Dollinger index

174 ENTREPRENEURSHIP

the following categories of information and the potential impact of each on the new ven-

ture:

1. Failure to produce the products and services promised


2. Failure to meet production deadlines or sales forecasts


3. Problems with suppliers and distributors


4. Unforeseen industry trends


5. Unforeseen events in the political, economic, social, technological, and ecological
   environments


6. Failure to survive retaliation by competitors with significantly more resources


7. The problems of unproven and inexperienced management


8. The problems of unproven and undeveloped technology


9. Difficulties in raising additional financing


10. Other issues specific to the firm in question

Concluding Sections

There are a few loose ends and details left to report on in the concluding sections.

Summary and Conclusions. A brief summary of the highlights and key features of the

report must include the firm’s overall strategic direction, the reasons for believing the

firm will succeed, a short description of how the firm will exploit its unique resources

to advantage, the firm’s sales and profit projections, its capital requirements, and the per-

centage ownership for the founders and investors.

Because this is a summary, no new information should be reported here. The entre-

preneurs may even use the exact words used in earlier sections since repetition will rein-

force the message and demonstrate consistency.

Scheduling and Milestones. The business plan outlines a number of actions to be taken

in the future, actions discussed in many different sections of the plan. To consolidate the

timing of events, the plan should present a schedule in chart form, listing the important

milestones to be reached in the near and intermediate term. This helps investors know

when the firm will need additional capital infusions and allows them to track the firm’s

progress. Projected calendar dates for the following events should appear:

1. Seeking legal counsel and accounting services


2. Filing documents necessary to set up the desired legal form of business, and com-
   pleting licensing requirements


3. Completion of research and development efforts


4. Completion of a working prototype


5. Purchase or lease of production facilities and office and retail space


6. Selection of personnel: management, skilled, semiskilled


7. Ordering supplies, production materials, inventory


8. Beginning production


9. First order, sales, and payments


10. Other critical dates and events