Page 128 - Business Plans that Work A Guide for Small Business

8 TO SUCCESS

TEAM: THE KEY

eorges Doriot, the father of venture capital and founder of Amer-
ican Research and Development Corporation (the first modern-
Gday venture capital firm), said that he would rather “back an ‘A’
entrepreneur with a ‘B’ idea than a ‘B’ entrepreneur with an ‘A’ idea.” He
reasoned that an A team could more easily mold and reshape a B idea
into a winning opportunity than a B team could execute on an A idea.
Therefore, the team section of the business plan is often the section that
professional investors read after the executive summary. Thus it is critical
that the plan depict the members responsible for key activities and convey
that they are exceptional people with integrity, knowledge, and skills.
In many cases, the business planning process will help you identify what
gaps exist on your team. It is rare that a founding entrepreneur has all the com-
petencies needed to launch a successful business. In fact, research suggests that
ventures launched by teams are more likely to become sustainable businesses
than those launched by individuals. One study found that over 83 p ercent of
companies that achieved sales of $5 million or more were started by teams,
whereas just over half of the companies launched by teams failed. So as you
1
complete different sections of the plan, especially the marketing, operations
and development plans, start thinking of what kind of skills you need to
successfully execute on those activities. For example, we work with many
bright engineers who understand technology and how to create sophisticated
devices or software, yet they lack the business skills necessary to launch a vi-
able business, such as business development, sales, or finance. We also work

1 Jeffry Timmons and Susam Skinner, “The Route 128 One Hundred,” working paper,
Wellesley, MA: Babson College, 1984.
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