They are also evaluating your ability to convey that story." Bill Gurley of Benchmark Investors want to see what is in it for them. Showing them how it will catch on and that you have the skills to make it do so (an e-commerce site with no visitors, or with a flawed engagement system is worthless). And how the net value of the business grows to become a bankable asset (which they have a share of). Are there people involved who can do what the business promises and make it happen, or is it a pipedream from someone who doesn't understand the complexity and the issues.
How you handle the orders generated - who your suppliers are, how you undercut traditional retailers (or attract a niche), how you deliver and what customer support is required. After subtracting the cost of sale and the services needed to make it happen, how much is left. This is normally done, not on paper in long reams of third party prose, but in a short, snappy pitch deck like the one Jerome has just shown us. Well that's the idea that an e-commerce site is the way to do this. There are several discussions around business plans and whether startups need them (you should check them out).
Writing a business plan presupposes communicating your future business strategy on paper.
This includes growth of service or product, financial development, personnel, projected expenditures, etc.
The point is you need a business hypothesis that you are going to test, and you need the thinking behind that, but a traditional business plan is not the right form for the agile needs of a startup. Developing a BP can be broken down into process steps making the effort seem not so overwhelming.
I highly recommend you stand with the Lean Canvus and go from there.
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