What Drives Your Business?

Do Entrepreneurs know what drives their business? What are your key drivers?

In one company’s conference room, there were framed posters depicting the company’s key drivers. It was very clear to ascertain the company’s focus on quality, people, financial commitment and so on. The company must have communicated to their employees these drivers and also displayed the posters in prominent work areas.

Entrepreneurs should think about developing, in addition to the Vision and Mission, key drivers in various areas of the company and communicating them to their employees. Building a company culture starts with educating the employees on and then continually reinforcing the focus towards these key drivers.

Do the Right Things!

Ravi Patel

http://www.patelCFOservices.com

What Drives Your Business?

Do Entrepreneurs know what drives their company? Is it the product, quality, people, service or something else?

When I visited a medical device company, I was pleasantly surprised to see, in the conference room, framed posters depicting the company’s key drivers. It was very clear to ascertain the company’s focus on quality, people, financial commitment and so on. I am sure that the company has communicated to their employees these drivers and also displayed the posters in prominent work areas.

Entrepreneurs should think about developing, in addition to the Vision and Mission, key drivers in various areas of the company and communicating them to their employees. Building a company culture starts with educating the employees on and then continually reinforcing the focus towards these key drivers.

Focus on key drivers rather than making a laundry list of everything.

Do the Right Things!

Ravi Patel

http://www.patelCFOservices.com

Published in: on August 9, 2016 at 3:45 am  Leave a Comment  
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Bigger or Better?

What would you like your company to be – the best or the biggest? A quick, flippant answer could be to be both.

Becoming the biggest is an ambitious objective, but achievable only if you have a special niche in the marketplace. Being bigger, with reasonable profitability, allows access to resources for further growth. However, the entrepreneurship spirit is often lost as the size of a company gets bigger. More importantly, being the biggest says nothing about the quality of the organization. Being the biggest could mask inefficiencies in the short term.

On the other hand, being the better than competitors reflects a philosophy regarding the quality of products and services, processes, customer service, people and so on. All these have to be exceptional to be the best. While short-term costs may be higher to achieve the status of being the best, the long term prospects for growth are phenomenal. Competitive differentiation is most pronounced with being the best and might allow a premium for one’s goods and services.

Being better than most allows you to become the biggest, but being the biggest does not automatically mean that you are the best.

What would Entrepreneurs rather strive for – being the biggest or the best?

Ravi Patel

http://www.patelCFOservices.com

 

Don’t Have False Expectations

As you start the New Year, be realistic in your 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

 

Letting Go Gracefully

It is always a balance as to when an Entrepreneur needs to let go and delegate responsibility of the business to someone else. If one leaves too early, the Mission and Vision might remain unaccomplished per the Entrepreneur’s original intent. Hanging on too long might jeopardize long-term success.

“Don’t let go too soon and don’t hang on too long.” – Mitch Albom. Quite useful advice for Entrepreneurs.

Leaving the business to pursue other ventures is all dependent on to whom the Entrepreneur is relinquishing control. If the Entrepreneur has built up a strong leadership team and a solid foundation to accomplish the Mission, delegating responsibility to run the business to a competent CEO is prudent. However, if the leadership team and the new CEO are not seasoned and well-developed, the Entrepreneur risks a lot by leaving too soon.

Hanging on too long can be an issue also. If the business has grown beyond the capability of the Entrepreneur to successfully run it, it might be damaging to hang on to power. A new CEO is absolutely necessary then. Alternatively, if the Entrepreneur has recruited a solid leadership team and a likely CEO and trained them, hanging on will be demotivating to the capable successor CEO and the  team as they cannot show off their potential.

If the Entrepreneur runs the business on without a secondary leadership team and wants to continue doing so, he/she does not face the question of leaving too early or hanging on. But is that continued retention of control achieving well the Mission and Vision of the business?

Ravi Patel

www.patelCFOservices.com

Slow But Sustained Incremental Progress

Entrepreneurs like to think big! Most of them left corporate jobs as they were stifled by the constraints of bureaucracy. Nothing is wrong with that.

