Well, as we go on in the journey, new lessons are learnt, and my commitment is to share my learnings with as many budding entrepreneurs as possible. I hope that some of the readers will benefit from these readings and perhaps change their methods accordingly. So, here goes:
- Document, document, document: No matter how small you are, there is no time too early to start documentation. Many times this is the best defense mechanism available when you want to retrace your steps, and want to find out where things could have gone wrong. At other times, it sets in a discipline of doing things right within the organisation, and ensures that standard bases are set up to be able to calibrate individual performances, and reward mechanisms.
- Prepare for the worst: Most budding entrepreneurs are born optimists. As a result, they fail to see the possibility that things do not go to plan. In business, it is important to expect that if something can fail, the chances are it will. Someone once said, you should be prepared to go through a six month period without any receipts, and that is the best test of your ability to withstand the pressures of entrepreneurship. This is also a good way of planning for how things could be.
- Honor commitments, but be wary of your clients: Honoring commitments is a 2-way street. If some of your customers keep harping that you should meet your commitments and at the same time they do not meet theirs, be prepared to understand that the relationship is not going the right way. Any business is a two way street where while you are required to deliver, your customer is required to pay. If he takes delivery, but delays payments, or does not commit to making payment, raise the red flag immediately. In worst cases, stop delivering unless clients meet their commitments first.
- Sub-contractng, to do or not to do: Sub-contracting is a two edged sword. When you are small, it is prudent to sub-contract out to others in order to be cost efficient. But as you keep growing, it makes more sense to start handling more of the work in-house. However, sub-contractors pose the danger of stealing your information, and in worse cases, your clients. This is a huge risk to business that one must be aware of. So, if sub-contract you must, ensure that at least there is a confidentiality clause built in, and more importantly a non-poaching clause (both for your staff as well as for your clients) is built into the contract.
- You cannot do all: Sometimes some opportunities appear so endearing that you forget that it is not you who will deliver, but your team. So, look at what are the commitments that your team has, how well are they able to handle these requirements, and whether they can handle them at all. If you believe that even a great opportunity can be something that your team cannot handle, back off, rather than taking more on to yourself than is necessary.
- Performance metrics for your staff: You must know what each one of your staff does. You must also set up measures of how much and how well they do what they do. Intuitive measures only serve half the purpose, and as you grow in size, any decisions taken based on your intuition may appear to be arbitrary to others. So, even if it is not complete, or accurate, set up an early measurement mechanics.
And, as always, happy entrepreneurship!
