This article includes a one-page preview that quickly summarizes the key ideas and provides an overview of how the concepts work in practice along with suggestions for further reading. Smart companies may incur huge losses when they enter unknown territory--new alliances, markets, products, technologies. Failures could be prevented or their cost contained if managers approached innovative ventures with the right planning and control tools. Discovery-driven planning is a practical tool that acknowledges the difference between planning for a new venture and for a more conventional business. Using Kao Corp.'s entry into floppy disks, the authors present a step-by-step approach to help companies think differently about planning. Managers should begin with the bottom line and work their way up the income statement, first determining a new venture's profit potential.