The Business Plan

1. The Business Plan

2. Business Plan Mythical status Thousandsofbooks and articles (28.126 booksonAmazon.com!) Hard to predictfuture Toooptimistic OnlyExecSummaryread Living document

3. Whywrite a business plan? • A descriptionofwhatyouwant to achievewithyour business idea, and how • Thinkthrough and formulate all basicfoundations for the business youtry to create, and the plan to execute • Create a living documentthatcan be communicated, discussed and revised

4. What do investors reallywant to know? • The sizeoftheopportunity • Is the business modelgood? • Does it scale? • Is therepain and market pull? • Do you have a unique (unfair) advantage? • Canthesepeople make it happen? • Have youconsideredeverythingthatcangowrong? • Is the timing right? • Hvor er penga?

5. Time to positive cash flow Money Potential reward Time depth of hole

6. Invest in a company – not a feature • The world is changing: • Market • Technology • Ifyoudon’t have a TEAM thatcandevelopthe business withchangingenvironment, you have nothing • Most startupcompaniesthatsucceed, have changedtheir business model 3 times beforefindingtheonethatworks • Arthur Rock: ”I invest in people, not in ideas” • ”Ifyoucanfindgoodpeople, ifthey’rewrongabouttheproduct, they’ll make a switch…” (Nettavisen)

7. William Sahlmann: How to write a Great business plan • Harvard Business Review, 1999 • What investors reallyarelooking for • Nine Questions About the Business Every Business Plan Should Answer • Fourteen "Personal" Questions Every Business Plan Should Answer

8. Sahlmann: 9 questions... Who is the new venture’s customer? How does the customer make decisions about buying this product or service? To what degree is the product or service a compelling purchase for the customer? How will the product or service be priced? How will the venture reach all the identified customer segments? How much does it cost (in time and rexources) to acquire a customer? How much does it cost to produce and deliver the product or service? How much does it cost to support a customer? How easy is it to retain a customer?

9. 14 questions Where are the founders from? Where have they been educated? Where have they worked – and for whom? What have they accomplished – professionally and personally – in the past? What is their reputation in the business community? What experience do they have that is directly relevant to the opportunity they are pursuing? What skills, abilities and knowledge do they have?

10. 14 questions... How realistic are they about the venture’s chances for success and the tribulations it will face? Who else needs to be on the team? Are they prepared to recruit high-quality people? How will they respond to adversity? Do they have the mettle to make the inevitable hard choices that have to be made? How committed are they to this venture? What are their motivations?

11. A business plan is a document that describes the opportunity, product, context, strategy, team, required resources, financial return, and harvest of a business venture. Chapter 7: Venture Creation and the Business plan Technology Ventures: From Idea to Enterprise

12. The key function of writing a plan is to record the opportunity and the solution to the need, and show that solution can be made to be economically favorable within a reasonable period of time Chapter 7: Venture Creation and the Business plan Technology Ventures: From Idea to Enterprise

13. Chapter 7: Venture Creation and the Business plan Technology Ventures: From Idea to Enterprise

14. Porter’s5 forces: McAffee:Complements

15. Chapter 7: Venture Creation and the Business plan Technology Ventures: From Idea to Enterprise

16. Chapter 7: Venture Creation and the Business plan Technology Ventures: From Idea to Enterprise

17. People The Team Capabilities Attitude Reputation The Business Deal Resources Reward, Risks Financial Incentives Physical Ownership Intellectual Harvest Plan Opportunity Customers Strategy Business Model Context: Economy, Regulatory, Industry The business plan serves as the alignment tool for a new business venture. Chapter 7: Venture Creation and the Business plan Technology Ventures: From Idea to Enterprise

18. Entrepreneurs can learn and master a process for building a new venture and they communicate their intentions by writing a business plan. Chapter 7: Venture Creation and the Business plan Technology Ventures: From Idea to Enterprise