Creation of effective business models is based on our deep understanding of the new venture marketplace.
The importance of a comprehensive, thoughtful business plan cannot be overemphasized.
The business plan serves several purposes. It focuses the management team on why they are in business and what it takes to succeed. It also is the vehicle that describes your concept, product or technology to others and why they will buy it. It outlines how the company will be managed, describes your financial plans and convinces investors to fund the company.
A business plan precisely defines the business of the new venture, identifies its goals, and serves as your firm's resume. The basic components include a description of the product or service. It should discuss the underlying technology only to the extent it supports your argument of why a customer “must have” this product or service. It helps management allocate resources properly, handle unforeseen complications, and make appropriate business decisions. Because it provides specific and organized information about the company and how investors will be rewarded, a good business plan is a crucial part of fund raising.
A good business plan will address the following issues:
At the core of any business plan is an idea: the innovation that makes it a unique and attractive business opportunity. The first step is a thorough description of the innovation, why it is unique, and its potential in the marketplace. This sets the foundation for your business plan.
Market research defines the opportunity and your innovation’s ability to capture it. In addition to establishing the size of the market, the research should also include data about the market’s willingness to accept new technologies. A thorough understanding of customers’ main economic drivers is key to developing an effective marketing plan.
An analysis of the competitive landscape is focused on more than alternative products or services. You should identify the strengths and deficiencies of each competitor’s situation and strategy.
The best business model for the new venture is the one that gives the company its best opportunity to maximize revenue from the new technology or idea. The model must sustain the company’s growth expectations and be supported by the ability of the company to execute it and attract funding.
Critical to every business plan are financial projections that translate the plan into numbers; the language of business. Credible projections are based on realistic and verifiable assumptions that reflect and support the business model.
A business plan is as strong as its authors’ experience, insight, and credibility. Emphasis is placed on each team member’s background, experience, and ability to execute the plan as well as how deficiencies in the team will be overcome.