Page 169 - Business Plans that Work A Guide for Small Business

158 • Business Plans that Work

original plan, Lazybones has five locations. You’ll note that this is well
behind plan as Dan and Joel had expected to have eight company stores
and to start franchising during this second year. It is common for entre-
preneurs to be overoptimistic in how quickly they can grow their busi-
ness. Like all entrepreneurs, implementing the business plan is a learning
experience and Dan and Joel have revised their roll-out to better reflect
the time to get new stores up and running. As of the writing of this chap-
ter, Lazybones looks on track, albeit a bit slower than expected.
During each major draft, the entrepreneur’s sophistication in describ-
ing the concept and opportunity improves. It is useful to map how the
business has evolved over time. Below are the major changes (items 1–5
precede the plan illustrated in this book, While items 6-8 are included in
the business plan in this book):

1. Starts a laundry service in Wisconsin with former college roommate.
Has rudimentary plan, but learns much on the job.
2. Refines the business over six years and then opens second location in
Syracuse.
3. In 2003, Dan moves to Boston and runs the Syracuse unit remotely.
4. While earning his MBA on a part-time basis, Dan learns about
franchising.
5. In 2008, adds two more locations in Boulder and Boston. Develops
plan to grow the company through franchising.
6. In 2009 as part of the franchising strategy, they open a company
location in Connecticut.
7. In 2010, close down UConn, but open U. of Delaware.
8. Currently identifying future company-owned locations and putting
together their franchising memorandum.

While planning is valuable in that it helps the entrepreneurs gain a
deeper understanding of their business, it is critical to put that planning
into action. Each of these iterations suggests that Dan has gained a much
deeper understanding of how to best shape this opportunity and grow his
business. Based upon the success of his first two stores and interest from
happy customers about franchising the concept, Dan believes that Lazy-
bones has the potential to be a national brand. Planning has helped him
understand how to go about franchising. Too many times entrepreneurs
fall into one of two traps. First, they “just do it” and try to learn as they
go. While this can work, it often leads to costly mistakes. Alternatively,