Entrepreneurs are creative individuals who help in identifying the opportunities in the industrial setting. Also, the author provided that an entrepreneur is different from a manager, administrator, promoter and inventor of organization (Mazzarol & Reboud, 2019). The following figure shows the level of skills and creativity of an entrepreneur:
The above figure helped in identifying that entrepreneurs are more creative and innovative than other members of the organization. Also, it has been identified that entrepreneurs have all the required management skills that are required in successful working of an organization.
This article talks about the entrepreneurs, who are creative individuals for the identification of opportunities. Moreover, the Timmons model is also discussed in context of entrepreneurship that provides the effective relationship between various aspects. Timmons model is discussed in efficient manner with the help of example to make it easy to understand.
Timmons model is a model of entrepreneurship provides relationship between three aspects i.e. opportunities, resources and teams. These are the three critical factors available to an entrepreneur which influences the success of business in the industry. Also, the success of entrepreneurship business depends on the ability of entrepreneur to use all these three attributes or critical success factors in the most effective manner. Thus, it has been identified that Timmons model is based upon the abilities of entrepreneur. The entrepreneur defines the opportunity to start a new venture. Then, a team is developed to manage the resources of organization and all the resources required in successful operations of business are identified for opening up the new venture (Mazzarol & Reboud, 2019). Thus, it has been identified that the process of opening a new venture starts with identification of opportunities available in the industry. Following figure shows the framework of Timmons model:
In the above figure, relationship between three attributes has been identified i.e. opportunity, resources and team collaboration. Opportunity recognition has been identified as the base for all entrepreneurship operations and the main aim of entrepreneurship is to minimize the risks in entrepreneurial operations by exploiting new opportunities. Following is the detail description of all the three critical success factors of this entrepreneurial model:
A unique idea is needed to execute the business plan and to open a new business in the industry. For this purpose, all the opportunities available in market are identified and on the basis of identified opportunities, a business plan is devised. Thus, Timmons model is opportunity driven model that provides that unique business idea is not always a good opportunity (“TIMMONS” Model, 2019). Further, this model provides that the available opportunities or business idea becomes viable only when the new products or services are viable to add or provide value to customers.
After identifying the business opportunity, the entrepreneur develops an organization team to start the working operations and to plan number of operative tasks in organization. The size of organization team that is required to be developed depends upon the size of business idea or opportunity. Effective teams are required to be developed to effectively execute the identified opportunity. Ineffective teams could result in failure of the developed business opportunity (Timmons Model, 2018). Also, a good team can further help in removing the chance of ambiguity and uncertainty in the business idea by applying creativity. In addition to this, the management team hired for executing the business idea will help in managing the available resources of organization in most effective manner. The developed team will help in interacting with various exogenous forces and capital market which are viable factors and may affect the successful implementation of business idea.
The management team also helps in developing the vision and mission of organization by identifying the capabilities of team members and by identifying the needs of customers in the industry.
Starting a business plan by defining the business opportunity is not enough. It is must to define the resources required in the business. The presence of extensive resources decreases the risks associated with start-up of new business by the entrepreneur. These resources help in establishing the new venture with the bootstrapping to achieve the advantages among the competitors. Mainly four factors play a significant role in establishment of the new company with economic profits such as land, labor, capital and entrepreneurship because these are utilized in production of the new venture. The type and size of the new venture describes the requirement of the resource factors along with entrepreneur which plays a role in resource management to develop the best venture. However, there are number of resources that are scarce in current times and may cause number of problems for the business organization and it is must for business firms to identify all the opportunities and develop an effective team to manage all the resources. However, business management teams must encourage availability of creative resources in organization to achieve competitive advantage in the industry.
In the above section of the report, detailed analysis of Timmons model has been conducted by evaluating the key critical factors for opening up a new venture. In this section of the report, an example of Netflix will be taken for better understanding:
Netflix is an American company founded in 1997 by Reed Hastings and Marc Randolph to provide media services. The headquarter of this company is located in California, US. Currently, Netflix has achieved global reach in the industry through its subscription based online streaming services.
Netflix was started in 1997 to offer number of DVD for sales. Hastings identified the opportunity for opening up the company to make it equivalent to amazon. However, this company identified the opportunity for starting online streaming services. The entrepreneur of this company identified the opportunity of starting up new service structure of the company when apple introduced its iphone (Littleton & Roettgers, 2018). The first iphone was introduced in 2007. Also, the company identified the opportunity to expand its service base and earn large revenue through larger customer base. This, provides that entrepreneur at Netflix identified the opportunities for setting up new venture and also for expanding their service base ("The Timmons Model", 2019).
The team factor of Netflix has helped in achieving huge success and competitive advantage through huge number of subscriptions for online streaming. Netflix hired and formulated a well-built team which paved the way for achieving leading position in industry for video streaming giant. Along with this, it has been identified that the content creator team of the organization also helps in keeping customers attracted to its website by providing attractive content on the website. Thus, it has been identified that team factor plays key role in influencing the success of organization.
The main resources that have been attracted by Netflix includes qualified and experienced staff members. Netflix has established number of departments to provide effective services to its customers. Netflix also provides regular training to its staff members to ensure that quick and quality services are provided to customers. Thus, it has been identified that training and development activities of the organization are effective resources that have helped company to attract larger number of customers in organization.
Detailed review on Timmons model helped in identifying that the entrepreneurs needs to identify the opportunities available in the industry. Also, entrepreneurs in the industry requires to develop an effective team in the organization to ensure that all the resources are effectively maintained and utilized for successful running of business enterprise. An example of Netflix has been taken in the report where it has been identified that effective work teams in organization have helped in managing all resources in effective manner.