Goldsmith Technology Commercialization Model
Step 9: Strategic Business Plan
The Strategic Business Plan reflects all the information, data and knowledge the entrepreneur has collected to date. It should accurately reflect the intent, rationale, conclusions, assumptions, risks and expectations concerning the business venture for the next five years. It could be shaped by input from or requirements of any investors. At this point, it should be clear whether additional investment will be required to achieve the business opportunity.
If the business opportunity demonstrates a sales growth rate of 35 percent or greater per year, a dominant market position, and gross revenues of $25 million or more by the fifth year, it could be a good candidate for follow-on financing by venture capital sources. Anything less with any one of these criteria could mean that an angel investor or “boot strap” approach is in order. If an investor is needed and warranted, the business plan will need a section that includes information on the current value of the investment opportunity, the expected rate of investor return, anticipated uses of funds, and a payback strategy.
Definition: The process of making critical decisions concerning financing options, organizational structure, marketing approaches, and strategic partnerships are matched with the aspirations of the founders and the capabilities of the organization.
Objective: The objective of the strategic planning step is to identify and prioritize the business options, which optimize the opportunity for success.
Product: The product of this step is a concise business plan that reflects the optimum strategic business options for the enterprise.
The business activities common to this step are those necessary to develop a formal business plan.
During the strategic planning stage at least the following activities must be completed:
- Finalization of intellectual property requirements
- Finalize business organization structure
- Select a board of directors (or advisory team)
- Finalize agreements on any concurrent break-through technology requirements critical to commercialization
- Develop a formal financial plan that includes the strategy and timing of present and future funding rounds
- Develop a detailed business plan for the product development stage including objectives, schedules, milestones and allocations of the required financial and human resources
- Ensure that the management team has critical experience and expertise in technology/product/market and business development
- Form a cohesive commercialization team (design, manufacturing, marketing, management)
Milestones: Business Plan
Funding Sources: Angel investors (seed round)
Business Information: Completion of the strategic planning step will usually result in a formal business plan, finalization of enterprise formation (or corporate commitment for implementation), finalization of intellectual property requirements, acquisition of pre-venture capital funding, and finalization product development agreements.
Have you developed a strategic business plan?
Have you finalized the intellectual property requirements?
Have you finalized the business organizational structure?
Have you selected a board of directors (or advisory team)?
Have you finalized agreements on any concurrent break-through?
Have you developed a formal financial plan that includes the strategy and timing of present and future funding rounds?
Have you developed a detailed business plan for product development including objectives, schedules, milestones and allocations of the required financial and human resources?
Can you ensure that management has critical experience and expertise in technology/product/market and business development?
Have you formed a cohesive commercialization team (design, manufacturing, marketing, management)?