The path from an idea to a new enterprise

It has been a developing epiphany (with credit to Steve Blank) to learn over the last year that:

  • a brilliant business idea is not a validated business model, that
  • a business model is not a business plan, and that
  • a business plan is only a founder’s creative dream and perhaps not a financeable and executable business.

The last part has been a true revelation to realize that the founder’s “Plan” may only be wishful thinking and creative writing. Until bounded and constrained by financing, its only a possible direction the business could develop. It is after the final choice of a funding method and partner(s) that the plan must be evaluated and perhaps thrown away and new business operating and strategic plans created, built around the funding expectations¬† for achieving milestones and positioning for future rounds.¬† Here is a picture of my current view of this. I’d welcome your comments.

AK New Venture Process