The Timmons Model of Entrepreneurship

1815 WordsDec 29, 20138 Pages
Introduction The Timmons Model of Entrepreneurship considers opportunities, teams, and resources as the three critical factors available to an entrepreneur and holds that success depends on the ability of the entrepreneur to balance these critical factors. The entrepreneur searches for an opportunity, and on finding it, shapes the opportunity into a high-potential venture by drawing up a team and gathering the required resources to start a business that capitalizes on the opportunity. the entrepreneur risks his or her career, personal cash flow and net worth. The process starts with opportunity, not money, not strategy, not networks, not the team, not the business plan. Most genuine opportunities are much bigger than either the…show more content…
The two major roles of the team, relative to the other critical factors are: Removing the ambiguity and uncertainty of the opportunity by applying creativity. Providing leadership to manage the available resources in the most effective manner by interacting with exogenous forces and the capital market context that keeps changing constantly. Great teams, however, always remain scarce and the responsibility is on the entrepreneur to coach team members to excel. The advantages of bootstrapping include: Drives down market cost Instills discipline and leanness in the organization Encourages creative resources to achieve more with the limited amount of money and other resources available Some of the practical applications of bootstrapping include leasing instead of buying equipment, working out of a garage instead of rented space, and the like. Like the formation of the team, the size and type of opportunity determine the level and extent of resources required. While good resources remain scarce, businesses with high potential opportunities and a good management team will have no problem attracting money and other resources. The entrepreneur works to “minimize and control” rather than “maximize and own." The role of the entrepreneur in managing resources includes building a good resource base to draw from when required and drawing up a business plan through a “fit and balance” method that balances the available
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