eoincostello

Startups – Getting the right FIT

In Advice for Start-ups on October 1, 2011 at 6:23 pm

Making decisions about your strategy as a start-up

According to Timmons and Spinelli the resources necessary to new venture creation include the entrepreneurial team, financial resources, outside people, legal and financial advisors, technology and patents. What their research has show is that on average the better fit there is between the components of Team, Resources and Opportunity the more likely it is that the venture will be successful.

So, for example, if you are a 2 person team with some, but limited, contacts in the area your opportunity occupies, and you have little or no money, the FIT model suggests that on average the target opportunity should be proportionate (say €1m). It is all about being realistic, and this in turn being a good guide to likely success.

The equation might be expressed as TEAM (Number, relevant experience and track record) + RESOURCES (Money, contacts, beta/existing clients) = SCALE OF ACHIEVABLE OPPORTUNITY (in $,€ or £).

Click here for an image of the Timmons model Timmons model of making the best choice of start-up formulation
Source http://www.amazon.com/New-Venture-Creation-Entrepreneurship-Century/dp/0073381551

The FIT Model for Start-Ups

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