Developing a plan to achieve those big dreams and putting it into action is a requirement for Entrepreneurial success.

Some Entrepreneurs might want immediate success. This is unrealistic. Having sustained incremental progress towards your Mission and goals is a more realistic path to success than hoping for overnight results.

While overnight success stories happen from time to time, the odds are very high against it. Entrepreneurs need to focus on making incremental, but sustained, progress in achieving realistic milestones. Celebrate those moments of success!

Consistent effort and making incremental progress on a realistic timeline might be slower that one wants, but that is ultimately what gets you to your goal.

Ravi Patel

www.patelCFOservices.com

Taking a Different View

Flying at 35,000 feet above the earth gives you a different view than one from the ground. Check out this image  Have you taken that type of view of your business?

Entrepreneurs very often get involved in the day-to-day operations of their business and sometimes get too close to it. Using the often-cited saying, they are into the trees rather than looking at the forest.

Being too close to the ground only gives you a one-dimensional perspective of what is going on in your business. One needs to elevate to a higher level to get a macro view of what is happening in the company and to all its stakeholders.

Taking a break and viewing the business from different perspectives, either as a forest or from 35,000 feet above the earth, would be helpful to Entrepreneurial leaders in better visualizing where they are, and where they need to be going. Are you doing that? Are you moving towards fulfilling your Vision and Mission?

Do the Right Things!

Ravi Patel

www.patelCFOservices.com

Would you Like to be the Biggest or Best Company?

Entrepreneurs, what would you like your company to be – the best or the biggest? A quick, flippant answer would be to be both.

Becoming the biggest is a lofty objective, but achievable if you have a special niche in the marketplace. Being bigger, with reasonable profitability, allows access to resources for further growth. However, the entrepreneurship spirit is often lost as the size of a company gets bigger. More importantly, being the biggest says nothing about the quality of the organization. Being the biggest could mask inefficiencies in the short term.

On the other hand, being the best reflects a philosophy regarding the quality of products and services, processes, customer service, people and so on. All these have to be exceptional to be the best. While short-term costs may be higher to achieve the status of being the best, the long term prospects for growth are phenomenal. Competitive differentiation is most pronounced with being the best and might allow a premium for one’s goods and services.

Being the best allows you to become the biggest, but being the biggest does not automatically mean that you are the best.

What would you rather strive for – being the biggest or the best?

Ravi Patel

http://www.patelCFOservices.com

Published in: on October 28, 2014 at 3:29 am  Leave a Comment  
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Do You Know the Key Drivers of your Business?

When I visited a medical device company, I was pleasantly surprised to see, in the conference room, framed posters depicting the company’s key drivers. It was very clear to ascertain the company’s focus on quality, people, financial commitment and so on. I am sure that the company has communicated to their employees these drivers and also displayed the posters in prominent work areas.

Entrepreneurs should think about developing, in addition to the Vision and Mission, key drivers in various areas of the company and communicating them to their employees. Building a company culture starts with educating the employees on and then continually reinforcing the focus towards these key drivers.

Do the Right Things!

Ravi Patel

http://www.patelCFOservices.com

Published in: on September 30, 2014 at 3:54 am  Leave a Comment  
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Being Realistic

Entrepreneurs have a very positive outlook regarding new opportunities and ideas. They tend to look at things as a glass half-full as opposed to half-empty. This type of optimistic thinking leads to innovative businesses.

Is this always a good thing? It depends.

If the Entrepreneur has some basis in reality and/or surrounds him or her self with good advisors, there is a good probability that he or she will not venture deep into seeming opportunities that do not make sense or are far-fetched.

On the other hand, if the Entrepreneur is stubborn and relentless in the pursuit of an idea, despite repeated contrary advice, then chances of failure increase.

It is a wonderful quality for Entrepreneurs to have optimism, curiosity and a positive view of new ideas and opportunities, but a reality check is necessary for long-term success.

Ravi Patel

http://www.patelCFOservices.com