Are you Investing in the Right Things?

All businesses require investments. Entrepreneurs are aware of the capital necessary to start a business – whether it is for working capital, machinery, equipment, or so on.

As the business grows more investment might be needed. If the Entrepreneur only thinks of investment in material things, it might be short-sighted.

Long term success requires investment in softer areas of the business. For example, in order to have consistent results it is necessary to invest in developing robust business processes (not necessarily computer systems). This takes time and resources, but it is a wise investment.

Entrepreneurs need to make similar investment in their people. Identify the key potential people in your organization and invest in them. Urge them to improve their skills, train them in functional areas, and take a risk by giving them projects and assignments that challenge them. Investing in your people, just like other assets, will pay off in the long term.

Entrepreneurs need to identify all areas of their business to determine if they have invested appropriately in such areas to make them generate superior returns.

Ravi Patel

www.patelCFOservices.com

 

 

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Published in: on September 24, 2013 at 4:57 am  Leave a Comment  
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Calling the Right Play

The football season is in full swing. It is impossible to miss the coaches on the sidelines with a color-coded sheet of possible plays to be called for that game. The head coach with all the assistant coaches spend hours prior to the game analyzing their competitor’s game, strengths and weaknesses, strategies and so on and blend it with their own team’s core competencies to create a game-plan for winning. Disciplined coaches with a good playbook are generally winners.

Entrepreneurs, do you have similar “playbook” for major strategic actions to be used against, in or with competitors, marketplace, economy, opportunities, employees and so on? Have you worked with your key leadership team to develop such a playbook?

Winning on the field, analogous to the marketplace, requires a lot of planning, analysis, strategizing to come up with the ideal game-plan for success. A playbook for winning a football game is similar to one required for succeeding in business.

Create a playbook for your business and ensure that you call the right play for the situation. Do the Right Things!

Published in: on September 17, 2013 at 5:39 am  Leave a Comment  
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Are you a Pilot?

A business associate commented that pilots have unique skills that could be useful for managing companies or projects. Could that be applied to entrepreneurial companies?

Pilots when flying at 35,000 feet have a macro view of their surroundings in relation to their aircraft. While having this unique perspective, pilots also pay attention to the micro details, tasks and checklists to ensure that the plane takes off, flies and lands safely and at the correct destination.

Entrepreneurs could definitely use such skills for ”flying” their organizations. Having the macro vision is essential in flying the company to its final destination. At the same time it is also necessary to be aware of the details to ensure that company is on course and at the right speed to reach and land on schedule at its destination.

Entrepreneurs capably “piloting” their organizations is akin to flying!

Ravi Patel

www.patelCFOservices.com

Published in: on September 10, 2013 at 5:18 am  Comments (2)  
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Productive Conflcit

Can conflict be good for Entrepreneurs?

Entrepreneurs are often used to acting decisively, but often make their decisions alone without alternative viewpoints. This works while the company is in the infancy stage, but prudent, consistent management requires input from various points of view before arriving at decisions.

Encouraging healthy and productive conflict in your organization where diverse opinions and alternatives are sought is a recipe for long term success. Optimal decisions are made when multiple facets of an issue are considered by analyzing pros and cons. Surrounding yourself with people who mostly say “yes” to the Entrepreneur/CEO is not a healthy situation.

Productive conflict is healthy and beneficial for soliciting diverse thinking on issues. Arriving at decisions after considering all sides is optimal for a growing organization. Obviously, once the decision is made everyone needs to be aligned behind the decision. Conflict then is not healthy or productive.

Ravi Patel

www.patelCFOservices.com

 

Published in: on September 3, 2013 at 5:13 am  Leave a Comment  
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