Level 1: Motivation
Question Checklist:
1) Why is entrepreneur starting business?
2) What are entrepreneur’s goals 5, 10, 20 years out and what role
will new business play in reaching those goals?
Level 2: Exploration
Checklist: (Entrepreneur
and advisor must take notes)
1) Listing of all areas they know and all areas they don’t know (i.e.
Marketing, Sales, Finance, Fundraising, Inventory, Manufacturing, Legal,
Research)
2) Prioritization of critical pre-launch areas (based on type of business,
not what entrepreneur knows).
Level 3: Modeling the business
Advisor should NOT start
advising entrepreneur at this level without first taking entrepreneur through
prior two levels. Advisor should NOT assume entrepreneur learns like they
do and shouldn’t attempt to discourage, nor offer unwanted advice.
Entrepreneur likely has specific questions, and if so, the advisor should
answer in order to deliver the value the entrepreneur wants at this level.
Level 4: Funding
Milestone changes for
entrepreneur:
- Entrepreneur's sacrificing threshold increases;
- Entrepreneur requires sales training, regardless of background;
- Entrepreneur can choose to cut losses & quit venture or continue,
exploring alternative capitalization sources.
Level 5: Launch
Entrepreneur requires
encouragement, prioritization, focus, and camaraderie. Entrepreneur also
requires patience, ceaseless support and understanding from family.
Venture requires processes, procedures, and standards to direct embryonic
culture and productivity.
Entrepreneur may not be susceptible to paying for objective advice, judging
all advice based on prior samples, so advisor should engage in educating
on the value of business advice and supporting entrepreneur’s decisions.
Level 6: Auto-Pilot
Milestone changes:
- Explores paying for business advice, but may not know how to manage process;
- Entrepreneur seeks advice from peers and explores networks;
- Venture may experience nominal growth, then entrepreneur may choose to
exit or relaunch venture.
Level 7: Business Strategy
Entrepreneur discovers
new profit centers and finally learns value of management consultants. He
grows bureaucracy and delegates P&L and invests in R&D and future
of profit centers.
Level 8: Corporate Strategy
Entrepreneur approaches
retirement, and becomes industry spokesperson, company promoter, policy
and strategy advisor, relationship-bringer and connector, and plans own
legacy outside of business.
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