"It is not unusual to prepare a business plan before a business's full range of products and services is developed," say Eric. S. Siegel, Brian R. Ford and Jay M. Borstein, authors of The Ernst & Young Business Plan Guide (John Wiley & Sons). "In this light, it is worthwhile to present a summary of the development activities that the company will undertake."
If you have not yet designed and developed your product, this section of the business plan lets you formulate a procedural plan that charts all your product, organizational and marketing development goals; a schedule that associates timelines with the goals in the procedural plan; and a development budget that establishes costs to produce and bring your product or service to market. Those costs should include materials, direct labor, overhead required to operate the business during the development phase, the salaries of executive, administrative and office support personnel, miscellaneous product development costs and capital equipment costs.