entrepreneurship - how to write a business plan (mckinsey).pdf
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0503
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Ho
w t
o W
rite
a B
usi
nes
s P
lan
Ho
w t
o W
rite
a B
usi
nes
s P
lan
Imp
eria
l Co
lleg
e6
Mar
ch 2
001
Thi
s re
port
is s
olel
y fo
r th
e us
e of
clie
nt p
erso
nnel
. N
o pa
rt o
f it m
ay b
e ci
rcul
ated
, quo
ted,
or
repr
oduc
ed fo
r di
strib
utio
n ou
tsid
e th
e cl
ient
org
aniz
atio
n w
ithou
t prio
r w
ritte
n ap
prov
al fr
om
McK
inse
y &
Com
pany
. Thi
s m
ater
ial w
as u
sed
by M
cKin
sey
& C
ompa
nydu
ring
an o
ral
pres
enta
tion;
it is
not
a c
ompl
ete
reco
rd o
f the
dis
cuss
ion.
En
trep
ren
eurs
hip
Ch
alle
ng
e
0503
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L756
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1 1
Co
nte
nts
Co
nte
nts
•B
usi
nes
s st
art-
up
pro
cess
•W
riti
ng
th
e B
usi
nes
s P
lan
•C
on
stru
ctin
g t
he
team
0503
01LN
ZX
L756
LTD
E-P
1 2
Co
nte
nts
Co
nte
nts
•B
usi
nes
s st
art-
up
pro
cess
•W
riti
ng
th
e B
usi
nes
s P
lan
•C
on
stru
ctin
g t
he
team
0503
01LN
ZX
L756
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1 3
Sta
ges
of
a S
tart
-up
Sta
ges
of
a S
tart
-up
Sta
ge
1S
tag
e 2
Sta
ge
3
Bu
sin
ess
idea
g
ener
atio
n
Bu
sin
ess
pla
n
pre
par
atio
n
Sta
rt-u
p a
nd
g
row
th
Est
ablis
hed
co
mp
any
Inte
rest
of
inve
sto
rs
Fin
anci
ng
d
ecis
ion
Exi
t o
f in
itia
l in
vest
ors
0503
01LN
ZX
L756
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1 4
5 ke
y fa
cto
rs f
or
succ
ess
of
inn
ova
tive
sta
rt-u
ps
5 ke
y fa
cto
rs f
or
succ
ess
of
inn
ova
tive
sta
rt-u
ps
Idea
s•
Deg
ree
of
inn
ova
tio
n•
Sco
pe
•P
aten
t
Tra
dit
ion
al s
ervi
ce p
rovi
der
s•
Att
orn
eys
•P
aten
t la
wye
rs•
Tax
co
nsu
ltan
ts/
acco
un
tan
ts•
Mar
ket
rese
arch
ers
Peo
ple
•In
ven
tors
•E
ntr
epre
neu
rs•
Tea
m m
emb
ers
Cap
ital
•A
vaila
bili
ty/a
mo
un
t•
Nee
ds/
resp
on
sib
iliti
es•
Exi
sts
for
inve
sto
rs
Net
wo
rk &
exc
han
ge
•C
oac
hin
g•
Net
wo
rkin
g•
Mat
chm
akin
g•
Inn
ova
tive
ser
vice
pro
vid
er–
Ven
ture
cap
ital
ists
–H
ead
hu
nte
rs–
Bu
sin
ess
ang
els
–S
tart
-up
co
nsu
ltan
ts
0503
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1 5
Ele
men
ts o
f a
pro
mis
ing
bu
sin
ess
idea
Ele
men
ts o
f a
pro
mis
ing
bu
sin
ess
idea
CL
EA
R
CU
ST
OM
ER
V
AL
UE
MA
RK
ET
OF
A
DE
QU
AT
ES
IZE
FE
AS
IBIL
ITY
AN
D
PR
OF
ITA
BIL
ITY
Su
cces
sfu
l id
eas
dem
onst
rate
how
big
th
e m
arke
t is
, th
e ta
rget
cu
sto
mer
s an
d h
ow
th
e p
rodu
ct d
iffe
