space innovation continues publishing for authors of innovative projects.We already wrote about the fact that two main documents on which work should start this development plan and financial model.Together, they replace such a thing as a business plan that has earned worldwide reputation as a useless document, time-consuming, but it can not withstand a collision with a real market and real customers.But if the business plan is really rather useless, here's plan - something absolutely irreplaceable.
When is planning to engage?The deepest misconception that the plan - this is why the project should begin.This is one of the worst forms of proskrastinatsii founders of the project.Instead of communicating with customers, to establish useful contacts in the future market, or at least build a product - they waste time on useless study of the smallest details of future development.Built large-scale plans, and when someone is hired, calculated future market share and sign a detailed timetable for the development of technology.But the fact is that in the early stages of the plan to build the founders do not have enough information.Therefore, most of the necessary data is taken from the head simply on the basis that "it is logical."But this is precisely the same plan, which falls at the first contact with reality.
Therefore, it is the financial model and road map are the documents that need to founder.Road Map - this is a very large strokes of the future development of the project and is not spent a lot of time.It came to nothing obliges the founder, if it was not raised at the round of investment.In contrast to the roadmap, the financial model - it is a very labor-intensive document.But the financial model can not be built on assumptions.Tough language of numbers and formulas willy nilly forces founders to think where they get the data and get to the real problem: testing of advertising channels, product development and the search for partners.
basis for the financial model are two things: the budget of the project and planned revenues.Calculation of planned revenues is highly dependent on the specifics of the project and for different business models, it will be a hundred percent different.But budgeting project thing quite standard and its preparation usually works on the same scheme:
1) Count all the resources that will be needed project
Each initiative, even a student's circle of interests requires certainresources.For this innovative project will first of all equipment and supplies if they are for research.If the necessary resources will go beyond the available budget, you should consider whether they are necessary and whether it is possible to achieve the same goal by other means.For example, instead of expensive research, you can search for existing publications on these experiences and use them.
At this stage, very easy to make a mistake by listing the most necessary and directly related to the project resources, but at the same time forgetting about the absolutely routine and boring things like office expenses.Which in the future may well grow so that will be buried under all the other needs.
Anyway, you can not foresee everything costs.And even more will not be able to accurately predict their size.Therefore, always make a small margin on top, just in case you were wrong somewhere, and never consider that this list is completely finished, always be ready to revise it if necessary.
2) Make a separate list of variable costs
In addition to these permanent things like space, supplies and wages will always be a so-called variable costs.For example, the need to fly to another city for talks.Or payment of lawyers for the opening of a legal entity.Or the development of the website or the purchase of equipment and furniture for the new office.
3) Divide the resulting lists into the following categories:
- a. technological costs
This includes, above all, the cost of developing the technology.Do not think that these costs simultaneously.Development of technology in innovative projects - is the main activity and it stops only at the time of sale of the project.And only half of the cases.
- b. Administrative expenses
This category includes all expenses for the daily operation of the business: office rent and maintenance, utilities, internet, furniture and necessary equipment, as well as all the other little things without which a company becomes just a handful of people.
- c. Cost of products
addition to technology development, each unit will have its own production costs.Unless you are working in the market of information technologies, but then to have become fundamentally important support costs and the development of the developed product.
If you're working in the real sector and your products have a material embodiment, then do not forget to include in the cost of storage costs and transportation.
- d. Staff costs
People ¾ any business is first and foremost human beings.So do not forget to pay them wages on time.And to calculate the final cost of the contents of every employee do not forget to calculate taxes and deductions to the state funds according to your tax system.
- e. Selling expenses
Firstly, it is the cost of advertising.Because what you have done, you have to sell something to someone.In the future, your planned advertising costs will vary greatly depending on the CAC (customer acquisition cost - consumption of 1 new client), that you receive, so do not try to calculate the exact cost of sales until you get specific indicators.
4) Show get the budget to some market experts
Expert easiest to find on any public platform, such as "Space innovation."This step is necessary to find out whether your chosen industry have any specifics about the costs that you might not have considered.Such specificity may relate to production costs or advertising costs.
Such a big mistake can cost you many hours of work, while a knowledgeable person will tell you it immediately.
Good luck in your endeavors!
