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Part 1 Introduction Financiers (employees or people from finance department) often wonder whether the person who has written the business plan also will execute the business or not. The business plan is quiet much easy to understand and can be analyzed as well, but in real life it is very much difficult to implement and see through (Driesen, 2010). There are many factors, which will lead to success for any business, but the greatest determinant is the entrepreneur him/herself. Though the entrepreneurs knowledge, educational qualifications and experiences can be the relevant factor, but the main factor that comes to everyones concern is the confidence level and the motivation of the entrepreneur (Timmons, 1994, pt. 7). How strongly the businessman believes in himself and the success he wants to achieve? The consistency of the outcomes when all the necessary resources are up to date and implemented one after another How quickly and effectively the businessman can change the threats into his (the business) opportunities? These are the situations the businessman has to deal with, and it is also very clear that no other ordinary person can deal with these obstacles and can easily answer any of these specific questions. So anyone starting up any new business must have to deal with the strengths and weaknesses of the starting venture because according to Timmons (1994, pt. 8), (Entrepreneurship comprises the ability to build a founding team with complementary skills and knowledge regarding the particular parameter (industry/business/market analysis). There are other important issues relating to self-knowledge through self-analysis. Because self-analysis comprises of honesty, integrity, more towards ethics and an understanding of ones own personality in relation to ones own behavior (Driesen, 2010). A business plan without a businessman It is very much important to write a business plan when starting of a new business (Bamberger, 1994; Zwart, 1998). Especially when it comes to banks and other venture capitalist along with other organizations that nascent entrepreneurs need for information in order to analyze the profitability and potentiality of the business. So important factors like technical aspects of marketing plan and fund management from financial plan will lead to determine whether the business plan offers interesting perspectives for the future (catered to the needs of the customers) (Zwart, 1998). These factors can only be compelled and implemented well when the starter of the business can come up with good ideas and creative ways of operations (operating the business). Managerial competencies are subject to change as the leaders arent born, they are made and more been made by themselves rather than external influences (Bennis, 1989 in Kor, 1991, p.186).

Literature review According to Timmons (1994), there are several factors that have to be kept in mind while starting up for a new business that includes the opportunities (that exists in the market) for the business, obviously the entrepreneur and the availability of the resources for making the business soothing enough. This literature provides some reasons why people start their own business and also reveals the relationship between a successful entrepreneur and these three factors pointing out the frameworks for starting up a new business. The less possibility In regards to the start up of a new business, there is less possibility of succeeding in the business. Willium (2001) confessed that the odds of succeeding in the business appears to be stacked against you (entrepreneur), because according to him, every one of ten small business will get the chance to reach to its tenth birthday. It does not necessarily means that nine out of every ten business in the entire world goes bankrupt. Based on the statistics provided by the American Bankruptcy Institute (2008), the first six months in 2008, when the recession is building its blocks, at around 31,458 businesses went bankrupted with an increase of 47% from the previous year (2007). So now the question is what happens to those businesses that dont survive in the long run? But one thing Willium (2001) stated is that the survival might not spell success. It is very much challenging to the entrepreneurs that they can neither earn a satisfactory living in their business nor they get rid of their business as most of their personal funding and assets been tied up with business when it started its operations. Willium (2001) also added that the happiest day of an entrepreneur is quiet the day to be the first day when the business started and the sad say when it becomes to be winding up (if the business face its closed door or gets bankrupted). The crucial components There are basically three crucial component for a successful new business: The opportunity for starting up the business with the help of market analysis; the entrepreneur or the management team (if its a venture and fully fledged firm); and the resources needed to operate the business and fuel its growth (Timmons, 2001).

Figure 1.1: Jeffry A. Timmons, New Venture Creation (Homewood, IL: Richards D. Irwin, 2001) Here these three factors are shown in regards to Timmons framework in Figure 1.1. Here at the figure mentioned above, Timmons (2001) tried to place the business plan in the middle of the framework as the basic tree components are integrated with the plan. The three ingredients are integrated into a complete strategic plan for the business (Timmons, 2001). Entrepreneurs search for potential investment The Timmons model bases itself on the entrepreneur. The entrepreneur searched for potential opportunity in which he/she will start or think for investment and do something unique. He/she then tires to shape the potential opportunity into a high potential venture and by planning up with a team and gathering some potential resources to start the perfect that capitalizes on the opportunity (Scheid, 2013). Scheid (2013) also added that there is a high risk of personal findings and personal assets been involved as the entrepreneur him/herself undertakes most of the risks. The opportunity factor The Timmons model indicates that the entrepreneurship case mostly depends on opportunity or the market shapes the opportunity (Timmons, 1994). A good idea doesnt always determines the opportunity rather the market itself shapes the opportunity for the entrepreneur as the analysis on market will determine whether it will be high time for starting the investment or the entrepreneur should be patient (Hood, 1993, p. 120). The team (Entrepreneur/management) factor Once the entrepreneur finds the right opportunity to start up the business, then he/she will gather manpower to build up a team so that the business can run smoothly where the employees, as a team will work together to gather resources for the business (Winter, 1969). The resources (available/gathered) factor According to Timmons (2001), when an Entrepreneur think of opening up a new business, he/she risks his/her money to make the business work smoothly and its a hard luck for them as most of them dont get the proper resources to operate. So the Timmons (2001) indicates the popular notion that extensive resources will reduce the risk of the starting venture and bootstrapping (stretch every dollar and maximize the investment) (McDonough, 2010) or starting with the bare minimal requirements as a way to attain competitive advantage. The advantages includes driving down the market cost which also encourages creative resources to achieve more with the limited resources that has been input (McDonough, 2010). Critical Analysis