rs f
rom
th
e co
mp
etit
ion
SU
FF
ICIE
NT
D
EG
RE
E O
F
INN
OV
AT
ION
Cre
ate
a n
ew p
rod
uct
or
a n
ew w
ay o
f d
eliv
erin
g an
exi
stin
g p
rod
uct
–d
o bo
th a
nd
crea
te a
new
in
du
stry
Idea
s sh
ould
be
feas
ible
w
ith
real
isti
c ti
me
and
reso
urc
e p
lan
s
Th
e ke
y to
su
cces
s is
sa
tisf
ied
cust
om
ers,
no
t a
gre
at p
rod
uct
“Th
ere
is n
oth
ing
in t
he
wo
rld
as
pow
erfu
l th
an a
n id
ea w
ho
se t
ime
has
co
me”
Vic
tor
Hu
go
0503
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Inn
ova
tio
n c
lass
ific
atio
n s
chem
eIn
no
vati
on
cla
ssif
icat
ion
sch
eme
New
pro
du
ct
•M
icro
soft
New
ind
ust
ry
•N
etsc
ape
Exi
stin
g in
du
stry
•S
kille
d t
rad
es
•E
ng
inee
rin
go
ffic
es
New
bu
sin
ess
syst
em
•D
ell
Co
nve
nti
on
Inn
ova
tio
n
Bu
sin
ess
syst
em
ConventionInnovation
Product/service
0503
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Ro
le o
f tr
adit
ion
al s
ervi
ce p
rovi
der
sR
ole
of
trad
itio
nal
ser
vice
pro
vid
ers
Pat
ent
law
yers
Tax
co
nsu
ltan
ts
Mar
ket
rese
arch
ers
PA
TE
NT
S
TA
X
MA
RK
ET
R
ES
EA
RC
H
Pro
fess
ion
al a
dvi
sors
can
hel
p t
o
clea
r h
urd
les
Lo
ng
te
rm
succ
ess
0503
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Ro
le o
f a
ven
ture
-ca
pit
al c
om
pan
yR
ole
of
a ve
ntu
re-c
ap
ital
co
mp
any
£££
•IP
O (
Init
ial P
ub
lic
Off
erin
g)
•S
ale
of
stak
e to
th
ird
par
ties
•S
eed
cap
ital
(p
re
star
t-u
p)
•S
tart
-up
cap
ital
(at
o
r sh
ort
ly b
efo
re
star
t-u
p)
•E
xpan
sion
cap
ital
•Y
oung
, gro
win
g co
mp
anie
s
Cap
ital
reco
very
Inve
stm
ents
5–8
year
s po
stS
tart
-up
0503
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Co
llect
ive
team
str
eng
thC
olle
ctiv
e te
am s
tren
gth
Wel
l co
nst
ruct
ed t
eam
s p
rovi
de
a st
ron
g b
asis
fo
r su
cces
s
Tea
mm
emb
ersIn
ven
tors
En
trep
ren
eurs
Tea
mm
emb
ers
Fin
ance
SU
CC
ES
S
0503
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10
Net
wo
rk s
up
po
rtN
etw
ork
su
pp
ort
ST
AR
T-U
P
Ven
ture
cap
ital
ists
Fri
end
s
Sp
on
sors
Oth
erst
art-
up
s
Ser
vice
pro
vid
ers
Pee
rs
En
trep
ren
eurs
Aca
dem
ics
Use
all
con
nec
tio
ns
0503
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11
Co
nte
nts
Co
nte
nts
•B
usi
nes
s st
art-
up
pro
cess
•W
riti
ng
th
e B
usi
nes
s P
lan
•C
on
stru
ctin
g t
he
team
0503
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12
“Wri
tin
g a
Bu
sin
ess
Pla
n fo
rces
you
in
to d
isci
plin
ed t
hin
kin
g, i
f yo
u do
an
inte
llect
ual
ly h
on
est
job
. A
n id
ea m
ay
soun
d g
reat
, bu
t w
hen
you
pu
t d
ow
n al
