Page 41 - Business Plans that Work A Guide for Small Business

32 • Business Plans that Work

Exercise 1.1 Quick Screen: Lazybones (continued)

IV. Overall Potential

Go No Go Go, if . . . Comments
4. Fit: “O” + “R” X Strong base in founding team
+ “T”

5. Risk–reward X Dan needs to take this business to
balance the next level
6. Timing X Tough market, but Lazybones has
professional business model that
others in industry lack
7. Other compelling issues: must know or likely to fail
a. How many company stores do we need to prove
model before franchising?
b. How do we identify the right franchisee?
c. What kind of training do franchisees need?
d. What universities should we target going forward?

entrepreneurship class to investigate the feasibility of a franchising
growth plan.
As we look at the Quick Screen for Lazybones, remember that this is
an initial investigation as to whether the franchising idea is an opportunity
to grow a large profitable business. When you complete the Quick Screen
you are giving a best, first assessment of the key criteria highlighted in the
Quick Screen. You should be doing Quick Screens for multiple ideas so
don’t spend an inordinate amount of time trying to come up with precise
estimates (e.g., market size). For example, Lazybones might investigate
franchising the concept (as Dan and Joel are currently thinking), raising
external financing and opening more company stores (a model similar to
Starbucks), adding more services in a particular unit geared toward needs
of their customers, and so on. Understanding how one idea for growth
compares with others will allow you to devote more time to refining the
estimates and starting the business planning process. Every plan has its
own flavor and objectives; however, this exercise should help to clarify
your thinking during your own planning process. It should also help to
establish embedded processes as you forge a company that focuses on the
nature of the opportunity. To illustrate the dynamic nature of opportuni-
ties, we illustrate in ovals Dan and Joel’s original assessment on certain