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Stage – ID4: Demonstrate the Benefits

At this stage evidence needs to be presented that the prototype is viable and meets planned design requirements. Building on this evidence, the business plan needs to be finalized and further funding needs to be sourced.

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Task Overview

Begin finalising your business plan so that you can demonstrate its potential value based upon the impact of the product and the size of its market.

What you need to do:

  • Demonstrate the value increase of your company/project as each milestone is passed, using the plan and financial analyses, such as the discounted cash flow. This provides the main incentive for investors at each stage of development.
  • Consider strategic partners or venture capitalists as alternative sources of investment – each with benefits and drawbacks.
  • Identify and recruit a credible management team to develop the larger business opportunity. It’s not unusual for investors to already have ideas on who these people may be. Typically, this team will supersede the inventor and associates who have managed the business operations thus far.
  • Develop the capacity and capability to manufacture and distribute the product, in association with other commercial partners, to form the complete supply chain for the product.
  • Avoid the ‘invested cost’ temptation of continuing a project just because of money and effort invested. If the product is showing only marginal benefits, looks like it will be too expensive to manufacture, or has hit significant clinical hurdles, then it is best to abandon the project now.