Perseverance

A recent blog here reflected on the essential quality required for a successful Entrepreneur – keeping cool or maintaining you composure.

Another such quality is perseverance. Perseverance is defined as the steady persistence in a course of action, a purpose, a state, etc., especially in spite of difficulties, obstacles, or discouragement.

How appropriate that an Entrepreneur possess this quality to be successful. Facing difficulty, obstacles, discouragement, setbacks and even failures are nothing new for Entrepreneurs.

Entrepreneurs who come through even after facing challenges are the ones who have a laser focus on their Mission and can navigate a steady, persistent course without being unduly discouraged. The story about the spider weaving a web despite repeated failures comes to mind.

If you desire to succeed in achieving your Mission, have perseverance!

Ravi Patel

www.patelCFOservices.com

Knowing Your Business Model

How well do you know your business model? As an Entrepreneur have you thought about this question?

One has a successful company as the end result of having a consistently well-functioning business model. An Entrepreneur needs to know exactly how his/her business model works.

What are the key Revenue drivers? Is there a competitive advantage? Are there any barriers to entry? Do you have proprietary technology?

What are the key cost components? Are they well controllable? What costs are fixed and which ones are variable? Is your model labor sensitive or capital-intensive?

What are the other variables that have a significant influence on your model? Distribution? Customer service? Rapid response times?

An entrepreneur has to not only to know answers to the above questions and more, but more importantly he/she needs to determine the sensitivity of each of the components to the whole model. What are the few variables, that have a tremendous impact on the model, if tweaked even slightly could make the model better?

Only when you can fully understand your business model, you can make it better! Do the Right Things!

Ravi Patel

www.patelCFOservices.com

 

Published in: on January 23, 2012 at 5:59 am  Leave a Comment  
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Is Firing People Wrong?

There seems to be a lot of controversy in the Presidential primaries regarding Romney’s much publicized out-of-context remark that he likes firing people.

Is firing people wrong? Depending on the circumstances firing a person or a group of employees might be necessary for an Entrepreneur.

A continually poor performer in any enterprise becomes a liability to the other team members and the organization. If there is no change in the employee’s performance after repeated attempts to improve it, it would be wise to part company. Similarly if a third-party service provider does not consistently provide excellent service there is cause for firing that provider.

In a broader sense, for the survival of a company and a majority of its employees if a few employees have to be let go (after all other options have been exhausted), it is most often the right thing to do. As Spock used to say in Startrek, .. for the survival of the many, a few have to suffer.”

Firing people for spite, revenge, uneconomic, or irrational reasons is never appropriate, but letting go of people for the right rationale is not necessarily wrong.

Ravi Patel

www.patelCFOservice.com

Keeping Cool!

Entrepreneurs and leaders often face stressful and chaotic situations. Do you keep your cool demeanor in these circumstances? Or not?

Have you watched firefighters, policemen or even bomb diffusers operate in high-stress situations? Their ability to act calmly reassures everyone around them not to panic.

Similarly, leaders who stay calm and keep their cool under chaotic business situations inspire confidence in their employees. Instead of panicking, they all tend to follow their leader and behave productively to resolve the issues. If the leaders lose their cool, who can blame the employees for doing so too?

Great leadership inspires people to do phenomenal things. Calm and cool leadership in volatile situations prevents their followers from panicking or performing irrational acts or even worse inciting riots.

Be a cool leader!

Ravi Patel

www.patelCFOservices.com

Published in: on January 9, 2012 at 5:36 am  Leave a Comment  
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A New Dawn in 2012

As you take on 2012, it is time to take a “Balance Sheet Review” of your business; not the true accounting numbers kind, but philosophically similar.

Entrepreneurs should evaluate their “assets” in the business – products/services, secondary leadership, people, customers, processes, etc. This should establish the strengths of your business to either build upon or further improve in 2012.

A determination of your “liabilities” will give you an idea of the weaknesses that need to be focused on in 2012. These “liabilities” need to be mitigated or converted to “assets” so that you can utilize them for success during the year.

By performing a “Balance Sheet Review,” Entrepreneurs can set their priorities, resolutions and goals for 2012 – a new dawn!

As Napoleon Hill said, “Hire good people, make money, and have fun,” in 2012!

Ravi Patel

www.patelCFOservices.com