l th
e d
etai
ls a
nd
num
ber
s, it
may
fal
l ap
art” E
ug
ene
Kle
iner
, Ven
ture
Cap
ital
ist
0503
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13
Ch
arac
teri
stic
s o
f a
succ
essf
ul B
usi
nes
s P
lan
Ch
arac
teri
stic
s o
f a
succ
essf
ul B
usi
nes
s P
lan
Yo
ur
calli
ng
car
d
Th
e d
ocu
men
t th
e re
ader
w
ill r
emem
ber
yo
u b
yOb
ject
ive
•A
ccu
rate
•P
osi
tive
an
d c
riti
cal
Cle
ar
•W
ell s
tru
ctu
red
•S
tan
dal
on
e
Sim
ple
•P
lain
En
glis
h
•N
on
-tec
hn
ical
ter
ms
Co
nsi
sten
t
•S
tyle
•A
nal
ytic
al d
epth
0503
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14
Ele
men
ts o
f a
Bu
sin
ess
Pla
nE
lem
ents
of
a B
usi
nes
s P
lan
5. M
arke
tin
g an
d sa
les
6. B
usi
nes
s sy
stem
an
d o
rgan
isa
tion
7. I
mp
lem
enta
tion
sc
hed
ule
Bu
sin
ess
con
cep
t
Dra
ftbu
sin
ess
pla
n
‘Fin
al’
busi
nes
sp
lan
Fo
cus
of
this
ph
ase
Par
t o
f th
is p
has
e
Importance
1. E
xec
uti
ve s
um
mar
y
2. P
rodu
ct o
r se
rvic
e
3. M
anag
emen
t te
am
4. M
arke
t an
d co
mp
etit
ion
8. O
ppo
rtu
nit
ies
and
ris
ks
9. F
inan
cial
pla
nnin
g an
d fi
nan
cing
0503
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15
Key
qu
esti
on
s –
1. E
xec
uti
ve S
um
mar
yK
ey q
ues
tio
ns
–1.
Exe
cu
tive
Su
mm
ary
•W
hat
is
you
r bu
sin
ess
idea
? In
wh
at w
ay d
oes
it
fulf
il th
e cr
iter
ion
of
uniq
uen
ess
?•
Who
are
you
r ta
rget
cu
sto
mer
s?•
Wh
at i
s th
e va
lue
for
tho
se
cust
om
ers?
•W
hat
mar
ket
volu
me
and
gro
wth
rat
es d
o yo
u fo
reca
st?
•W
hat
co
mp
etit
ive
envi
ron
men
t d
o yo
u fa
ce?
•W
hat
ad
dit
ion
al s
tag
es o
f d
evel
opm
ent
are
nee
ded
?•
Ho
w m
uch
in
vest
men
t is
n
eces
sary
(h
igh
leve
l es
tim
atio
n)?
•W
hat
lo
ng
term
go
als
hav
e yo
u se
t?
•W
hat
are
th
e re
sult
s o
f yo
ur
det
aile
d b
usi
nes
s p
lan
nin
g?
•W
hat
are
you
r ex
act
fin
anci
ng
nee
ds?
•H
ow
will
you
del
egat
e m
anag
emen
t tas
ks?
•H
ow
mu
ch p
rodu
ctio
n ca
pac
ity
is n
eces
sary
? •
Ho
w w
ill t
he
imp
lem
enta
tio
n o
f yo
ur
busi
nes
s id
ea b
e o
rgan
ised
?•
Wh
at a
re y
our
nex
t co
ncr
ete
step
s?
•W
hat
do
you
esti
mat
e yo
ur
fin
anci
ng
nee
ds
to
be?
•W
hat
are
th
e sa
les,
co
st
and
pro
fit
situ
atio
ns?
•W
hat
are
th
e m
ost
im
port
ant
mile
sto
nes
al
on
g th
e w
ay t
o yo
ur
goal
?•
Wh
at t
est
cust
om
ers
hav
e yo
u ap
pro
ach
ed/c
ould
yo
u ap
pro
ach?
•W
hat
dis
trib
uti
on
chan
nel
s w
ill y
ou u
se?
•W
hat
par
tner
ship
s w
ou
ld
you
like
to e
nte
r in
to?
•W
hat
opp
ort
un
itie
s a
nd
risk
s d
o yo
u fa
ce?
•W
hat
is
the
pic
ture
on
pat
ents
?
