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A business
plan at the concept stage should clearly explain that you have a business opportunity
and a business model that shows the way to get there. In contrast to the later stages
of development, it will not contain a lot of financial information.
Why It's Important
At the concept stage,
a detailed business plan accomplishes two things:
1) it makes you think it through
and
2) it tells an investor that you did so. It is of less value at later stages, because
you already will be in the business.
How It Works
Primarily, your business
plan should focus on:
1) your concept, that is, your
business model,
2) your market, and
3) your team.
It should include a technology
assessment for de veloping your product. This is essentially a technology balance
sheet: the key technology components that are external and those that you will invent
plus the technical risk that's involved. You should project what it will take to
build your product and identify your first few customers. You may need to enter into
partnerships, for technology or perhaps marketing, and these should be spelled out.
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