While an increasing number of colleges and universities offer classes that teach students how to write a business plan, in practice the majority of new ventures are launched without the benefit of formal planning. The purpose of this paper is to propose a conceptual model to guide students and entrepreneurs through the process of pre‐launch investigation and planning.
To create the methodology, the authors rely on the stage‐gate model from the product development literature. The stage‐gate model is a conceptually sound set of steps that guide engineering students, practicing engineers, and product development specialists through the pre‐launch stages of investigating the merits of new product or service ideas. Using the spirit and structure of the stage‐gate model as a guide, the authors propose a model of the front end of the entrepreneurial process.
The model includes five distinct steps, starting with the identification of a business idea and progressing through feasibility analysis, business planning, and the ultimate launch of the venture.
The model proposed in this paper provides students and entrepreneurs a more structured and logical way of thinking through the merits of a business idea than is currently available.