Bu
sin
ess
con
cep
tD
raft
busi
nes
s p
lan
‘Fin
al’ b
usi
nes
s p
lan
0503
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16
Key
qu
esti
on
s –
2. P
rod
uct
or
serv
ice
Key
qu
esti
on
s –
2. P
rod
uct
or
serv
ice
Exe
cu
tive
S
um
mar
y
Pro
duct
or
serv
ice
Man
agem
ent t
eam
Mar
ket
&
com
pet
itio
n
Mar
keti
ng
& s
ales
Bu
sin
ess
syst
em
& o
rgan
isa
tio
n
Imp
lem
enta
tio
n sc
hed
ule
Opp
ort
un
itie
s &
ri
sks
Fin
anci
al p
lan
nin
g
•W
hat
are
th
e fe
atu
res
or
fun
ctio
ns
of
the
pro
du
ct/s
ervi
ce?
•W
ho a
re t
he
targ
et c
ust
om
ers?
•W
hat
va
lue
pro
po
siti
on
s d
oes
th
e p
rodu
ct/s
erv
ice
pro
vid
e to
th
e cu
sto
mer
s?
(e.g
., ta
bu
late
cu
sto
mer
s’ u
nfu
lfill
ed n
eed
s an
d w
ays
the
pro
du
ct/s
ervi
ce a
ddre
sse
s th
ose
nee
ds)
•W
hat
is
the
reve
nu
e m
od
el?
(i.e
., d
esc
rip
tio
n o
f re
venu
e so
urc
es –
adve
rtis
ing
reve
nu
e, t
ran
sact
ion
reve
nue,
su
bsc
rip
tio
n re
venu
e, f
lat-
fee
vs. p
erce
nta
ge-
bas
ed)
•W
hat
is
the
dev
elo
pm
ent
stat
us
of
the
pro
duct
? W
hat
rem
ain
s to
be
don
e to
co
nve
rt t
he
bu
sin
ess
idea
into
a t
ang
ible
pro
du
ct
or
serv
ice
?
•H
as t
his
bu
sin
ess
mod
el b
een
pro
ven
else
wh
ere?
W
hat
are
so
me
succ
essf
ul e
xam
ple
s?
•W
hat
is
the
pla
n to
mai
nta
in t
he
loya
lty
of
cust
om
ers?
0503
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17
Key
qu
esti
on
s –
3. M
anag
emen
t te
amK
ey q
ues
tio
ns
–3.
Man
agem
ent
team
Exe
cu
tive
S
um
mar
y
Pro
duct
or
serv
ice
Man
agem
ent t
eam
Mar
ket
&
com
pet
itio
n
Mar
keti
ng
& s
ales
Bu
sin
ess
syst
em
& o
rgan
isa
tio
n
Imp
lem
enta
tio
n sc
hed
ule
Opp
ort
un
itie
s &
ri
sks
Fin
anci
al p
lan
nin
g
•W
ho a
re t
he
foun
der
s/fo
und
er g
rou
ps
an
d w
hat
are
th
eir
qual
ific
atio
ns,
exp
erie
nce
an
d p
ast
ach
ieve
men
ts
•H
ow
cri
tica
l is
the
idea
ori
gin
ato
r to
th
e fu
ture
su
cces
s o
f th
eve
ntu
re?
•H
ow
are
th
e m
anag
emen
t re
spon
sib
iliti
es s
har
ed a
mo
ng t
he
team
? (
e.g
., a
tab
le o
f tea
m m
emb
ers
wit
h th
eir
po
siti
on a
nd
key
acti
viti
es/r
esp
onsi
bili
ties
)
•W
hat
is
the
pla
n to
rei
nfo
rce
man
agem
ent t
eam
in
the
futu
re?
