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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Trusting People

Entrepreneurs like to be in “total” control. It is difficult for them to acknowledge that other people can do as good, if not a better, job than they can.  A few also believe that if they share their ideas with people, someone may steal them and take advantage.

It is all about trust. However, it is less about trusting other people, but more about not trusting themselves enough.

Entrepreneurs do take significant risks in the business sense – that is embark on new ideas, in an uncertain environment, with a not fully developed product or service, no ready customers, lack of adequate funding and so on. They are good at that.

When it comes to relying on other people, their risk-taking is limited. While they may trust family members, it is difficult for beginning Entrepreneurs to trust outsiders. So what is the issue?

In my opinion, the issue is that Entrepreneurs do not have sufficient trust in themselves to identify, train, and coach the right people to delegate key responsibilities. Sometimes loners, people management skills are the least ones they have developed. This often creates a situation where Entrepreneurs end up performing all key tasks and stretching themselves too thin.

Entrepreneurs need to train and then trust themselves to make appropriate people decisions so they can then trust those people to do the things right. The sooner they learn to do that the faster their growth and success.

Ravi Patel

Published in: on May 14, 2019 at 4:48 am  Leave a Comment  
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Do Entrepreneurs Worry About Fraud?

Almost all Entrepreneurs have heard about fraud affecting business. While they might be lucky not to have experienced fraud first-hand, they can appreciate the devastating effect of malfeasance and broken trust in companies.

Entrepreneurs are often too trusting of their employees, especially ones who started at the beginning. Too much trust without built-in internal controls leads to a potential environment for fraud.

Entrepreneurs might be aware of the need for internal controls in their companies, but the size of their organization often limits proper segregation of duties.

Regardless, Entrepreneurs should be vigilant about proper checks and balances as they build their organizations. While trusting your people is a fine virtue, a solid company is built on strong systems and procedures with proper internal controls.

Even in a smaller organization, creative division of responsibilities with reviews and approvals can provide adequate controls.

Protect your company against fraud by doing the right things!

Ravi Patel

www.patelCFOservices.com

Trusting Others

New Entrepreneurs like to be in “total” control. It is difficult for them to acknowledge that other people can do as good, if not a better, job than they can.  They also believe that if they share their ideas with people, someone may steal them and take advantage.

It is all about trust. However, it is less about trusting other people, but more about not trusting themselves enough.

Entrepreneurs do take significant risks in the business sense – that is embark on new ideas, in an uncertain environment, with a not fully developed product or service, no ready customers, lack of adequate funding and so on. They are good at that.

When it comes to relying on other people, their risk-taking is limited. While they may trust family members, it is difficult for starting Entrepreneurs to trust outsiders. So what is the problem?

In my opinion, the issue is that Entrepreneurs do not have sufficient trust in themselves to identify, train, and coach the right people to delegate key responsibilities. Sometimes loners, people management skills are the least ones they have developed. This often creates a situation where Entrepreneurs end up performing all key tasks and stretching themselves too thin.

Entrepreneurs need to train and then trust themselves to make appropriate people decisions so they can then trust those people to do the things right. The sooner they learn to do that the faster their growth and success.

Ravi Patel

www.patelCFOservices.com

Published in: on November 17, 2015 at 3:39 am  Leave a Comment  
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Trusting Others

Entrepreneurs in the beginning like to be in “total” control. It is hard for them to acknowledge that other people can do as good, if not a better, job than they can.  They also feel that if they share their ideas with people, someone may steal them and take advantage.

It is all about trust. However, it is less about trusting other people, but more about not trusting themselves enough.

Entrepreneurs take significant risks in the business sense – that is embark on new ideas, in an uncertain environment, with a not fully developed product or service, no ready customers, lack of adequate funding and so on. They are excellent at that.

When it comes to relying on other people, their risk-taking is limited. While they may trust family members, it is difficult for starting Entrepreneurs to trust outsiders. So what is the problem?

The issue could be that Entrepreneurs do not have sufficient trust in themselves to identify, train, and coach the right people to delegate key responsibilities. Sometimes as loners, people management skills are the least ones they have developed. This often creates a situation where Entrepreneurs end up performing all key tasks and stretching themselves too thin.

Entrepreneurs need to train and then trust themselves to make appropriate people decisions so they can then trust those people to do the things right. The sooner they learn to do that the faster their growth and success.

Ravi Patel

www.patelCFOservices.com

Published in: on April 21, 2015 at 3:56 am  Leave a Comment  
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Trust Yourself to Trust Others

Beginning Entrepreneurs like to be in “total” control. It is difficult for them to acknowledge that other people can do as good, if not a better, job than they can.  They also believe that if they share their ideas with people, someone may steal them and take advantage.

It is all about trust. However, it is less about trusting other people, but more about not trusting themselves enough.

Entrepreneurs do take significant risks in the business sense – that is embark on new ideas, in an uncertain environment, with a not fully developed product or service, no ready customers, lack of adequate funding and so on. They are good at that.

When it comes to relying on other people, their risk-taking is limited. While they may trust family members, it is difficult for starting Entrepreneurs to trust outsiders. So what is the problem?

In my opinion, the issue is that Entrepreneurs do not have sufficient trust in themselves to identify, train, and coach the right people to delegate key responsibilities. Sometimes loners, people management skills are the least ones they have developed. This often creates a situation where Entrepreneurs end up performing all key tasks and stretching themselves too thin.

Entrepreneurs need to train and then trust themselves to make appropriate people decisions so they can then trust those people to do the things right. The sooner they learn to do that the faster their growth and success.

Ravi Patel

www.patelCFOservices.com