Invest in the Right Things

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. Are Entrepreneurs investing in the right things? If Entrepreneurs only think of investment in material things, it might be short-sighted.

Long term success requires investment also 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 wisely in such areas to generate superior returns.

Ravi Patel

www.patelCFOservices.com

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Published in: on August 7, 2018 at 4:43 am  Leave a Comment  
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Seeing What People Could Be

“A good coach will make his players see what they can be rather than what they are.” – Ara Parasheghian.

Like good coaches, Entrepreneurs have to find the potential in their people. When hiring, don’t merely evaluate the current skills and experience of the applicant. Rather, determine what the person can become with proper coaching and training.

Given the right coaching, raw talent can be molded to perform at exceptional levels in any organization. The problem for Entrepreneurs is that they mostly focus on short-term needs and do not have a long-term vision for human resource acquisition and management.

When a sculptor views a stone, he/she is evaluating whether it could be transformed into a thing of beauty. Similarly a land developer sees beyond the empty expanse of land and has a vision of what a housing community or golf course it could become.

Entrepreneurial leaders have a great vision of what their idea or product could become. They need to use a similar vision towards their people and see their potential rather than what they are right now.

Do the Right Things!

Ravi Patel

www.patelCFOservices.com

Published in: on July 18, 2017 at 4:35 am  Leave a Comment  
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Invest Wisely, Entrepreneurs!

No, this is not a blog on personal financial investing. Rather, it is for investments in your company.

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

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

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

Entrepreneurs need to make similar investment in their employees. 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 wisely in such areas to make them generate superior returns.

Ravi Patel

www.patelCFOservices.com

Published in: on March 28, 2017 at 4:22 am  Leave a Comment  
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Rely on Processes

During the initial stages of growth in their new business Entrepreneurs rely upon a limited number of people to know most aspects of their operations. Entrepreneurs depend upon these key people for everything and if someone is not present, it disrupts the operation as no one else is aware of the required details.

For organizations to grow, it is critical to develop efficient, solid business processes. Reliance on an individual or very few people for knowledge of  the procedures to conduct business is quite risky and not prudent.

Solid processes provide the foundation for imparting knowledge to multiple people for understanding the procedures and if properly cross-trained, any one should be able to fill in or step up to perform the necessary tasks as required.

Information on business tasks residing with individuals not only poses a risk, but also eliminates improvements since the individuals have always been doing it the same way and see no need to change. A well-defined process on the other hand allows measurement and continuous improvement from many people to make it even better.

Entrepreneurs should rely on processes rather than individuals.

Ravi Patel

http://www.patelCFOservices.com

Positive Influence

Venturing into a new business idea could be a lonely proposition for Entrepreneurs. Most people don’t understand their Vision and stand and watch from the sidelines, if not being critical.

There will still be a lot naysayers even as the company grows. It is critical for Entrepreneurs to surround themselves with positive people. Positive people add good vibes and positive energy to any venture. They are generally team-players and also have the motivation to overcome challenges and look at problems as opportunities.

Negative people always find fault in whatever is being asked of them or is being done around them. They always look at ways in which things or ideas will not work instead of finding solutions. They generally sap energy from an organization. These category of constantly negative people are often intelligent, but can be lazy thus finding excuses not to do things.

Entrepreneurs should be careful to distinguish between positive people and  those who are a;ways saying “yes” to them. One can be positive but still question something if it is not right. Entrepreneurs would be best served by people who are positive but are not afraid to say “no.”

Ravi Patel

www.patelCFOservices.com

Published in: on December 20, 2016 at 4:39 am  Leave a Comment  
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Power of Positive People

Entrepreneurs sometimes can be lonely when they venture into a new business idea. Most people don’t understand their Vision and stand and watch from the sidelines, if not being critical.

As the company grows, there are still a lot naysayers. It is important for Entrepreneurs to surround themselves with positive people. Positive people add good vibes and positive energy to any venture. They are generally team-players and also have the motivation to overcome challenges and look at problems as opportunities.

Negative people always find fault in whatever is being asked of them or is being done around them. They always look at ways in which things or ideas will not work instead of finding solutions. They generally sap energy from an organization. These category of constantly negative people are often intelligent, but can be lazy thus finding excuses not to do things.

