Business Plan

Business Plan

DOI: 10.4018/978-1-5225-7155-1.ch004

Abstract

This chapter describes how to design a flexible business plan and the importance of implementing pilots in real environments. The lack of a business plan is the main reason for the failure of several start-ups. The business plan will provide a mean to design the business strategy and also how to implement it. This is a dynamic process. When the final functional prototype is done, it needs to be tested in a scalable and semi-real environment. For that, the implementation of a real pilot is mandatory. It is advised to perform the pilot in collaboration with the right business partner.
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Introduction

[The Business Plan is] a written document describing the nature of the business, the sales and marketing strategy, and the financial background, and containing a projected profit and loss statement. (Rampton, n.d.)

The lack of a business plan is the main reason for the failure of several start-ups. The business plan will provide a mean to design the business strategy but also how to implement it. The business plan must be updated during the implementation in order to keep it up-to-date according to the changes happened in the go-to-market (Step 10).

This way, the definition of a flexible business plan is the Step 8 of the innovation process.

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Step 8: Define A Flexible Business Plan

Generally, business plans consist of:

  • Chapter 1: Title Page and Contents

  • Chapter 2: Executive Summary

  • Chapter 3: Description of the Business

  • Chapter 4: Description of the product or service

  • Chapter 5: Market Analysis

  • Chapter 6: Competitive analysis

  • Chapter 7: Marketing Plan

  • Chapter 8: Operations and Management

  • Chapter 9: Financial Components of Business Plan

There are many templates for making a business plan; however, before starting with this document, some critical steps must be performed in order to support and help with the document:

  • 1.

    Update market analysis (step 2 – market research);

  • 2.

    Based on 1), define the markets (countries) to commercialise;

  • 3.

    Study of the chosen markets;

  • 4.

    Describe the benefits of the new solution for those markets (update step 1 – features and its benefits);

  • 5.

    Define a price based on market feedback (step 4);

  • 6.

    Calculate the shared quote to achieve;

  • 7.

    Define the channels used for putting the solution on the market;

  • 8.

    Define the channels for communicating;

  • 9.

    Fill the business plan canvas;

  • 10.

    Find a business partner (step 6);

  • 11.

    Do the business plan document.

During this phase, there are some tools and methods can help in filling each point listed before.

Following, some points will be briefly discussed.

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