(e
.g.,
sch
edu
le o
f fu
ture
man
agem
ent
hir
ing
and
skill
s re
qu
ired
)
0503
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18
Key
qu
esti
on
s –
4. M
arke
t &
co
mp
etit
ion
Key
qu
esti
on
s –
4. M
arke
t &
co
mp
etit
ion
Exe
cu
tive
S
um
mar
y
Pro
duct
or
serv
ice
Man
agem
ent t
eam
Mar
ket
&
com
pet
itio
n
Mar
keti
ng
& s
ales
Bu
sin
ess
syst
em
& o
rgan
isa
tio
n
Imp
lem
enta
tio
n sc
hed
ule
Opp
ort
un
itie
s &
ri
sks
Fin
anci
al p
lan
nin
g
•W
hat
is
the
po
ten
tial
mar
ket
size
fo
r th
e p
rod
uct
/se
rvic
e?
(e.g
., ca
lcu
lati
on
der
ived
fro
m n
um
ber
of t
arg
et c
ust
om
ers,
un
its
sold
, val
ue
of
sale
s)
•W
hat
is
the
exp
ecte
d m
arke
t g
row
th a
nd w
hic
h m
ajo
r fa
cto
rs
infl
uen
ce t
hat
gro
wth
?
•W
ho a
re t
he
likel
y co
mp
etit
ors
? W
hat
do
they
off
er?
•W
hat
are
th
e st
ren
gth
s a
nd w
eakn
esse
s o
f co
mp
etit
ors
? W
hat
is
you
r co
mp
etit
ive
po
siti
on
ing
vis-
à-vi
sco
mp
etit
ors
? (i
.e, a
ta
ble
of
com
pet
ito
rs a
nd
thei
r ra
tin
gs
acro
ss k
ey c
rite
ria
–e.
g.,
tim
e to
lau
nch
, tec
hno
log
ical
cap
abili
ty, a
cces
s to
pro
pri
etar
y te
chn
olo
gy,
pri
vile
ged
rel
atio
nsh
ip w
ith
sup
plie
rs a
nd
cust
om
ers)
0503
01LN
ZX
L756
LTD
E-P
1
19
Key
qu
esti
on
s –
5. M
arke
ting
& s
ales
Key
qu
esti
on
s –
5. M
arke
ting
& s
ales
Exe
cu
tive
S
um
mar
y
Pro
duct
or
serv
ice
Man
agem
ent t
eam
Mar
ket
&
com
pet
itio
n
Mar
keti
ng
& s
ales
Bu
sin
ess
syst
em
& o
rgan
isa
tio
n
Imp
lem
enta
tio
n sc
hed
ule
Opp
ort
un
itie
s &
ri
sks
Fin
anci
al p
lan
nin
g
•W
hat
are
th
e sp
ecif
ic p
lan
s to
pro
mo
te t
he
pro
du
ct/s
erv
ice
?
•H
ow
will
th
e p
rod
uct
/ser
vice
be
dis
trib
ute
d?
Wh
ich
par
tner
s w
ill b
e n
eed
ed i
n th
e d
istr
ibu
tion
ch
ann
el?
•W
hat
will
be
the
pri
cin
g st
rate
gy?
(e
.g.,
how
mu
ch w
ill y
ou
char
ge
for
dif
fere
nt
cust
om
er s
eg
men
ts, q
uan
titi
es)
0503
01LN
ZX
L756
LTD
E-P
1
20
Key
qu
esti
on
s –
6. B
usi
nes
s sy
stem
s &
org
anis
ati
on
Key
qu
esti
on
s –
6. B
usi
nes
s sy
stem
s &
org
anis
ati
on
Exe
cu
tive
S
um
mar
y
Pro
duct
or
serv
ice
Man
agem
ent t
eam
Mar
ket
&
com
pet
itio
n
Mar
keti
ng
& s
ales
Bu
sin
ess
syst
em
& o
rgan
isa
tio
n
Imp
lem
enta
tio
n sc
hed
ule
Opp
ort
un
itie
s &
ri
sks
Fin
anci
al p
lan
nin
g
•W
hat
is
the
pro
po
sed
org
anis
atio
nal
str
uct
ure
of t
he
com
pan
y?
•H
ow
will
th
is o
rgan
isat
ion
al s
tru
ctu
re h
elp
ach
ieve
bu
sin
ess
goal
s?
•W
hat
ski
lls w
ill b
e re
qu
ired
an
d w
hat
is
the
hir
ing
pla
n?