Entrepreneurs should be careful to distinguish between positive people and  those who are always saying “yes” to them. One can be positive but still question something if it not right. Entrepreneurs would be best served by people who are positive but are not afraid to say “no.”

Ravi Patel

www.patelCFOservices.com

Published in: on May 3, 2016 at 4:11 am  Leave a Comment  
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Lessons for Entrepreneurs from Martin Luther King

The nation celebrated Martin Luther King’s birthday yesterday. It is interesting to review what lessons Entrepreneurs can learn from Martin Luther King (MLK).

Dave Kerpen wrote an article on Inc. on January 19, 2004 listing seven lessons from MLK that are still relevant today. Here is my summary:

  1. Dream big – if you don’t dream big, you can’t achieve significant things
  2. Persuade without power – don’t be a “boss.” but be a leader through the power of persuasion
  3. Give people something to believe in – have passion in your Vision so people are compelled to adopt it
  4. Embrace fear and be courageous anyway – be honest with people about the challenges but have the courage to face them anyway
  5. Get everyone involved – Entrepreneurs can’t do everything themselves. They need to have other people involved to build their company.
  6. Create a sense of urgency – have a bias for action to get ahead of competition
  7. Inspire people – without inspiring leadership it merely becomes a job for your people. Have them motivated to fulfill your Vision.

These are lessons that Entrepreneurs can definitely learn from and adopt.

 Ravi Patel

http://www.patelCFOservices.com

Being Fair

Leadership is about making optimal decisions for the company as a whole, not only for certain segments of stakeholders. As they say, “you cannot please all the people, all the time.”

Entrepreneurs like to be loyal to people, especially those who helped them start the business and were early employees. However, as the company grows, Entrepreneurs have to make decisions that might be tough, unfair to some, and unpopular.

Good decisions involve doing the right things even it means that some people might be adversely affected by such actions. Fairness is a great moral value, but sometimes business decisions cannot be optimal if everyone’s interest is taken into account. Entrepreneurs, on the other hand, should not in any way go out of their way to make decisions that purposely hurt certain people. That would be grossly unfair.

While difficult, make optimal decisions for your business that are ethical even if they might cause hardship for some people.

Ravi Patel

www.patelCFOservices.com

Published in: on January 12, 2016 at 4:15 am  Leave a Comment  
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Managing Change

Successful companies grow by changing with reality and situational needs. Being stuck in the same rut doesn’t help anyone.

However, Entrepreneurs can’t force change upon their employees. They need to first create conditions where employees are willing to accept change. Managing change effectively is necessary for its successful implementation.

The first step is to involve the people affected by the change in the process. Don’t force change upon people.

Involving people means that the Entrepreneur has to communicate the reasons for the change and genuinely listen to ideas from employees on how best to make it happen.

Employees are closer to the operations and are in a better position to suggest ideas once they are aware of the need for changes. Accepting their ideas gives them a feeling of being part of the process.

Involving people in a positive environment of collaboration will also make the implementation of changes more effective in terms of acceptance, speed and cost.

Manage change well by involving people and creating a positive environment for them to contribute to its success.

Ravi Patel

http://www.patelCFOservices.com

Have Positive People Around You

Entrepreneurs can be lonely when they venture into a new business idea. Most people don’t understand their Vision and stand and watch from the sidelines, if not being critical.

As the company grows, there are still a lot naysayers. It is important for Entrepreneurs to surround themselves with positive people. Positive people add good vibes and positive energy to any venture. They are generally team-players and also have the motivation to overcome challenges and look at problems as opportunities.

Negative people always find fault in whatever is being asked of them or is being done around them. They always look at ways in which things or ideas will not work instead of finding solutions. They generally sap energy from an organization. These category of constantly negative people are often intelligent, but can be lazy thus finding excuses not to do things.

Entrepreneurs should be careful to distinguish between positive people and  those who are a;ways saying “yes” to them. One can be positive but still question something if it not right. Entrepreneurs would be best served by people who are positive but are not afraid to say “no.”

Ravi Patel

www.patelCFOservices.com

Published in: on July 22, 2015 at 4:28 am  Leave a Comment  
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