Technology Ventures: From Idea to EnterpriseChapter 7: Summary The method of enterprising is to plan with audacity and execute with vigor. Christian Bovee

Technology Ventures: From Idea to EnterpriseChapter 7: Summary

The method of enterprising is to plan with audacity and execute with vigor.

Christian Bovee

How are ventures actually formed and what is the role of the business plan?

Entrepreneurs respond to attractive opportunities by forming new ventures. One particularly important step is the development of a business plan. We also discuss the benefits of joining a cluster of interconnected enterprises.

Summary

The Business PlanThe Business Plan

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Technology Ventures: From Idea to EnterpriseChapter 7: Table 7.1

Step

1. Identify and screen opportunities. Create a vision and concept statement and build an

initial core entrepreneurial team. Describe the initial ideas about the value proposition and

the business model.

2. Refine the concept, determine feasibility and prepare a mission statement. Research the

business idea and prepare a set of scenarios. Draft the outline of a business plan and an

executive summary.

3. Prepare a complete Business Plan with a financial plan, and the legal organization suitable

for the venture.

4. Determine the amount of financial, physical and human resources required. Prepare a

financial model for the business and determine the necessary resources. Prepare a plan

for acquiring these resources.

5. Secure the necessary resources and capabilities from investors as well as new talent and alliances. Launch the organization

The Five-Step Process for Establishing A New Venture


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Chapter 7: Figure 7.1 – building a new venture

Building A New Business

Opportunity

Vision

Access to Distinctive Capabilities of Resources Competencies the Team Innovation Business Industry or Strategy Context Novelty Talent Structure Processes Profitability


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Technology Ventures: From Idea to Enterprise

The performance of a new venture is a consequence of factors that encompass the dimensions of a new business.

The new venture story…• Stories play a critical role in the process of the

emergence of a new business. • Story helps to:

– Creates favorable interpretations of the social benefits of the new ventures

– Wealth-creating possibilities enabling resources to flow to the new enterprise

– Attracts financial & human resources,– Build industry acceptance

• A story is a narrative of factual or imagined events – challenges, plan, actions and outcomes.

• Defines an opportunity, a concept, cause and effect, and outcome.

Chapter 7: Table 7.2 - 3 stages of the new venture story


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Stories are an integral part of the process by which founders start and build new ventures, acquire needed resources, and generate new wealth (Lounsbury and Glynn, 2001)

Stages of the Story


Chapter 7: Exercise

Consider the corporate venture creation process of a firm you know or have worked for. Describe their creation process and their successes and failures. How could they improve the process?


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Chapter 7: concept

A business plan is a document that describes the opportunity, product, context, strategy, team, required resources, financial return, and harvest of a business venture.


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Chapter 7: Table 7.3


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Technology Ventures: From Idea to EnterpriseChapter 7: Table 7.4

Solutions or technologies looking for a problem

Unclear or incomplete business model and value proposition

Incomplete competitor analysis and marketing plan

Inadequate description of the uncertainties and risks

Gaps in capabilities required of the team

Inadequate description of revenue and profit drivers

Limited or no description of the metrics of the business

Lack of focus and a sound mission

Too many top down assumptions like "we will get 1% market share"

Limited confirmation of customer demand or pain

Ten Common Mistakes or Gaps in Business Plans


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Chapter 7: Figure 7.3

The business plan serves as the alignment tool for a new business venture.

Resources Financial Physical Intellectual

Deal Reward, Risks Incentives Ownership Harvest

People The Team Capabilities Attitude Reputation

Opportunity Customers Strategy Business Model

The Business

Plan

Context: Economy, Regulatory, Industry


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Chapter 7: Principle

Entrepreneurs can learn and master a process for building a new venture and they communicate their intentions by writing a business plan.


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http://www.slideshare.net/esaife/business-model-canvas-101

http://canvanizer.com/how-to-use/business-model-canvas-tutorial

BUSINESS MODEL canvas

http://invcapital.com/pub/BMcanvas/

http://freelanceswitch.com/start/the-business-model-canvas/

Chapter 7: Venture Challenge

VENTURE CHALLENGE1) Create a draft table of contents for your venture’s

business plan.

2) Describe your process necessary for creating a business plan.

3) Write an executive summary for your opportunity.


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Chapter 7: DVD Video

DVD Video

“Purpose of a Business Plan”

Tom Byers (Stanford)


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Documents

Technology Ventures: From Idea to EnterpriseChapter 7: Summary The method of enterprising is to plan with audacity and execute with vigor. Christian Bovee