell someone on reading your plan. Most people will read this summary and quickly decide whether they are interested or not.

It should briefly describe your company, your product, the key points of your market analysis, the key points of your strategy, the key points of your management and the keys points of your financial plan.

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