Investment assessment to manufacture and sell a new product

[physea]

Hello

Are there any methodologies to assess whether a manufacturer should invest to manufacture and sell a new product?

I am looking for any Frameworks or procedures that could help methodically and systematically assess an investment like this.

 

[CWatters]

It's been a long time but..

Usually you build a spreadsheet/business plan showing when and how much costs/investment would be incurred and when sales/profits or cost savings are likely to be made, perhaps on a month by month basis or yearly for longer projects. By adding suitable running totals you can work out things like when you will break even, when your expenditure will peak and what your return on investment would be by the end of the project or some set time period.

 

[CWatters]

You can find sample business plans here, see under Product Development. I haven't looked to see if they include the spreadsheet used to generate the data and charts in the plan.

http://www.bplans.co.uk/sample_business_plans.cfm

 

[CWatters]

Yes last page (for example page 9 of the soap manufacturers plan) is a sample spreadsheet.