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Introduction 7

 

The spark to start a new company

if an idea for a technology/product/service company exists

and frustration is greater than reward in current job pain

and greed is greater than fear of start-up's failure pain

and financial and emotional support for start-up exist then begin

I. Concept stage:

exit (job); find (team);

get (spreadsheet tools) ; write (plan) ; find (investors);

if plan has low risk then

go to product development stage;

II. Seed stage:

exchange (stock in company for cash from friends and venture

capitalists);

recruit (superstar start-up team);

while company is on plan and money is in bank do

begin verify (technology, product, market, business);

refine (plan);

if seed stage is done and plan is still good then

go to product development stage;

end;

the following occurs if out of money or the plan is missed

if company is still viable and investors are willing then

continue seed stage else

sell (company) or close (company);

III. Product development stage:

exchange (stock in company for cash from investors);

recruit (superstar development team);

get (space, development tools, software licenses) ;

while company is on plan and money is in bank do

begin sell (product idea) ; specify (product);

develop (product) ; a market-driven product

build (first product prototypes) ; via manufacturing

test (product, internally) ; alpha testing

manufacture (first products) ; manufacturing begins

test (product, externally) ; beta testing

announce (product);

go to market development stage;

end;

if company is still viable and investors are willing then ____

continue product development stage else

sell (company) or close (company);

(continued)

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