Table of Contents
1.The Route from Concept to Company (2)
1.1.Success factors (2)
1.2.Stages of development (3)
2.The Business Idea (6)
2.1.Developing a business idea (6)
2.2.Elements of a promising business idea (7)
2.3.Protecting your business idea (10)
2.4.Presenting your idea to investors (11)
3.The Business Plan (13)
3.1.Advantages of a business plan (13)
3.2.Characteristics of a successful business plan (13)
3.3.The investor’s point of view (15)
3.4.Tips on preparing a professional business plan (17)
4.Structure and Key Elements of a Business Plan (19)
4.1.Executive summary (19)
4.2.Product or service (21)
4.3.Management team (22)
4.4.Market and competition (24)
4.5.Marketing and sales (27)
4.6.Business system and organization (32)
4.7.Implementation schedule (36)
4.8.Opportunities and risks (38)
4.9.Financial planning and financing (38)
1. THE ROUTE FROM CONCEPT TO
COMPANY
New, innovative companies generally try to grow from start-ups into established companies within 5 years. But they can seldom finance their activities alone along the way. Rather, they are dependent on professional investors with considerable financial clout. For entrepreneurs, financing is a critical question – the business plan must thus be considered from the point of view of potential investors right from the outset.
1. No business concept, no business
Having an idea is just the beginning of the creative process. Many entrepreneurs are initially infatuated with their inspiration, losing sight of the fact that their idea is the point of departure for a long process of development which must face – and withstand – tough challenges before it can enjoy financing and market success as a mature business concept.
2. Money matters
Without somebody who invests money into the idea to grow it into a viable business, this business will never become a reality. From early on, therefore, much attention must be paid to convincing investors to provide the necessary funding.
3. No entrepreneurs, no enterprise
Growing new firms is not a one-person job. It can only succeed with a team of, usually, three to five entrepreneurs whose talents are complementary. Putting together well-functioning teams is a difficult process – one that takes time, energy, and an understanding of human nature. Do not lose any time in putting your team together and work on perfecting it throughout the entire start-up process. The characteristics of a high-performance management team are discussed in more detail in section 6.3 of this Guide.
4. Traditional service providers will help you clear the first hurdles
You will often need the advice of professional service providers, such as patent lawyers, tax advisors, and market researchers - especially at the beginning. Getting the right information early (e.g., for registering a patent) can have consequences for later success or failure.
5. Strong networks are a "shot in the arm" for every new company
Professional guidance for potential entrepreneurs through a network of sponsors, entrepreneurs, venture capitalists, and service providers is decisive in transforming viable ideas into real companies. Prime examples for such regional networks can be found in Silicon Valley and the Boston area.
1.2. Stages of development
The typical progression of the start-up and development of growing companies into established firms can be subdivided into three stages. The end of each stage serves as a milestone for venture capitalists by which to gauge the status of their investment. Being familiar with each。