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No Plan Survives First Contact With Customers – Business Plans versus Business Models

Steve Blank

He said, “After we graduated we took our great idea, holed up in my apartment and spent months researching and writing a business plan. We even entered it in the business plan competition. Then they had a five-year P&L statement, balance sheet, cash flow and cap table. It was an exquisitely crafted plan.

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VCs eating our own dog food: Using technology and analytics to make better investments

David Teten

Lean Case provides standard business models & metrics, so you can apply a standard approach to business planning, modeling, and profitability tracking. 645 Ventures released a cap table simulator to help level the playing field. Lighter Capital, a Revenue Based Investing VC, offers a Cost of Capital Calculator.

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Making Decisions in Context

Austin Startup

Your Cap Table is something that deserves constant care and attention. Messy cap tables can come back to haunt you when you do a financing or sell the company. Your original business plan will probably go out the window when you land your first customer. Keep the valuations consistent with company progress.

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Setting Up Your Accounting System

Feld Thoughts

Revenues and costs should both be based off of a robust set of assumptions. Anytime the financial model indicates that SayAhh will run out of cash, determine how you will raise capital to ensure liquidity and be sure to properly account for the debt or equity transaction on the balance sheet and Cap Table. historical data).

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The General Contractor for Startups

Austin Startup

The original business plan was to harvest tumors, collect genomic tests on them, use a smart database system to match their disease profiles and all annotated data against known trials and therapies, and return the results to the treatment team at the bedside.

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How to Fund a Startup

www.paulgraham.com

This is a good plan for someone with kids, because it takes mostof the risk out of starting a startup. There never has to be atime when you have no revenues. Risk and reward are usuallyproportionate, however: you should expect a plan that cuts the riskof starting a startup also to cut the average return.

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Quantum of Social

This is going to be BIG.

Foursquare was always about connecting to commercial establishments--not that they're doing tons of revenue yet, but at least you could see where they're going. Twitter has lots of revs, b/c they've been about broadcast since the day they hid @ replies--and when you're a broadcast channel, you're going to get business presence and revenues.

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