Table of Contents

Introduction – Be Clever, Avoid Why 90% of Businesses Fail

1

Six Stage Development Process

1

Getting Started

2

Stage 1 – Show What You Got!

8

1.1

Right Time, Right Place?

8

1.1.1

Determine Your Personal Cash Outflow

9

1.1.2

If The Stars Are Not Aligned!

9

1.1.3

Understanding Nay Sayers

9

1.2

It’s Time To Start – Let’s Review Your Idea and Assumptions!

10

1.2.1

A Rising Tide Lifts All Boats

10

1.2.2

Your Flagship Product

10

1.2.3

Who’s Your Customer?

11

1.2.4

What Compels Your Customer to Buy?

12

1.2.5

Product Appeal

14

1.2.6

Taping Unforeseen Opportunities

16

1.2.7

Competition

17

1.2.8

Stickiness

18

1.2.9

What’s Your Business Model

18

1.2.10

Modeling Internet and Mobile Apps

19

Stage 2 – Ground Stomping

20

2.1

Reality Through Collaboration

20

2.2

Collaborate With Experts

21

2.3

Collaborate With Target Customers

21

2.4

Dialogue with Users through Your Customer

22

2.5

Dialogue With Competitors

22

Stage 3 - Foundation Design

24

3.1

Reassessment & Moving Forward

24

3.1.1

Your Mission Statement

24

3.2

The Rubber Meets the Road

25

3.2.1

Sales Forecasting

25

3.2.2

Your Sales Forecast

27

3.2.3

Your Cash Requirements

27

3.2.4

Funding Sources

29

3.2.5

License and Permits

32

Stage 4 – Due Diligence by Entrepreneur Collaborators

33

4.1

Collaboration

33

4.2

Presentation

34

4.3

Collaborator and Advisor Remuneration

34

4.4

Presentation Do’s and Don’ts

35

4.4.1

Integrate the Intangibles

35

4.4.2

Sales Exaggeration

36

4.4.3

Never Downgrade a Team Member

36

4.4.4

Be the CEO

36

Stage 5 – Completing the Infrastructure

37

5.1

Business Plan

37

5.1.1

Plan Quarterback

37

5.1.2

Draft Executive Summary – Your Team’s Buy-In

37

5.1.3

Marketing Opportunity and Product Plan

38

5.1.4

Build Customer Stickiness

38

5.1.5

You and Your Team

39

5.1.6

Competition

39

5.1.7

Financial Plan

39

5.1.8

Production Plan

40

5.1.9

Facilities

40

Stage 6 – Selling Investors

41

6.1

A Few Suggestions

41

6.2

Presentation Overview

42

6.2.1

Greed Appeal

42

6.2.2

Elevator Pitch

43

6.2.3

Big Market Picture

43

6.2.4

We’re A Winner

44

6.2.6

A Great Investment

44

6.3

Rehearsal

45

Appendices

45

Appendix A: Consumer Profiling

46

Appendix B: NAICS codes for profiling industrial customers

50

Appendix C: Guide for Interviewing Experts

51

Appendix D: Prospective Customer - Consumer Questionnaire

52

Appendix E: Prospective Customer – Commercial/Industrial Questionnaire

54

Appendix F: Third Year Sales – the Hockey Stick

56

Principal Collaborator - Author

58