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Business Plan

Even though one of the most important things about a new-venture creation is the business plan, this is not one of the key factors on predicting a new-venture success. First, a good business plan should highlight the skills and experiences of the team’s members related with the business. Second, assuming that successful entrepreneurs choose mainly a structurally attractive industry with potential for growing, they should describe in the business plan how they plan to make enough profit (e.g. how much customers will pay for it?). Third, good business plans reflect the entrepreneurs’ awareness of the new venture’s context, and describe how it affects the business now and on the future once this context change. Finally, the business plan should include a description of a dynamic relationship among these three factors, showing the risks and rewards in a best/worst case scenario. Overall, business plans should always include precise information about what is known, and entrepreneurs should face risk upfront by running a small prototype of their businesses as a proof of concept for what is unknown. Even though one of the most important things about a new-venture creation is the business plan, this is not one of the key factors on predicting a new-venture success. First, a good business plan should highlight the skills and experiences of the team’s members related with the business. Second, assuming that successful entrepreneurs choose mainly a structurally attractive industry with potential for growing, they should describe in the business plan how they plan to make enough profit (e.g. how much customers will pay for it?). Third, good business plans reflect the entrepreneurs’ awareness of the new venture’s context, and describe how it affects the business now and on the future once this context change. Finally, the business plan should include a description of a dynamic relationship among these three factors, showing the risks and rewards in a best/worst case...

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