(e.g
., a
tab
le t
hat
sh
ows
tota
l nu
mb
er o
f p
osi
tio
ns
an
d th
e fu
nct
ion
al d
esc
rip
tio
n o
f po
siti
on
s, s
kills
req
uir
ed f
or
top
3 po
siti
ons
in e
ach
dep
artm
ent)
•W
hat
is
the
sco
pe
of t
he
bu
sin
ess
? (
i.e. w
hat
will
be
per
form
ed i
nte
rnal
ly a
nd w
hat
will
be
ou
tsou
rced
?)
•H
ave
stra
teg
ic p
artn
ersh
ips
bee
n id
enti
fied
? I
f ye
s, h
ow w
ill
thes
e p
artn
ers
be
sec
ure
d?
If n
o, w
hat
is
the
pla
n to
get
p
artn
ers?
•H
ave
key
vend
ors
bee
n id
enti
fied
? I
f ye
s, h
ow w
ill t
hes
e ve
ndo
rs b
e se
cure
d?
If n
o, w
hat
is
the
pla
n to
get
ve
ndo
rs?
0503
01LN
ZX
L756
LTD
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21
Key
qu
esti
on
s –
7. I
mp
lem
enta
tio
n sc
hed
ule
Key
qu
esti
on
s –
7. I
mp
lem
enta
tio
n sc
hed
ule
Exe
cu
tive
S
um
mar
y
Pro
duct
or
serv
ice
Man
agem
ent t
eam
Mar
ket
&
com
pet
itio
n
Mar
keti
ng
& s
ales
Bu
sin
ess
syst
em
& o
rgan
isa
tio
n
Imp
lem
enta
tio
n sc
hed
ule
Opp
ort
un
itie
s &
ri
sks
Fin
anci
al p
lan
nin
g
•W
hat
is
the
det
aile
d sh
ort
ter
m i
mp
lem
enta
tio
n p
lan
? (
e.g
., G
antt
char
t sh
owin
g d
etai
led
acti
viti
es b
y m
onth
)–
Who
is
resp
onsi
ble
fo
r ea
ch o
f th
e ta
sks?
–W
hat
are
maj
or
mile
sto
nes
?–
Wh
at a
re in
terd
epen
den
cies
bet
wee
n ta
sks
?
•W
hat
is
the
5-ye
ar i
mp
lem
enta
tio
n p
lan
? (
e.g
., G
antt
ch
art
show
ing
acti
viti
es b
y qu
arte
r)–
Who
is
resp
onsi
ble
fo
r ea
ch o
f th
e ta
sks?
–W
hat
are
maj
or
mile
sto
nes
?
•W
hat
are
po
ssib
le lo
ng
term
op
tion
s fo
r th
e b
usi
nes
s?
0503
01LN
ZX
L756
LTD
E-P
1
22
Key
qu
esti
on
s –
8. O
ppo
rtun
itie
s &
ris
kK
ey q
ues
tio
ns
–8.
Opp
ort
unit
ies
& r
isk
Exe
cu
tive
S
um
mar
y
Pro
duct
or
serv
ice
Man
agem
ent t
eam
Mar
ket
&
com
pet
itio
n
Mar
keti
ng
& s
ales
Bu
sin
ess
syst
em
& o
rgan
isa
tio
n
Imp
lem
enta
tio
n sc
hed
ule
Opp
ort
un
itie
s &
ri
sks
Fin
anci
al p
lan
nin
g
•W
hat
are
th
e b
est
case
an
d w
ors
t ca
se s
cen
ario
s fo
r th
e 5-
year
fi
nan
cial
pro
ject
ion
s?
Wh
at a
re t
he
key
ass
um
pti
ons
on t
he
key
par
amet
ers?
(e
.g.,
mar
ket
shar
es, p
rofi
t m
arg
in)
–re
fer
to
Ap
pen
dix
fo
r ex
amp
le
•W
hat
do
es t
he
sen
siti
vity
an
alys
is s
how
? (
i.e.,
by
vary
ing
key
ass
um
pti
ons
in i
sola
tion
)
•W
hat
mit
igat
ing
step
s ar
e p
lann
ed i
n o
rder
to
min
imis
e ri
sks?
