|
Part IV: Financing and Building the Venture
|
|
| The venture has a clear revenue model and a workable path to profitability. Furthermore, there is a plan of how the wealth created will be harvested by the owners. A comprehensive financial plan will be designed to demonstrate the potential for growth and profitability that is based on accurate and reliable assumptions. With the financial plan in hand, sources of investment capital will be explored and tested. Then the terms and valuation of the deal with the investors will commence. The presentation of the total business plan will require a compelling story about the venture. Furthermore, skillful negotiations with all owners and partners will be required. When funded and launched, the venture team must continuously and ethically implement the business plan and adapt to changing conditions. |
|
|
Chapter 16: The Profit and Harvest Plan
|
|
A new firm creates a sales model describing how it will
generate revenues from its customers. Then it determines how it will generate
profits from its revenues. The revenue and profit engines show how the firm will
create powerful value for its customers and how customers will enable the new
firm to profit.
|
|
|
|
Chapter 17: The Financial Plan
|
|
Entrepreneurs build a financial plan to determine the
economic potential for their venture. This plan provides an estimate of the
potential of the venture.
|
|
|
|
|
Chapter 18: Sources of Capital |
|
Entrepreneurs can estimate the capital required for their new
business by reviewing the financial projections they prepare using the methods
detailed in Chapter 17. In examining the projections and the cash flow
statement, it becomes clear what capital will be needed and when.
|
|
|
|
|
Chapter 19: Presenting the Plan and Negotiating the Deal |
|
The creators of a new enterprise need to tell their story
about the future of their business. A good story will motivate investors,
employees, and partners. A well-told narrative plan, one that demonstrates a
novel solution to an important problem, can be inspirational and motivational.
|
|
|
|
| Chapter 20: Leading a Technology Venture to Success |
|
| Creating a business plan for a new enterprise is important,
but implementing the plan successfully is essential. Execution of a plan is a
discipline for connecting strategy with reality by aligning goals and the firm’s people to achieve the desired results. |
