The real start of developing any business plan is coming up with the initial concept, idea, or thought. And I was bitter about it. Elkayam jumped on it.
Business School still tend to focus on traditional business plans while the Startup community in many cases, is going in a much more lean direction.
You still need a plan, however as soon as you make that plan you need to start testing your hypothesis and doing real customer development. In addition, most small businesses need a business plan to get a bank loan. But even when one is not required, banks say they are highly recommended.
Wells Fargo provides a guide to preparing one, as does the S. Too many entrepreneurs let their ideas die before they had a chance to really understand what customers thought and how they could evolve their model to fit a real need. WAGs are usually produced by using software tools such as Microsoft Excel and incorporate the basic economic structure of the business, starting with sales and then moving through the remainder of the income statement by capturing costs of sales, operating expenses, and overhead or general and administrative costs.
He concluded that the business would need between three and six client companies and that he would approach only businesses in growing industries where he had experience and liked working.
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