The formal plan forces the entrepreneur to set out in hard copy the concept, thoughts, methods, vision and plan to achieve expected growth. The formal examination causes a realistic appraisal in seven categories which are of importance to the success of the start-up.
Product/Service Fit The strength of the product-need-target market link. Given the rapid change in product life cycle, it is also important to know at which stage the entrepreneur is looking for entry.
Market Appraisal Confirmation and prioritization of markets. Which geographic areas to entre? What staging?
Determination of Resources Which resources need to be allocated in terms of funds, human resources, assets and organizational effort?