Entrepreneurs respond to attractive opportunities by forming new firms. In this chapter, we consider the five-step process for establishing a new enterprise. One particularly noteworthy step in the process is the development of a story and a business plan, including a compelling business model. The story is a compelling synopsis of why this venture is needed at this moment in time and how it can achieve success. We then detail the task of writing a business plan, which is an effort to better prepare the venture for testing its assumptions and hypotheses. An example of a well-prepared business model is provided in appendix A. Visit the textbook website for additional sample business plans, models and slide (or pitch) decks.
1. “Purpose of a Business Plan” with Tom Byers, Stanford University
2. “Work Backwards From the Customer” with Diego Piacentini, Amazon
3. “Have a Sense of Urgency” with Mike Maples, Floodgate
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