| I often encounter fledgling new entrepreneurs eager | | | | options, develop a marketing presentation, and |
| to establish a new venture startup. In my view there | | | | prepare to 'pitch' their venture to investors, all in a |
| are three kinds of entrepreneurs. There are those | | | | timely manner. One additional point is, that particularly |
| that contemplate entrepreneurship and want to | | | | when a new venture concerns a technology, venture |
| make the leap to self-employment, but do not for | | | | capitalists and angel investors like to see the |
| many reasons. Then there are those that do take | | | | management team present the business plan. This |
| the plunge; do take action, however, are unprepared | | | | can be the proposed CEO or CFO that has a strong |
| for the rigors of entrepreneurship, and do not | | | | business and management background, or a business |
| properly plan for how to achieve success. And then | | | | advisory or management consultant intimately familiar |
| there are those that are successful in their | | | | with the business plan; as in the person or firm that |
| entrepreneurial quest envisioning, planning, executing, | | | | developed the business plan. |
| and attaining their objective with determination. | | | | The alternative is to hire a management consultant |
| Getting to success as an entrepreneur requires | | | | who specializes in new ventures and small business |
| determination, conviction, and an unyielding passion in | | | | for these services. In selecting a management |
| the pursuit of a dream that is so compelling there is | | | | consultant, the entrepreneur should look for one that |
| no defeat in their lexicon. It also requires | | | | has a hands-on coaching approach, as well as having |
| understanding what the requisite cost of | | | | the expertise and credentials to support their |
| entrepreneurship is. | | | | selection. Bigger doesn't always imply better, nor |
| Most of the fledgling entrepreneurs I deal with are | | | | does an individual management consultant suggest a |
| unprepared for the out-of-pocket investment | | | | lack of expertise compared to a large management |
| requirements associated with a startup. Most do not | | | | consulting firm. Choosing the right management |
| have a budget or even consider a budget. And most | | | | consultant is as important as properly planning for |
| are unprepared for the necessary and critical planning | | | | success. Most of the entrepreneurs I have worked |
| that must occur in order to establish a startup. This | | | | with prefer to be coached towards success, rather |
| includes development of a commercialization plan if | | | | than directed. And since a management consultant |
| rolling out a new technology, a strategic market | | | | must assume the role of the entrepreneur in order to |
| assessment and/or business plan, funding option | | | | develop a business plan, a coaching style works best. |
| analysis, and possible small business advising/coaching | | | | As for costs, a business plan and market assessment |
| support on a retainer basis during the planning and | | | | can each range from the low $1,000's to in excess of |
| funding stages. In the best of all worlds, the planning | | | | $100,000 if conducted independently, however the |
| stage would be preceded by an opportunity analysis | | | | market assessment will be included in a business plan. |
| that would gauge the market opportunity and | | | | If a commercialization plan is required prior to the |
| determine the validity of the product or service being | | | | business plan, the costs for it are similar to a business |
| contemplated to meet a need or solve a problem. | | | | plan. For the follow-on services, such as assessing |
| The results would form the basis of the strategic | | | | funding options, developing a marketing presentation, |
| market assessment. | | | | and presenting the business plan to potential |
| Costs for these services vary across the board. | | | | investors, costs can range by hourly, by day, by |
| There is no free lunch. If the fledgling entrepreneur | | | | engagement, or on a retainer basis. |
| has the time and expertise to do engage in all the | | | | Then there is the actually cost of putting your plan |
| planning steps, including conducting the market | | | | into action. That is the amount of cash you have on |
| assessment, analysis and developing the business | | | | hand to invest in your business. This is in addition to |
| plan, there is no cost other than printing and time. In | | | | the 'sweat-equity' necessary to make your venture a |
| this case, the successful entrepreneur(s) will have | | | | successful going concern. Having a budget for the |
| one or more mentors, possibly even an advisor, to | | | | planning stage in addition to the personal cash |
| provide external guidance, review and support the | | | | investment is necessary in getting your venture from |
| development of the requisite planning documents. | | | | the idea stage to the action stage. You want to be |
| The one factor in this process is time; and most if | | | | in the category of a successful entrepreneur who |
| not all entrepreneurs typically do not have the time | | | | has envisioned, planned, executed, and attained their |
| to develop, invent, or produce a product or service; | | | | objective. Consideration of the cost of |
| especially a new technology, AND conduct the | | | | entrepreneurship, followed by developing a budget to |
| necessary market assessment, analysis and create a | | | | cover this cost is essential. |
| strategic business plan, as well as assess funding | | | | |