Tag: #Business

People Vs Process

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Foot Steps and Foot Prints

Two types of scenarios are there in professional life. First, following Foot Steps, second, creating Foot Prints.

Following foot steps require lot of compromises and enthusiasm to learn. Whereas creating Foot Prints require lot of confidences and innovations.

The later will become an entrepreneur and the former will become a business person. Though we used to think both business men and entrepreneurs are same, the above said is the difference between these two.

Whether you are a businessman or an entrepreneur you should have Plan B in place to run your show. Every entrepreneurs should keep in mind that Plan B should not be people oriented. But Plan A must be people oriented only.

Plan A

If you want your idea to become reality, even if you are backed my Capital, you need PEOPLE to carryout your vision and mission.  This helps your idea to become reality. Then your realised idea can start earning for you. You are a perfect Entrepreneur only if your idea starts to earn for you. Else you are just another short time Amateur Entrepreneur ONLY.

Your core people should start building your company with their teams under them. Management should make sure that these core team is well equipped and empowered to carry out these tasks. Even though you have handpicked these core team members, you cannot expect everyone from your core team to be of same caliber. It is your management skill that will better utilise their individual capabilities and form a full functional core team.

If the core team is trained and fed to handle tasks to their brim that will help them to expand their team size and in a short duration you can realise your company has crossed several milestones on growth aspect.

Can this scenario continue?

No it will not. Because every individual will have their own ambition in their career and life. On the other hand your core team would have learned a lot of additional skills which they will love to get disclosed in front of others, who would really appreciate that than what you can do to them. If their increase remuneration also gets added to this then they will surely try to unfold their wings and start flying their own.

In spite of the above situation being true, every Manager will have “that one person” who will not leave you in spite of knowing all the above. If you get one, then you are the most successful professional person. Wish for one!!!

Plan B

Loosing your core team is inevitable for sure. What will be the next step? That is what is called “Plan B”.

People are the core for the growth and success of any company. There is no substitute for that.

But people should not drive the company. Your people should drive the process of your company and if that happens, then all you need is KT time and not Individual presence. Time invested in formalising the Process by any Management will give huge returns than any other form of investment including investing in individual. End of the day, Individual will leave you for their own  aspirations, how much ever growth, knowledge and money you bet on them.

Plan A Vs Plan B

Being said, can we invest in process and run the company without people or invest in people and run the company without process? Both are not possible and this is the core issue of many Entrepreneurs ending up their vision with failure.

You should side by side invest on both, else you will be LEFT ALONE at the middle of the road. This scenario will happen to most of the companies which are on the growth aspect year after year for the first 5 years. But if you have crossed the chasm of 5 years then you would have automatically formalised some processes in operations which will eventually lead you to strengthen your Plan B and carry forward your company smoothly.

Sustainable Growth – A Real Challenge For any Entrepreneur

growth1Like I said in my earlier blog, ” Copycat or Lack of Innovation”, any entrepreneur should have a strong concept before he starts his venture. New ideas and brand new concepts are very important to maintain the growth of any business.

A business could be product based or service based. This article was written on the service based perspective.

Initial Period

A software service company can be started based on two scenarios. There is a strong financial back up to build step by step and reach a sustainable stage, OR we already have a client who is ready to give projects  so that we can grow the company on back of that project.

On both the above two scenarios the initial growth is very steep. Risk level is low and building the team is not a big task or deal.

There is another scenario which is very rare. Business getting started by SME – Subject Matter Experts. Initial period of this scenario will be very tough and also the risk level is very high. But this will be a real Unique achievement.

Team Size Vs Revenue Ratio

On both the scenarios, one thing can be a common factor. We will never start a business as a 100 member initial team. It will be from 1-10 and then it will grow to 11-50, 51-200, 201-500, etc.

Initial strength up to 200 members is what we normally see from any start up company in the first 3 – 5 years.

Alternatively on the revenue side it is easy to reach to .75 to 1 Million dollar revenue in the first 3 -5 years along with 51-200 member company.

But there will be a stagnation stage at this level for every business. Either we will see the revenue remains the same for years along with the number of team members or the revenue will not change but the team size will come down to 120 – 160 level.

Both the above scenarios will require a total new business and operational change  with new set of clients and deal sizes. If a company is able to cross this chasm with in a period of 12  – 18 months then their growth will accelerate to the next stop gap at 1001 – 5000 member company and 12 – 60 million growth.

This science is a cycle and it will happen at each level of the growth.

What will make you cross that chasm?

It can happen only if we have a strong vision and all new Next Level Growth Plan with real leaders with you to implement it. It will be a real litmus test for any Entrepreneur at this stage and those who have the following commitment only can survive that and cross the chasm.

What are those Commitments?

“Dominate or Dissolve. No more Compete” 

Yes, we can take a tough stand to Dominate the market with our New Strategy or all new Next Level Growth plan or to Dissolve or windup the show forever. Because we cannot call ourself as an Entrepreneur if we Compete with others with a stagnated Revenue or Head Count or Same level of  Clients for a long period.

So remember the phrase “Dominate or Dissolve. No more Compete”, if you really want to get called or call yourself as an Entrepreneur!!!

Time to – Not Upgrade

timeChange is the rule of nature!!!

May be this is applicable for human life. But does this need to be the standard for electronics and mobile?

Have we ever thought “it would have been better not to have an upgrade”.  Not every application or every mobile should have a continuous upgrade. We should come to a state where we should have a base version which can be used irrespective of any upcoming upgrade.

I would like to bring in the most beautiful phrase here. “Need and Want”. Time has come where we should differentiate between Need and Want of the upgrade.

An upgrade could be of two aspect. The company is upgrading it because they want to add new features into that app or device which are really essential to further use of that app or device OR they want to make some extra money out of the new release.

If we start thinking the real need of a new phone other than what we have now, then every mobile manufacture will delay their new Phone release by another two years for sure.

Who is not ready to save some extra dime out of cutting our expenses?