Are You Afraid of Hiring People Smarter Than You?

Entrepreneurs have to hire people to grow their companies. What kind of management leaders do they hire? Who should they hire?

In order to keep costs down, there might be a tendency to recruit lower-cost managers who might require a lot of supervision. Is this keeping costs down in the long run? Is the Entrepreneur’s time well spent in managing such leaders?

Entrepreneurs should not be afraid to hire people smarter than they are. Hiring smarter people might be tough on the ego and wallet, but in the long run the company will be much better for it. In fact, hiring smarter people will provide the opportunity to not only learn from them, but also allow the Entrepreneur to focus more time and energy on his/her areas of strength.

Do the Right Things!

Ravi Patel

http://www.patelCFOservices.com

Realistic Expectations

Entrepreneurs get into business with an idea that they hope to develop into something really big.

As they put together their Business Plan, they have certain expectations of how this idea will be commercialized and the Revenues and Income that the business model would generate.

Entrepreneurs hire people and have expectations regarding their performance. Similarly they expect clients or customers, vendors, other stakeholders will work with them in certain ways.

Entrepreneurs need to be careful about not having false expectations or hopeful wishes when they develop their Vision and Mission. All expectations need to be realistic, rational, and take into consideration the factors beyond the Entrepreneur’s control.

Having false expectations leads to unachievable dreams and disappointment. Moderate your expectations to be realistic, so that when your expectations are exceeded one has a reason to be jubilant.

Ravi Patel

http://www.patelCFOservices.com

Published in: on January 20, 2015 at 4:00 am  Leave a Comment  
Tags: , , ,

Are your Employees an Expense?

How do you view your employees?

Are they a cost of doing business as they decrease your bottom line? When cutting expenses, is that the first thing you think of reducing?

For large labor intensive operations, this might be the case. However, Entrepreneurs might want to view this differently.

If you train your people properly and motivate them adequately, your employees could actually improve your bottom line by increasing revenues, improving productivity or even reducing costs.. View your employees as assets – invest in them to get better results.

It takes a different mindset to get the best out of your people. If you think of them as an expense, then chances are that you don’t always get the most out of them.

Do the Right Things! Invest in your people and help them add to your bottom line.

Ravi Patel

http://www.patelCFOservices.com

A Secondary Leader

Entrepreneurs love to do everything themselves as they start and grow their companies. As they build staff, they do delegate operational  responsibilities as required.

However, do they delegate decision-making responsibilities and authority? Is there a clear backup person to whom the growing organization looks to make decisions in the absence of the Entrepreneur? Or, does the company postpone decisions awaiting the return of the Entrepreneur?

It is expected that when the company reaches a certain size, it should be in a position to have an entire secondary leadership team to run the organization. But what about the period until such a stage is reached?

An Entrepreneur needs to groom a backup person (secondary leader) to whom the organization can rely upon and who has the authority to make certain decisions. This allows the Entrepreneur to focus on other issues that may require his/her absence from the business (or even take a vacation!).

Ravi Patel

http://www.patelCFOservices.com

Published in: on January 6, 2015 at 4:03 am  Leave a Comment  
Tags: , , , ,