0503
01LN
ZX
L756
LTD
E-P
1
23
Key
qu
esti
on
s –
9. F
inan
cial
pla
nnin
g &
fin
anci
ng
Key
qu
esti
on
s –
9. F
inan
cial
pla
nnin
g &
fin
anci
ng
Exe
cu
tive
S
um
mar
y
Pro
duct
or
serv
ice
Man
agem
ent t
eam
Mar
ket
&
com
pet
itio
n
Mar
keti
ng
& s
ales
Bu
sin
ess
syst
em
& o
rgan
isa
tio
n
Imp
lem
enta
tio
n sc
hed
ule
Opp
ort
un
itie
s &
ri
sks
Fin
anci
al p
lan
nin
g
•F
or
the
nex
t 5
year
s (a
nd
at l
east
1 y
ear
bey
ond
bre
akev
en
poin
t), w
hat
are
th
e p
roje
ctio
ns
for
–In
com
e st
atem
ent
(in
clud
es d
etai
led
reve
nue
sou
rce
as
des
crib
ed i
n th
e b
usi
nes
s m
od
el)
–C
ash
flow
sta
tem
ent
–C
om
pan
y va
luat
ion
, uti
lisin
g·
Dis
co
unte
d ca
sh f
low
an
alys
is
·R
even
ue
mu
ltip
les
–B
alan
ce s
hee
t
•W
hat
are
th
e ke
y as
su
mp
tio
n u
sed
in t
he
fin
anci
al p
rofo
rma?
(e
.g.,
cost
of
cap
ital
, m
arke
t sh
are,
mar
gin
)
•W
hat
are
th
e fi
nan
cial
req
uir
emen
ts f
or
the
bu
sin
ess
and
wh
at
sou
rces
of f
inan
cing
hav
e b
een
iden
tifi
ed?
(e.
g.,
fin
anci
al
sch
edu
le w
ith
amou
nt
nee
ded
an
d po
ssib
le f
inan
cin
g so
urc
es)
0503
01LN
ZX
L756
LTD
E-P
1
24
Co
nte
nts
Co
nte
nts
•B
usi
nes
s st
art-
up
pro
cess
•W
riti
ng
th
e B
usi
nes
s P
lan
•C
on
stru
ctin
g t
he
team
0503
01LN
ZX
L756
LTD
E-P
1
25
“In
ves
t in
peo
ple
, no
t id
eas”
Eu
gen
e K
lein
er, V
entu
re C
apit
alis
t
0503
01LN
ZX
L756
LTD
E-P
1
26
Ch
arac
teri
stic
s o
f a
pow
erfu
l man
agem
ent
team
Ch
arac
teri
stic
s o
f a
pow
erfu
l man
agem
ent
team
•C
om
mon
vis
ion
–ev
eryb
od
y w
ants
to
succ
eed
•C
om
ple
men
tary
att
itud
es a
nd s
tren
gth
s
•A
t le
ast
3, b
ut
usu
ally
no
mo
re t
han
6 p
eop
le
•S
tick
s to
get
her
th
roug
h th
ick
and
thin
•S
tayi
ng p
ow
er, e
ven
wh
en t
her
e ar
e se
tbac
ks
0503
01LN
ZX
L756
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1
27
Cri
teri
a ap
plie
d b
y in
vest
ors
Cri
teri
a ap
plie
d b
y in
vest
ors
•H
as t
he
team
alr
ead
y w
ork
ed t
og
eth
er?
•D
o t
eam
mem
ber
s h
ave
rele
van
t ex
per
ien
ce?
•D
o t
he
fou
nd
ers
know
thei
r w
eakn
esse
s an
d a
re
they
will
ing
to
mak
e u
p f
or
them
?
•H
ave
the
fou
nd
ers
agre
ed o
n t
hei
r fu
ture
ro
les
and
are
ow
ner
ship
issu
es s
ettl
ed?
•H
as t
he
man
agem
ent
team
ag
reed
on
a c
om
mo
n
go
al, o
r ar
e th
ere
un
der
lyin
g d
iffe
ren
ces
of
op
inio
n?
•D
o t
he
team
mem
ber
s fu
lly b
ack
the
pro
ject
?
0503
01LN
ZX
L756
LTD
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28
GO
OD
L
UC
K