280 Planning and Forecasting
often require months of development. Discuss what types of features you will
develop and tie them to the firm’s competitive advantage. This section should
also talk about patent, trademark, or copyright efforts if applicable.
Development Strategy
What work remains to be completed? What factors need to come together for
development to be successful? What risks to development does the firm face?
For example, software development is notorious for taking longer and costing
more than most companies originally imagined. Detailing the necessary work
and the criteria for the work to be considered successful helps entrepreneurs to
understand and manage the risks involved. After you have laid out these de-
tails, a development timeline is assembled.
EXHIBIT 9.10b Operating cycle overview diagram.
SOURCE: Adapted from Professor Bob Eng, Babson College.
Order
materials
Receive
materials Make
productPick/ship
productBill to
customerCollect
money
from
customerDaysPay
supplierCustomer
order
receivedOrder
enteredX DaysProduction flowOrderCash