Beyond the Business Plan: 10 Principles for New Venture Explorers

283 Pages·2013·1.034 MB·English

by  Simon Bridge, Cecilia Hegarty (auth.)

Beyond the Business Plan
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Beyond the Business Plan
10 Principles for New Venture
Explorers
By
Simon Bridge
Visiting Professor of Entrepreneurship, University
of Ulster
and
Cecilia Hegarty
Director, PLATO EBR, N. Ireland and Ireland
© Simon Bridge and Cecilia Hegarty 2013
Softcover reprint of the hardcover 1st edition 2013 978-1-137-33286-8
All rights reserved. No reproduction, copy or transmission of this
publication may be made without written permission.
No portion of this publication may be reproduced, copied or
transmitted save with written permission or in accordance with
the provisions of the Copyright, Designs and Patents Act 1988, or
under the terms of any licence permitting limited copying issued by
the Copyright Licensing Agency, Saffron House, 6–10 Kirby Street,
London EC1N 8TS.
Any person who does any unauthorized act in relation to this
publication may be liable to criminal prosecution and civil claims
for damages.
The authors have asserted their rights to be identified as the authors
of this work in accordance with the Copyright, Designs and Patents
Act 1988.
First published 2013 by
PALGRAVE MACMILLAN
Palgrave Macmillan in the UK is an imprint of Macmillan Publishers
Limited, registered in England, company number 785998, of
Houndmills, Basingstoke, Hampshire RG21 6XS.
Palgrave Macmillan in the US is a division of St Martin’s Press LLC,
175 Fifth Avenue, New York, NY 10010.
Palgrave Macmillan is the global academic imprint of the above
companies and has companies and representatives throughout
the world.
Palgrave® and Macmillan® are registered trademarks in the United
States, the United Kingdom, Europe and other countries.
ISBN 978-1-349-46194-3 ISBN 978-1-137-33287-5 (eBook)
DOI 10.1057/9781137332875
This book is printed on paper suitable for recycling and made from
fully managed and sustained forest sources. Logging, pulping and
manufacturing processes are expected to conform to the
environmental regulations of the country of origin.
A catalogue record for this book is available from the British Library.
A catalog record for this book is available from the Library of Congress.
Typeset by MPS Limited, Chennai, India.
Contents
L ist of Case, Figures,
Illustrations and Tables ix
Preface xiii
Acknowledgments xvii
Part I Why Look Beyond the Business Plan? 1
1 The Purpose of This Book 3
2 Business Plans – Why Are They
Advocated? 13
3 Are Business Plans Appropriate? 27
4 Business Plans Are Not the
Only Option 41
5 Enterprise and Exploration 51
6 A Guide for Explorers? 65
Part II The Ten Principles 71
7 The Starting Point:
Understanding How to Explore 73
8 Principle 1 – An Enterprise
Is a Means, Not an End 81
vi Contents
9 Principle 2 – Don’t Commit
More than You Can Afford
to Lose 89
10 P rinciple 3 – Start from
Where You Are 97
11 P rinciple 4 – Carry Out Reality
Checks and Make Appropriate
Plans 103
12 P rinciple 5 – The Only Reliable
Test Is a Real One 109
13 P rinciple 6 – Get Started and
Get Some Momentum 119
14 P rinciple 7 – Accept Uncertainty 131
15 P rinciple 8 – Look for
Opportunities 141
16 P rinciple 9 – Build and Use
Social Capital 147
17 P rinciple 10 – Acquire the
Relevant Skills 159
18 Following the Principles 165
Part III Seeking a Balanced Perspective 171
19 Striking a Balance 173
20 Comparing Approaches 179
21 Some Reflections and Implications 193
22 P ostscript – The Relevance of
Exploring 207
Contents vii
Part IV Further Information 215
23 Behavioural Economics 216
Causation and Effectuation 217
Caution and Proceeding
Cautiously 221
Legal Structures 223
New Venture Terminology 226
Social Capital 229
Social Enterprises 242
Traits 244
Additional Aspects 248
Notes 255
Index 271
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List of Case, Figures,
Illustrations and Tables
Figures
2.1 B usiness start-up: The strategic
planning process 15
8.1 Maslow’s hierarchy of needs 83
8.2 What are an individual’s goals? 86
Illustrations
1.1 Starting a small consultancy business 3
1.2 Examples of enterprising ventures 6
1.3 Enterprise terminology 7
1.4 Holywood Old School 10
2.1 S ome advice for people starting
businesses 13
2.2 Two parallel views on small businesses 19
3.1 Do business plans help new ventures? 28
3.2 Business plan scepticism 31
3.3 The limitations of market forecasting 32
3.4 The business plan as a start-up syllabus 37
4.1 A Better Mousetrap 42
4.2 So what? who cares? why you? 42
4.3 Lean Startup 43
4.4 Effectuation 45
5.1 C hristopher Columbus: Explorer or
entrepreneur? 52