Gaining Respect

Leaders might accept not being loved, but they would definitely like to be respected. Entrepreneurs are not different.

Respect though is gained not by the title of a leader’s position, but by his or her actions, behavior, and consistency of decisions. Business leaders have to prove themselves to their employees to earn respect.

One’s position allows you to command and direct subordinates to do certain things. Having their respect will make them more willing and happier to carry out their tasks for you. In the long term, gaining respect of your employees builds lasting loyalty.

So as business leaders and Entrepreneurs do what is necessary to gain respect by how you treat people, make decisions, and carry yourself. If you respect your people, they in turn will do the same.

Do the Right Things!

Ravi Patel

Published in: on July 30, 2019 at 4:44 am  Leave a Comment  
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Verify What You Trust

As Entrepreneurs start building a solid leadership team for growth, they have to rely on and trust their key management personnel. But is that enough to ensure superior performance and growth?

While trusting the leadership to do the right thing, the Entrepreneur must also oversee the building of management reporting systems that independently verify the progress made by the company in established metrics. Such systems should have checks and balances to ensure that verification can be relied upon.

Trust is essential, but verification is paramount for long-term success. This is similar to a previous post on whether you should depend on people or processes. Trust is people based; verification is process based.

Entrepreneurs, trust your people but do have verification systems in place.

Ravi Patel

Published in: on July 23, 2019 at 4:27 am  Leave a Comment  
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Solution-oriented Culture

Don’t find fault, find a remedy – Henry Ford .

Entrepreneurs could learn a lot from this statement.

In our current blame-rich rather than solution-oriented culture, leaders (mostly political) often seek out whom to accuse of problems rather than find solutions. This behavior sometimes extends to poorly run companies with unhealthy culture and negative management practices.

It is perfectly acceptable for leaders to hold people accountable for their performance. However, it is not wise to continually blame others for problems. Entrepreneurs have to take responsibility for the issues facing their business and teach their managers to do the same.

More importantly, blaming others or even accepting responsibility does not solve the problem. Entrepreneurs need to create a culture where finding solutions or remedies to issues takes precedence over blame. Such a positive culture allows people to readily accept responsibility for decisions without having to face ridicule.

Do the Right Thing by creating a solution-oriented culture in your company and incorporating that in your Mission.

Ravi Patel

Realistic Expectations

Entrepreneurs get into business to develop an idea into something really big.

While putting 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

Published in: on July 9, 2019 at 4:15 am  Leave a Comment  
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Entrepreneurial Independence

Nearing the eve of celebrating our nation’s Independence Day, a few thoughts on Entrepreneurial Independence.

Entrepreneurs commence their own businesses primarily for two reasons. They either believe that they have a better product or service, or they do not want to work for anyone else. The latter is born out of a desire of having their own independence.

As they grow their companies, Entrepreneurs lose their independence because they cannot effectively manage their businesses and/or get into a financial bind. In such cases someone else has to come to lead the company or exercise financial control (through investors or lenders), depriving Entrepreneurs of their independence.

How can Entrepreneurs maintain their independence?

First, understand one’s limitation in managing the business and build an effective management team to adequately complement the Entrepreneur. An enlightened Entrepreneur might even have to hire a CEO or COO to lead the operations of the company while the Entrepreneur focuses on his/her core strengths.

Second, pay attention to the financial strength of the company. Manage the growth and cash flows effectively such that lines of credit and borrowing are sufficient so as not to dilute equity. Even if equity capital needs to be raised, go for it when the value of the company is high enough so that the Entrepreneur can retain the majority stake.

Entrepreneurs can maintain their independence, but they have to work at it.

Ravi Patel

Published in: on July 2, 2019 at 4:28 am  Leave a Comment  
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