Page 44 - Business Plans that Work A Guide for Small Business

Before You Start Planning, Ask the Right Questions • 35

remember that while the Quick Screen exercise is important, it is purely
hypothetical until you take action. The questions that the Quick Screen
generates are its most important function. When you begin to take action,
some of these questions will be answered, and new questions will arise.
Therefore you gain the skills to constantly perform a venture checkup.
Planning, action, and adjustments are integral to the entrepreneurial pro-
cess. But before launch, the opportunity assessment and shaping process
must eventually answer the scope and scale question. Is Dan thinking big
enough?
Time and again the authors have observed the classic small busi-
ness owner who, almost like a dairy farmer, is slaved and wedded to the
business. Extremely long hours (70, 80, or even 100 hours a week), and
rare vacations, are often the rule rather than the exception. And these
hard-working owners rarely build equity, other than in the real estate
they may own for the business. The implication is clear: one of the big
differences between the growth- and equity-minded entrepreneur and the
traditional small business owner is that the entrepreneur thinks bigger.
Former venture capitalist Patricia Cloherty puts it this way: “It is critical
to think big enough. If you want to start and build a company, you are
going to end up exhausted. So you might as well think about creating
a big company. At least you will end up exhausted and rich, not just
exhausted!”
Pat has a wealth of experience as a venture capitalist and is past
president of Patrioff & Company in New York City. She also served as
the first female president of the National Venture Capital Association. In
these capacities she has been a lead investor, board member, and creator
of many highly successful high technology and biotechnology ventures,
many of which were acquired or achieved an initial public offering (IPO).
The constant action and shaping activity inherent in new venture creation
should be done in the context of thinking big. The process of thinking big
takes you on a journey always treading the fine line between high ambi-
tions and being totally out of your mind. How do you know whether the
idea you are chasing is just another rainbow or indeed has a bona fide
pot of gold at the end? The truth is that you can never know which side
of the line you are on—and can stay on—until you try and undertake the
journey.
Once you are comfortable with the Quick Screen analysis, it is time
to start thinking about the business plan. Before writing the different sec-
tions of the plan, it is useful to complete the Business Planning Guide.