Being first in an emerging market is important, because the firm may be able to build a market share advantage. The Attack Plan For an embryonic business, the business plan should be tailored to the firm's current stage of development. The venture that isn't well into the demonstration phase needs a different plan than that described in conventional business plan guides. We suggest the following five considerations when we work with an entrepreneur seeking capital in the earliest phases of a venture. Place the venture in its proper phase.
Some judgment is required because some factors lead or lag others.
For example, product development typically leads market and management development. We usually place the venture in an earlier stage than the entrepreneur. Therefore, most business plans we review stand a low chance of raising money because the entrepreneur is usually asking for the wrong amount of money to do the wrong thing in the wrong phase. Don't skip a phase. When a phase is skipped, the uncertainty that surrounds the next major investment decision will likely be unacceptable to potential investors.