One area that entrepreneurs don’t pay enough attention to when evaluating business models is that of the talent required. By talent, I mean the type of people necessary to staff and grow the business. Here are talent examples to consider:
- Programmers with domain expertise that are hard to come by
- Difficult certifications or licenses required for operation
- Specialized medical clinics where the type of doctors are in short supply
I know of one business in Atlanta whereby the entrepreneur thought the main talent required would be easy to come by. Thankfully, the business is growing nicely, with volume ramping up quickly, but the additional work can’t be serviced properly due to a lack of people with the required government-regulated license. It is a predicament no one expected.
My recommendation is to consider talent requirements when evaluating businesses, and look at ways to incorporate a staffing pipeline early on.