Most Plan A’s fail

But he says it’s all part of a process. “Most plan A’s fail, you have to start with that premise. The problem many company’s have he says is “Plan A” thinking or sticking to the original goals and business plan regardless of changes in the marketplace, inventory backups and other signs that the plan isn’t working.

He admits moving to Plan B takes a well-reasoned “leap of faith” but it’s one companies have to risk to move forward.

Working with coauthor Mullins, their book explains how to develop a dashboard process for justifying a new business plan like determining whether the backend of the business will actually scale.

“If it comes out wrong, you course correct,” says Komisar. He also explains he’s not suggesting a company rush into a new direction, specifically he says its important to preserve capital for further changes that may be needed.

Flexibility and tenacity

When looking for startups and companies to invest in Komisar says the people behind it are key.

“Flexibility and tenacity are some of the most important things I look for in an entrepreneur,” he said.

On this point, I was struck how some of Komisar’s comments echoed what Opus Capital partner Bob Borchers told me in a recent interview.

“The last thing we want is someone who says something like ‘This is a software-as-a-service company’,” said Borchers. “We look for great teams and ideas. Over the course of 5-to-7 years a successful venture will probably have changed quite a bit from the original idea.”

Iterate with discipline

Komisar spent a lot of time talking about the need for companies to iterate and develop new ideas so after the event I asked him what he thought of Google’s 20 percent program that lets engineers and designers work on projects that interest them.

He said Google seems to have too many projects and “experiments” and that some should be killed off.

“The 20 percent idea sounds good, but it needs discipline, more rigor and accountability,” he said.