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v
Contents
Preface vii
1 Entrepreneurs Create the Future 1
2 Before You Start Planning, Ask the Right Questions 25
3 Getting Started 43
4 Industry: Zoom Lens on Opportunity 57
5 Company and Product Description: Selling Your Vision 79
6 Marketing Plan: Reaching the Customer 89
7 Operations and Development: Execution 103
8 Team: The Key to Success 119
9 The Critical Risks and Offering Plan Sections 127
10 Financial Plan: Telling Your Story in Numbers 137
11 Conclusion 157
Appendix 1: Quick Screen Exercise 169
Appendix 2: Business Planning Guide Exercise 173
Appendix 3: Sample Presentation 179
Index 187
About the Author 197
vii
Preface
We have worked with over a thousand students of entrepreneurship,
invested in a score of companies, and created a dozen start-ups. Weve
worked in, consulted for, and advised businesses across several continents
and innumerable industries. Our experiences have brought us a special
appreciation of the value of business planning.
Some people will argue that writing a business plan is time consum-
ing and obsolete the minute it emerges from the printer. They miss the
point. The process of creating the plan is very important. The business
plan isnt just a tool to raise capital; it is a process that helps entrepreneurs
gain deep knowledge about their ideas. The discipline that the planning
process provides helps you assess the nature of the opportunity and cre-
ates a greater ability to shape a business model to exploit it.
Will your business model change once you start the business? Prob-
ably. Going through the business planning process will result in modi-
cations even before you launch the business. But, we guarantee that the
act of business planning will save you countless hours and sums of money
in false starts simply because it will help you anticipate the resources
required and the pitfalls that may arise. Even though business planning
cant help you anticipate every potential problem, the deep learning will
more than offset the cost of writing the plan.
Book Design
This book will illustrate a proven and innovative approach to writing a
business plan. Each chapter will introduce different components of the
viii Preface
planning process. Also, each chapter will illustrate the concepts by high-
lighting Lazybones, an actual company that was planned and launched
and is currently operating. The key feature of this section is the comments
in the margins that point out various aspects of the plan that are good
and others that need work. As you progress through the book, you will
become familiar not only with the process but also with the Lazybones
opportunity.
A word of caution: Your business plan will vary from the Lazybones