The rice fields spiraled below me. From the air, the flooded
paddies reminded me that I was entering a foreign and exotic land.
Although I had performed months of recon, I was unprepared for the
feeling of irreversible change. My whole future revolved around the
successful completion of my mission. I had left behind my home of
16 years in search of a golden future in this unearthly
place-Northern California. My comfort zone vanished into thin
air.
I had one suitcase, a duffel bag and a briefcase stuffed with a
laptop. My most sacred possession was draft 22 of a thorough
business plan full of information-painfully heavy, I mused, as the
rain slapped against the windshield a few hours north of
Sacramento.
This is not a story of blind luck, instant success, or starting
a business with seed money from a kindly uncle. This is about
starting a new national chain of retail stores called Victory
Mobility Centers with an old laptop, an idea, and the purchase of
two existing stores as a starting point. What I've learned on
my quest for business ownership could make you millions-or at least
save you from wasting time on a half-baked idea.
The Search
Content Continues Below
My journey started on a bleak Texas day in early January. For
nearly a decade, I have contributed or reported on the business
success of others through my writing and consulting. Suddenly, that
was no longer enough. I started searching through my stack of
Entrepreneur magazines for an answer to what my future would hold,
when I saw a blurb about Ability Center, a San Diego business that
sells mobility devices such as wheelchairs and minivans adapted for
the physically challenged. The business was growing at a rapid clip
and was in a position to help our aging population-a business that
makes you feel good about yourself. A smile crept across my face.
Days later, I was on a plane to San Diego to visit Ability Center.
That was three years ago.
The Workable Deal
We all need to find our "workable" deal. The hallmark
of an entrepreneur is the capacity to dream. Yet most of the time,
people seem to be content to wish for something. Wishing is what
happens when you buy a raffle ticket. The key to a more realistic
vision for success is to discern what is workable for you and what
isn't. Success depends on the concept, your team, the
presentation and your timing.
Working the workable deal means sweating the details and
producing a plan you can execute. Be realistic. If your team has
never worked in an ice cream store, don't pitch a plan for
global domination of the ice cream market.
The Pitch
It isn't wise to broadcast your plans, but our market will
grow by no less than 10 percent per year for 15 years. Current
customers are underserved by small operators who don't
advertise and are undercapitalized. The service helps the aging
with their needs for everyday living. There's no national
brand, and the whole market segment is about to bust wide open,
because baby boomers will fuel it with their decreased physical
mobility and unprecedented earning power. Our concept is a category
killer with the right people behind it. The day we close on the
acquisition of two of the industry's leaders, we will be the
fourth-largest company of its kind in the country. Two years from
now, we will be the largest in the nation.
What you just read is known as "the elevator pitch."
It's designed to attract attention to the value of your
proposition. If you can't articulate what your business is
about in one minute, you may never attract the talent or capital
you need.
The Setback
The meeting in San Diego would begin a year of frustration and
false starts. Many business owners love to be courted by potential
purchasers. The idea of selling and leaving the daily grind behind
is compelling. But when it comes to actually signing a deal, many
founders can't part with their babies. In San Diego, no amount
of cajoling, bonding or alcohol would create a workable deal. The
owner of Ability Center wouldn't agree to anything until I had
a few million dollars in the bank. Investors don't put millions
of dollars in the bank until you have a binding deal. This is the
conundrum for those without sufficient capital. I learned the
importance of creating a binding letter of intent early on-it gives
you time to raise capital and do due diligence. When you visit
potential investors, having this document shows you're
serious.
Without a binding letter of intent, my potential deal in San
Diego was dead. Then the phone rang. It was a consultant who had
worked with the owner in San Diego, and his message was simple:
"I scrutinized your plan. I feel your vision is right on, and
I want to work with you." I had my first team member. That was
two years ago.
Business Plan Do's
- Explain the pain in the marketplace that your concept will
relieve
- Accurately point out risks to your plan
- State clearly how much money you need
- Have an experienced team in place
- Have a logical and sensible investor exit strategy
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