Page 170 - Business Plans that Work A Guide for Small Business

Conclusion • 159

would-be entrepreneurs try to anticipate everything in advance and don’t
implement their plan until it is “perfect.” The problem is that no mat-
ter how rigorous your planning process, no plan is ever perfect. These
would-be entrepreneurs are often too paralyzed to act on their plan. The
key is to find the proper balance between planning and action to improve
your chances of success. Based upon Dan’s success to date, he appears to
have the proper balance.
As part of Dan’s planning process, he has been actively talking to
experts in franchising. In addition to taking classes, Dan has consulted
with Les Charm, an expert on growing companies and franchising. Dan
also worked closely with a mentor, Jim Bardis, former chief operating
officer and vice president of company-owned stores for ExecuTrain, a
company that provides business training services. Dan teamed up with
Joel because he recognized a weakness in his own skill set. Joel had over
10 years of leadership experience with companies ranging in size from
$12 million to $50 million. Considering that Lazybones would like to hit
these revenue targets, it makes sense to bring in someone with operat-
ing experience in larger companies. Dan has also networked with other
people with successful experience in franchising.
As the foregoing example illustrates, entrepreneurs who talk and net-
work not only improve their vision but also find potential partners and
advisers. Who should you talk to? The list starts with the smartest people
in the industry. Who are the world-class experts that you will emulate or
even hope to exceed? It includes potential customers, distributors, ven-
dors, advisers, mentors, and even competitors. Very early in the process
you should define who your core customer is in terms of demographics
(age, gender, income, etc.) and psychographics (what motivates the per-
son to buy). During such interactions, Dan has learned how to best reach
his core customer, the college student, by partnering with the university
to become a preferred provider. In this way, the university includes infor-
mation on Lazybones in communications with students (users) and their
parents (payers). By talking with a friend and seeing what has worked,
Dan has a set of metrics that helps him identify and prioritize universi-
ties to expand to, including high tuition, students with high disposable
income, and a large student population. These conversations also fos-
tered advisers.
Dan has also spent considerable time fostering relationships with sup-
pliers, most notably Continental-Girbau, who supplies Lazybones with
washing machines, dryers, and other critical equipment for laundries.