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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-
17
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.