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14   •   Business Plans that Work

                    It is not surprising then, to see that many entrepreneurs launch busi-
                nesses in domains where they have experience. For example, entrepre-
                neur Sean Hackney spent several years as the marketing director of Red
                Bull North America, Inc., before founding his own energy drink com-
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                pany, Roaring Lion.  What happens if you don’t have directly relevant
                experience? What if you are young, or are changing industries? In such
                cases, it is critical to build a team to complement the entrepreneur’s skill
                set.


                Network

                A  powerful  way  to  gain  that  knowledge  is  through  networking.  The
                broader one’s network, the more knowledge one can tap. This may take
                the form of adding people to your team, or building what is called a
                virtual team. If we think of the entrepreneurial process, many start-ups
                require external financing. Often that money comes from family, friends,
                and angels. These investors can add to your knowledge base, especially
                if you have strategically chosen an angel who has operating experience
                in your marketplace. Other members of your virtual team might include
                your accountant, lawyer, suppliers, and even customers. All of them add
                to your knowledge and can help in other ways as well. For instance, your
                investors may provide leads to customers, or your accountant and lawyer
                may provide leads to other investors.
                    The key to success is a larger network. The more people you know,
                the greater the odds that you can tap into the right knowledge source.
                To that end, entrepreneurs should have a goal of meeting five or more
                new  people  a  week.  Furthermore,  you  need  to  maintain  contact  with
                your network on both a personal and a professional basis. People within
                your network are much more apt to respond quickly when you contact
                them. On a professional basis, it is important for entrepreneurs to send a
                periodic newsletter detailing the state of their progress to all current and
                potential stakeholders. This keeps you and your efforts fresh in the minds
                of your network, and often it will spur members to act on your behalf.
                They might connect you with an investor or customer without you di-
                rectly soliciting their help. So as you start this business planning process,




                17 M. Hendricks, “Do You Really Need a Business Plan?” Entrepreneur Magazine,
                December 2008, 93–95.
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