Entrepreneurship, Second Edition

7.1. The Planning Process

Business planning literally begins when you start thinking about your new venture. In Chapter 3, we highlighted the opportunity recognition process. That is the genesis of planning. It progresses from there when you start sharing your thoughts with potential co-founders over a cup of coffee or lunch. It moves on from that point when you share the idea with your significant other, friends, family, colleagues, and professors, among others. At each interaction, you are learning about aspects of your business opportunity. Do your friends think they would buy this product or service (potential customers)? Have they said things along the lines of "This is just like XYZ Company..." (potential competitor)? Have they informed you of potential suppliers or other people you might want to hire or at least talk to or learn from? All these bits and pieces of information are valuable learning that you should document and catalog in your three-ring binder.

Once you acquire a critical mass of learning, it's time to start organizing your information in a meaningful way. First, write a short summary (less than five pages) of your current vision. This provides a road map for you and others to follow as you embark on a more thorough planning process. Share this document with co-founders, family members, and trusted advisors. Ask for feedback on what else you should be thinking about. What gaps do the people who read this summary see? What questions do they ask and how can ...