17 A formal business plan in 10 steps

 

This chapter covers

  • What’s the compass that guides you through stages of company development? A formal business plan.
  • How should you leverage your great go-to-market strategy? By baking it into your business plan.
  • What is the key to a great strategy business planning process? Asking the right questions and an absolute focus on customers.

Business plans are not expected (and, quite frankly, are considered a waste of time) for early-stage (seed and Series A) startups because everything changes so fast that it’s hard to keep a business plan current, and three-year plans are pretty much wild guesses at the early stages. But even if you are early stage and not required to create a written business plan, the strategy process I describe here is still important:

17.1 Origins of this process

 
 

17.2 Introduction to strategic planning

 
 

17.2.1 Data collection

 
 

17.2.2 Opportunity selection

 

17.2.3 Implementation and implications

 
 

17.2.4 Creating a three-year strategic plan

 
 
 

17.3 The steps in working order

 
 
 
 

17.3.1 Step 1: Customer-needs target segments

 
 
 

17.3.2 Step 2: Value delivery and channel

 
 
 

17.3.3 Step 3: Competition

 
 

17.3.4 Step 4: Statement of purpose

 
 

17.3.5 Step 5: Three-year objective

 
 

17.3.6 Step 6: Programs, product, and services

 
 
 

17.3.7 Step 7: Core competencies, gaps, and options

 
 
 

17.3.8 Step 8: R&D plan

 
 
 

17.3.9 Stop: Do a sanity check

 
 
 

17.3.10  Step 9: Financial analysis

 
 
 

17.3.11  Step 10: Risks and interdependencies

 
 

17.4 The moral of this anecdote

 
 
 
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