Page 27 - Business Plans that Work A Guide for Small Business

18 • Business Plans that Work

u ncomfortable viewing the opportunity and resources somewhat precari-
ously balanced by the team. It is especially disconcerting to some because
we show the three key elements of the entrepreneurial process as circles,
and thus the balance appears tenuous. These reactions are justified, ac-
curate, and realistic. The entrepreneurial process is dynamic. Those who
recognize the risks better manage the process and garner more return.
The lead entrepreneur’s job is simple enough. He or she must carry the
deal by taking charge of the success equation. In this dynamic context, am-
biguity and risk are actually your friends. Central to the homework, creative
problem solving and strategizing, and due diligence that lie ahead is analyzing
just what are the fits and gaps that exist in the venture. What is wrong with
this opportunity? What is missing? What good news and favorable events
can happen, as well as the adverse? What has to happen to make it attractive
and a fit for you? What market, technology, competitive, management, and
financial risks can be reduced or eliminated? What can be changed to make
this happen? Who can change it? What are the least resources necessary to
grow the business the farthest? Is this the right team? By implication, if one
can determine these answers and make the necessary changes by figuring out
how to fill the gaps and improve the fit and attract key players who can add
such value, then the odds for success rise significantly. Typically the Tim-
mons Model starts by looking more like Figure 1.2.

Figure 1.2 Timmons Model of Lazybones
Lazybones

Communication
Opportunity
Very larges, Resources
growing, and Very limited
unde ned Business plan

Fits and gaps
Ambiguity Innumerable: Money and Exogenous forces
management
Leadership Creativity
Team Brain trust
Uncertainty Capital markets context

Founder
Founder
Sustainability: For environment, community, and society