This is an innovative business that deals with the interconnection of objects with the internet. The main goal of doing such a thing is to stop depending on human input to carry out a function. Humans have a limited amount of time to invest in doing these tasks; machines do not have these limitations. If all machines are connected or even certain parts within the machines, and the internet gathers all the data it needs, people’s lives will be radically change as machines could save them precious time. This business plan will provide with all the information you need to successfully run an IoT business.
IoT Business Plan
For an IoT business, almost everybody in the world is and will be a potential customer and consumer. The purpose of implementing this type of technology is to provide people with the ultimate degree of customization by interconnecting every possible item with the internet. An application (device) will be needed so all the objects can be controlled by and through it. Business can come from selling IoT devices, providing the software for handling them or just consulting with businesses who want to implement this technology. This section of the business plan offers information about the business model, how the company woks and its main characteristics.
Even though the IoT business will potentially reach billions of people, there is an urge to identify the first pack of users. Market studies are presented in this section to determine the best market opportunities out there, along with strategies to position your business as a reputed supplier for that market.
The operational side of this plan consists in developing the processes and technologies required to run the business. Depending on the type of IoT business you plan to start, your operations will be entirely different. Here the business plan will outline the main elements including staff required, processes and both physical and digital requirements to get the products and services done.
The key word for promoting this business will be “revolutionary”. What will be sold is not only a new product but also, a lifestyle. Hence, there will be and aggressive approach in promotion, involving all kinds of media, television, radio, written publications, and of course, the internet; the goal is to promote it and inform people on how it works.
The reach of an innovation like this will present itself gradually. Nevertheless, this is a system that will be used by all kinds of people, from the youngest to the oldest. Perhaps at first, it will be harder to use for seniors, but as soon as they see the advantages of having including the IoT technology in their lives they will do their best to get it and adapt to it. In this section of the business plan there is a description of company’s target market and the best ways to reach it.
All sorts of communication channels need to be employed to get the word out. It is important for people to be educated on how to use it, and what it is used for. Advantages must be highlighted on TV and Radio ads, websites and any digital arena out there. Content marketing will be especially important, as blogs and articles will help to get people to buy on the idea.
This business is just taking off, and it is expected to reach 30 billion users by year 2020. In conclusion, IoT will become a multibillion-dollar business in the blink of an eye, and several technological companies such as Hewlett Packard, Google and Amazon, are investing heavily on it. This chapter of the plan presents the financial projections for the IoT business including its revenues, expenses and capital requirements.
In this business model there are two different sources of revenue. First, designing and selling the apps that give “life” to the machines or gadgets. Second, companies might charge subscription fees so they can monitor, (through the application), the performance of all the elements embedded to the IoT system. The extent of these streams will be further explained in this chapter.
Most of the expenses of this business are those related to research and development and hiring highly talented and capable staff. Other expenses included in this section are marketing and advertising expenses, rent and utilities.