The perfect blend There are several crucial ingredients for entrepreneurs success includes a creative entrepreneur with efficient management team and an excellent market opportunity. The vital elements of the driving force of any new venture are the lead entrepreneur and the funding management team. Georges Doriot (2010), the founder of venture capital, used to say something like this, Always considers investing on a Grade A man with a grade B ideas. Never ever invest on a grade B man with grade A ideas. He knew what he was talking about and over the past recent years, he invested on about 150 companies including Digital Equipment Corporation (DEC), and carefully watched over them as they gradually struggled to grow (Doriot, 2010). According to Willium (2010), luck is also another parameter for an entrepreneur as no ones saying to become a great quarterback or a great scientist. He also included that there is no more luck in becoming successful at entrepreneurship than in becoming successful at anything else (Willium & Zackarakis, 2010). When it comes to entrepreneurship, it is quiet a good question of recognizing a good opportunity when you are able to see one and having the skills to convert the opportunity into a thriving business (Zackarakis, 2010). In order to do that, you (an entrepreneur) have to be prepared and unlike any other profession, Luck is where preparation and opportunity meet (Willium, 2010). The biggest misconception: Ideas & implementation Perhaps the biggest misconception for any businessman or a startup is to generate a unique or creative idea for a particular business (Budner, 1962). There are several entrepreneurs who are obsessed of finding a new idea and when they have it, they are haunted with the fact that their idea can be stolen or someone going to steal it from them (Hornaday, 1970). They want to keep it secret but the main loopholes for this misconception is the idea kept hidden and there lacks proper implementation and execution of the plan (idea). As for the record these secret ideas are let down when it got the chance to introduce to the customers (Budner, 1962). So heres the big deal, the generated super secret, unique idea is not important. In entrepreneurship, there are dozens of ideas that can be generated but most important part is to implement it, building a successful connection with the opportunity and with the help of efficient management team (for venture firms), the entrepreneurs duty is to find the proper resources for operations which will cater to the needs of the customers (Willium & Zackarakis, 2010). Customer needs For starting up a new business, there are few important questions (Bunker, 1970) that have to be considered, What are the prospective customers (target market)? The answer must be very specific. For example if they (entrepreneur/team) have a consumer product, lets say shampoo, most of the marketing professionals expect them to name the buyers at different store in their prospective areas (Willium, 2010). If they are unable to name several customers immediately, then it only remains an idea, not the total market. They will only have an idea, not a market. For the record

some researchers argued that there is no such market unless customers have the need for the product- a proven need rather than hypothetical need in the mind of a wouldbe entrepreneur (Timmons, 2001). Conclusion Entrepreneurs careful considerations First and foremost, entrepreneurs should have experience in the same industry or a similar one. Starting a new business is a very demanding undertaking indeed. If the would-be entrepreneur dont have the proper experience and through idea about the market or opportunity, then they rather get back or they find partners to minimize the risk and start thinking of investing carefully. A reality check There are many entrepreneurs trying to find all the resources together before starting up for the new venture and based on the notion of the unique idea, they try to find out the results and when they think of starting they face several obstacles with the resources and other things. The reality is that opportunity, team and resources seldom match. The Timmons model considers the major role of the entrepreneur to affect a match of the three critical factors of entrepreneurship at the correct time. Success of the business also matches with the ability of the entrepreneur o ensure balance by applying creativity and leadership, and also by applying effective communication.

References: Driesen (2010). The Role Of Entrepreneur In Small Business Success. Available: Last Accessed Date: Feb 7, 2013. Timmons J.A., (1994), New Venture Creation: entrepreneurship for the 21st century, Chicago, Irwin. Pt. 7 Last Accessed Date: Feb 7, 2013. Timmons J.A., (1994), New Venture Creation: entrepreneurship for the 21st century, Chicago, Irwin. Pt. 8 Last Accessed Date: Feb 7, 2013. Bamberger, I (1994), Produkt/market strategies of small and medium sized enterprises, Aveburg, Aldershot. Last Accessed Date: Feb 7, 2013. Zwart. P. S. (1998), Het ondernemingsplan, in: Handboek ondernemers en adviseurs in het MKB (edited by Scherjon, D. & Thurik, A.), Deventer, Kluwer. Last Accessed Date: Feb 7, 2013.

Bennis, W. (1989) Groeien naar leiderschap, Veen. Last Accessed Date: Feb 7, 2013. Willium (2001). The Portable MBA in Entrepreneurship. Available: Last Accessed Date: Feb 7, 2013. Timmons J.A., (2001), New Venture Creation: entrepreneurship for the 21st century, Chicago, Irwin. Pt. 7 Last Accessed Date: Feb 7, 2013. Kor, R., G. Wijnen & M. Weggeman (1991), Management en motiveren: inhoud geven aan leiderschap, Deventer. Last Accessed Date: Feb 7, 2013.

Hood, J.N. & J.E. Young (1993), Entrepreneurships areas of development: a survey of top executives in succesful firms, Journal of Business Venturing, 8(1), 115-135. Last Accessed Date: Feb 7, 2013.

Hornaday, J.A. & C.S. Bunker (1970), The nature of the entrepreneur, Personnel Psychology, 23, 47-54. Last Accessed Date: Feb 7, 2013.

Hornaday, J.A. & J. Aboud (1971), Characteristics of successful entrepreneurs, Personnel Psychology, 24, 141-153. Last Accessed Date: Feb 7, 2013.