Manufacturing Strategy
If you'll be building a physical product, then describe how it will be built. Instead of being very general (e.g., "we'll outsource manufacturing") it's much better to be specific ("we're evaluation firms A, B and C -- any of which are capable of manufacturing our product").
Some questions to consider:
- Have you done enough analysis to convince yourself (and an investor) that the product is feasible to manufacture?
- Can the product be manufactured using available equipment and processes, or will new equipment and/or processes have to be invented?
- Have you done enough homework to have a good idea of cost?
- Will manufacturing be done locally? Offshore? Why?
Service Businesses
If you're delivering a service instead of a product, there are still questions about how you will "manufacture" the service. How exactly will the service be developed and delivered?
After-Sale Service and Support
You probably don't have to go into detail in your VC-targetted business plan about your service and support strategy, but you certainly need to think it through and have a strategy and a plan. Service and support will certainly affect your budgeting.
- Is customer training required? How will that be delivered?
- When the product breaks, how will you fix it?
- How will you repair and otherwise support products overseas?
- What spares inventory is required?