networks, and reputation are an f 1 for Toby’s newventure. Toby readily admits that Sabine’s role makeshis business plan a much higher-potential venture.On the other hand, Sabine’s risk profile and lifestylegoals are a significant f 2 and constraint to enterprising. But we need to remember that they fit very wellfor her current strategy. Second, there are resources and capabilities associated with BV. Toby’s business plan calls for BV to provide valuable shared resources such as wholesale breadsupply, bookkeeping, used equipment, repair services,and the like. This opportunity creates a very significantresource advantage that we would call “plan f 1 ” becauseonly family members with existing businesses could incorporate these into their plan. The existing management team capabilities are also an f 1 , but becausethe existing team is not entrepreneurial (in fact, theysee the new venture as a drain on the existing business) ,we have to give an f 2 to entrepreneurial team. Third, certain resources are associated with bothSabine and Toby. Most important is the f 1 for tacitbread knowledge. They both know bread making, butthe particularly interesting point is to see how advancedToby is as a young person because he grew up in thebread industry. Correspondingly, the f 2 for retailing issignificant. While Sabine grew up in the retail breadindustry (her family has 70 retail bakeries in Germany),she does not know the casual dining bread industry (like Panera Bread Company), and this is the target forToby’s plan. While decision making is an f 1 , family communication is an f 2 . The family has great relationships,but in the business setting, they sometimes communicate like mother and son rather than business peers. The f 1 f 2 continuum makes Toby’s and Sabine’s“ prelaunch ” work very clear. Managing the f 1 andf 2 continuum is how families build their resources