So it is very wise to plan for adequate resources in advance. Remember, most of the new ventures that die, die due to mismanaged finances. And, because growth places a severe strain on finances, some ventures die of their own accomplishments. It is in the evaluation of "resource sufficiency" that the business plan, staple of the financing community, is invaluable. A business plan is invaluable for two reasons (1) it helps you to clearly think through the resources question, and (2) it helps you to clearly communicate to potential sources of those resources (mainly financing sources) who you are, what you are trying to do, and the likelihood that you can actually do it.
If you don't know how to write a business plan, find someone who does. Many Small Business Development Centers specialize in helping here. Also universities and community colleges have specialists and courses that can teach you the skills needed to produce a plan that will tell both you, and your potential backers, what you need to know about the resources required, and the rewards that are available for those who provide them.
Although somewhat standard within the venturing community, the business plan format is different from the six-question template being used here. Figure C below is a type of "path diagram" that maps the applicable sub-questions of the NEW VENTURE TEMPLATE™ to the standard sections of the business plan:
It should be clear from Figure C, that the key section of the business plan is the marketing section. Notice how many of the key sub-questions in the first three template questions depend upon the marketing plan for answers.
Thus, if the resources that are necessary to ensure that venture growth yields life v. death are available, then the answer to the sub-question: Are there sufficient resources?, can be yes. If not, then the answer to Question C: Is it persistent over time? is NO--which means DON'T GO ON unless this can be fixed, if you are trying to start a new venture, and means DANGER if you are evaluating an ongoing business operation.
The first step away from danger is taken by writing a business plan. With the right business plan one can find the necessary backers and then "go on" with the venture. Without sufficient resources, we transmit to our new venture's birth defects that are often almost impossible to overcome. Like it or not, most new ventures carry with them almost permanently, the structure, attitudes, and culture that arise consequent to resource availability at time of founding.
So don't proceed with a congenital flaw in a venture, when it can be avoided by a little work up front. The obtaining of sufficient resources to sustain the venture is a form of "venture genetic engineering." Given all the evidence that points to the importance of sufficient resources, venturers who "plug in" their ventures before the "resource ducks" are "in a row," are imprudent, to say the least.