Getting to Plan B
Breaking Through to a Better Business Model
John Mullins & Randy Komisar
- A (brief) Review -
Motivation - Too much failure
Most start-ups fail (non-profits included).
Recipe for failure:
Believe your business plan is infallible
Build your business plan before talking to a customer
Spend a pile of money before testing key assumptions
Be inflexible in your business model
Motivation - Need more success
Why do the winners succeed?
What is it about their brilliant business plans that enable
They change them!
- The concept of business discovery. -
Companies that didn't succeed with
Value is created at critical information inflection points.
Early ventures do not have complete information.
Successful ventures systematically and efficiently gain the
Based on retrieved information, successful ventures alter
their business for success.
Algorithm for getting to Plan Success
Step 1. Don't reinvent the wheel:
Study Analogs and Antilogs
Step 2. Identify & Test LOFs:
LOFs = Leaps of Faith
(Assumptions you have no data for.)
Step 3. Guide your progress:
(Key LOFs, Hypotheses, acquired data, and implications)
Step4. Iterate Business Plan accordingly
Plan B Case Studies Around 5 Pieces
of Business Plans
Gross Margin Model
Working Capital Model
(Combination of all Components)
(Google or Amazon it)
Interview with Randy Komisar: