I have 3 important suggestions to give to all those entrepreneurs who are now working on the execution of their business plans. In other words, they are working hard to establish their businesses so that they can soon commence normal operations and earn profits.
Such entrepreneurs must adhere to the following rules:
ONE – Strictly follow the timeline of the event or the project, do meticulous monitoring of all activities, and go all out to ensure that your event or project does not slip into the time overrun.
TWO – Like schedule, also run through every single item of your budgeted project (or the event) cost and do not allow any cost escalation under any head. Minor cost variations here and there can be absorbed under the contingency margin already provided in the total cost budget. In the end, you must ensure that there is no escalation in your total project cost.
THREE – And finally, ensure that you do an excellent scope control for your event or the project. Be strict and do not allow any changes and/or deviations from the original business plan. If you frequently agree to change/modify the original plan – you will unavoidably overcapitalize your project and face several problems later.
Here’s what Rory Burke, author of “Project Management Techniques”, has to say:
WHAT DO YOU THINK?
Let me know in the comments section.
In this ongoing series #GreatMinds on my blog, I am shining a spotlight on the important ideas that some very successful people keep talking about in their public life.
I have been writing my blog for about 5 months now and many of my posts have been well received by my current as well as ex-students, frontline, middle-level, and senior corporate executives, aspiring entrepreneurs, blogging fraternity, and many freelance professionals in consulting and other domains. I have generally been writing on various areas of interest to my target audiences mentioned above – like business planning, entrepreneurship, operational strategies, marketing, value addition, working towards profit and wealth creation. I have also written on the importance of leadership, team building, communication, coordination, customer centricity, building competitive advantage, and several other knowledge pieces of interest and importance to my readers.
But then, what I am going to offer all my readers this weekend is altogether different. It is a total shift from the usual business and management stuff.
How did I get the motivation to do it? A few days back, I received a WhatsApp forward that gave me a jolt. It is the story of a young school-going girl who goes out of her way and makes an unthinkable sacrifice for her classmate – identifying, understanding, and regulating her emotions for her friend. The story teaches us, grown-up people, the true meaning of selfless love. I am not sure whether the story is a real one or a piece of fiction. I also do not know who is the original creator of this story. However, I am reproducing the story verbatim with utmost respect to the original author– whom I do not know…
Here’s the story:
“My wife called, ‘How long will you be with that newspaper? Will you come here and make your darling daughter eat her food?
I tossed the paper away and rushed to the scene. My only daughter, Sindu, looked frightened; tears were welling up in her eyes.
In front of her was a bowl filled to its brim with curd rice. Sindu is a nice child, quiet and intelligent for her age.
I picked up the bowl. ‘Sindu, darling, why don’t you take a few mouthfuls of this curd rice? Just for Dad’s sake, dear.
Sindu softened a bit and wiped her tears with the back of her hands. ‘Ok, Dad. I will eat – not just a few mouthfuls, but a whole lot of this. But, you should…’ Sindu hesitated…… ‘Dad if I eat this entire curd Rice, will you give me whatever I ask for?’
‘Promise’. I covered the pink soft hand extended by my daughter with mine and clinched the deal.
Now I became a bit anxious. ‘Sindu, dear, you shouldn’t insist on getting a computer or any such expensive items. Dad does not have that kind of money right now. Ok?’
‘No, Dad. I do not want anything expensive.’
Slowly and painfully, she finished eating the whole quantity. I was silently angry with my wife and my mother for forcing my child to eat something that she detested.
After the ordeal was through, Sindu came to me with her eyes wide with expectation. All our attention was on her.
‘Dad, I want to have my head shaved off, this Sunday!’ was her demand.
‘Atrocious!’ shouted my wife, ‘A girl child having her head shaved off? Impossible!’
‘Never in our family!’ My mother rasped. ‘She has been watching too much television. Our culture is getting spoiled with these TV programs!’
‘Sindu, darling, why don’t you ask for something else? We will be sad seeing you with a clean-shaven head.’
‘Please, Sindu, why don’t you try to understand our feelings?’ I tried to plead with her.
‘Dad, you saw how difficult it was for me to eat that Curd Rice’. Sindu was in tears. ‘And you promised to grant me whatever I ask for. Now, you are going back on your words.
“Was it not you who told me the story of King Harishchandra, and its moral that we should honour our promises no matter what?’
It was time for me to call the shots. ‘Our promise must be kept.’
‘Are you out of your mind?’ chorused my mother and wife.
‘No. If we go back on our promises, she will never learn to honour her own. Sindu, your wish will be fulfilled.’
With her head clean-shaven, Sindu had a round face, and her eyes looked big and beautiful.
On Monday morning, I dropped her at her school. It was a sight to watch my hairless Sindu walking towards her classroom. She turned around and waved. I waved back with a smile.
Just then, a boy alighted from a car, and shouted, ‘Sinduja, please wait for me!’ What struck me was the hairless head of that boy. ‘Maybe, that is the in stuff, I thought.
A lady got out of the car and came to me. She said ‘Sir, your daughter Sinduja is great indeed! That boy who is walking along with your daughter is my son, Harish. He is suffering from… leukaemia’. She paused to muffle her sobs.
‘Harish could not attend the school for the whole of the last month. He lost all his hair due to the side effects of the chemotherapy. He refused to come back to school fearing the unintentional but cruel teasing of the schoolmates.
Sinduja visited him last week and promised him that she will take care of the teasing issue…..
“But, I never imagined she would sacrifice her lovely hair for the sake of my son! Sir, you and your wife are blessed to have such a noble soul as your daughter.’
I stood transfixed with tears ‘My little Angel, you are teaching me how selfless real love is!’
The happiest people on this planet are not those who live on their terms but are those who change their terms for others!”
The Moral of the Story is…
We experience real love when we place the emotions and happiness of other persons over and above our own! In fact, what we perceive as selfless love is nothing but making an all-out sacrifice for your loved ones…
Change is the only constant in life. As entrepreneurs, we must accept and embrace the change as soon we recognize that change is necessary. You should look upon “change management” as the process of preparing your organization for growth and dealing with a marketplace that is dynamic and fast-changing. An effective “Change Agent” will strive to build an organization that is prepared to meet the challenges of his/her industry.
Here’s what Barack Obama, the 44th president of the United States, has to say:
WHAT DO YOU THINK?
Let me know in the comments section.
In this ongoing series #GreatMinds on my blog, I am shining a spotlight on the important ideas that some very successful people keep talking about in their public life.
As an entrepreneur, you must do a comprehensive analysis of the activities of your competition. This should be an ongoing business objective for your enterprise. You can develop a better connection with your customers and enjoy their loyalty only if you understand where your products rank in the marketplace. This will also help you build a competitive advantage and consequently improve your sales revenue.
Here’s what Bill Gates, an American business magnate, software developer, has to say:
WHAT DO YOU THINK?
Let me know in the comments section.
In this ongoing series #GreatMinds on my blog, I am shining a spotlight on the important ideas that some very successful people keep talking about in their public life.
There are no shortcuts when it comes to getting out of debt.
—Dave Ramsey
Cut your coat according to your cloth
It may seem like an obvious advice but— Capitalize only to the extent necessary! While you should have adequate capital with a healthy operating cushion (to take care of unforeseen factors/contingencies) – the temptation to overcapitalize and borrowing more should be avoided. Overcapitalization may increase your borrowings and increase your interest burden.
New entrepreneurs during the start-up phase can avoid buying land and constructing buildings – they can instead work from leased premises or factory sheds.
Major plant, machinery, and equipment can also be leased out to save on initial capitalization cost. Entrepreneurs can also work from a well-established and recognized incubation centre to start with.
Bootstrapping start-ups
Entrepreneurs may also resort to bootstrapping during the start-up phase. Bootstrapping is a situation in which an entrepreneur starts a company with little capital, relying on money other than outside investments. An individual is said to be bootstrapping when he/she attempts to found and build a company from personal finances or the operating revenues of the new company. Bootstrapping helps an entrepreneur conserve funds (cash) till he/she reaches the stage of external funding from the Banks and/or DFIs.
It is a well-known fact that many entrepreneurs fail or are forced to exit from the business during the initial period of risk— which may vary from few months to 2-3 years! Bootstrapping is an excellent concept to insulate the entrepreneurs against such risks.
Once the entrepreneur has crossed the initial vulnerable period of risk and uncertainty and has learnt the art and science of doing business and handling money, they can always plan to build their assets and terminate all lease arrangements in stages.
Don’t be miserly. Be financially frugal!
For an initial period of 2 to 3 years – you, as an entrepreneur, must be very critical while spending money – your own money or borrowed money. Even after 2 to 3 years when your business is well established and is running well – it is nice to remain financially alert, frugal, and prudent. I am not suggesting that you be a miser and/or have a narrow focus or short-term perspective of things. All I want to say is that you must always do the necessary cost-benefit (either a quick verbal check or a structured study) of any aspect, offer, or proposal before making any financial commitment. The application of the cost-benefit concept should not be limited to only fixed assets. It is a versatile concept and should be applied in all situations whenever and wherever a cost is involved.
Always ask – What is my cost? What benefit do I get?
Any business or project must be adequately funded with a judicious mix of own (equity) and borrowed funds (debt). The equity portion will comprise the contribution of the promoter(s), investments from relatives, friends and associates, few private placements, and from the public if a public issue was envisaged. The debt portion can come from many sources like term loans from national level banks and development financial institutions, SFCs, SIDCs, and many more sources including international institutions. The main promoter must have enough means to mobilize his contribution to hold a worthwhile stake in the business. S/he may do so through the support of his family, friends and associates as indicated above. Additionally, the promoter may also approach angel investors, private equity firms, and venture capital funds for support.
A word of caution
And finally, before I end – a piece of advice to all those qualified professional entrepreneurs who resign their cushy jobs to enter business and land into a trap soon – only and purely due to their over-ambition to grow fast and becoming rich overnight. They borrow heavily out of sheer enthusiasm to take advantage of higher financial leverage and consequent quick growth – most often – to land into trouble. Such entrepreneurs, apart from paying higher interest on their huge borrowings also lavishly spend on swanky offices, cars, overstaffing, advertising, promotion, and other items.
Most of the times, many such expenses are not justifiable when you look at their original business plan – but then these are done because of lifestyle reasons or the ego of the main promoter/ entrepreneur. Whereas there is no harm in building up all such expenses if these follow the original business plan and can be absorbed in the projected cost of production. Expenses that result in improvement of the value chain, can offer a competitive advantage to the firm, and result in improved bottom line through higher value addition should be welcome.
One must however exercise adequate caution against random and unplanned (at times – arising from whims and fancies of the entrepreneur) expenses which only erode the bottom line.
Do you have a habit for spending money that you do not have?
Are you planning to borrow to acquire some assets? How about the interest you will be paying on these borrowings? How long will it take you to repay the entire loan? Are you comfortable with these questions?
Most importantly — Are you trying to fit in your lifestyle with that of others?
Teamwork is the foundation of all successful management. Getting people to work together effectively is the manager’s main job. Communication is the cornerstone and motivation is the mortar that holds the team in place. The success of a manager or leader depends a lot on his own creative fusion of aggression and affection as also the productivity, sensitivity, motivation, and cooperation of his team members.
Here’s what Henry Ford, American industrialist, business magnate, and founder of the Ford Motor Company, has to say:
WHAT DO YOU THINK?
Let me know in the comments section.
In this ongoing series #GreatMinds on my blog, I am shining a spotlight on the important ideas that some very successful people keep talking about in their public life.
Sustainable development is a pattern of resource utilization that meets the needs of the present but at the same time takes care of the needs of posterity (future generations). The three competing requirements of this model are the environment, society, and economy. Sustainable development is at the confluence of these three major elements. Sustainable development can be seen as economic development of the society in equilibrium with the supporting ecosystems.
Here’s what Kofi Annan, a Ghanaian diplomat and the seventh Secretary-General of the United Nations who also was a co-recipients of the 2001 Nobel Peace Prize, has to say:
WHAT DO YOU THINK?
Let me know in the comments section.
In this ongoing series #GreatMinds on my blog, I am shining a spotlight on the important ideas that some very successful people keep talking about in their public life.
You are considering starting your entrepreneurial venture at a particular location within a town, city, or state of India. Pause for a while and think aloud – who are the people/agencies and what are various aspects and/or factors – that are going to help you in your endeavour? The absence of such people and factors may work as a hurdle in your progress or at least slow down your progress.
Your business or entrepreneurial ecosystem is nothing but a constellation of all such people, companies, and government/non-government agencies that surround and support you. They help you develop your start-up in your region and provide much-needed acceleration to your efforts.
An entrepreneurial ecosystem comprises multiple stakeholders who come from both the private and public domains, interact among themselves and help promote the creation of new businesses, economic development, and value creation within a geographical area.
I firmly believe that an effective ecosystem includes start-ups themselves, their founding entrepreneurs, employees/teammates, contract persons, and all other funding agencies like Banks, DFIs, Venture Capitalists, Angel Investors, crowdfunding agencies and others. I would love to include various incubators (within and beyond IITs in various colleges and universities), co-working spaces, community groups, various bloggers, those organizing business plan competitions, technology and other support organizations. A supportive ecosystem will also include various consultants, advisors, experts, professional service providers, law firms, accountants, and investment bankers.
The marketplace is growing fast, and rapid development is taking place everywhere. Companies that were never into digital marketing are now looking for content writers and social media managers after COVID-19. In such cases, retaining existing talent turns out to be more economical than getting new talent.
The place where you establish your business can have a great impact on the success of your business. Do you have a family-based business in your hometown, and you want to do your new venture at the same location? Or you are open to moving to any location which suits your project. It is not always an easy decision and several social and emotional factors (besides professional and logistical) come into play.
As brought out above, your ecosystem has a great role to play and can impact your business success in a big way. There are places like Silicon Valley, Montreal, Mumbai, or Gujarat which are conducive to entrepreneurial growth. Then you have Uttar Pradesh and Bihar in India which are not so supportive of entrepreneurial growth. We have several examples of entrepreneurs who moved from eastern to western India and flourished. Others moved from western to eastern India and flopped. There is nothing sacrosanct about it and there are also many exceptions.
Each business is also an ecosystem like a family!
Having decided on the broader locational aspects, entrepreneurs can work from home or virtual office initially. A small office or workplace can be set up later. I have seen entrepreneurs who have started business sitting all day in their car/vehicle. One can always rent a desk in a business centre depending upon the need. Even, Business Incubators can also be a good option depending upon the specific situation – more particularly if one is handling a scientific or technology-based business. There are umpteen number of options – all will depend upon your specific circumstances and priorities.
If you want to own your premises – it may involve acquiring land and constructing a building. Alternatively, you can rent or lease suitable premises. An administrative and marketing office at a prominent location may however be necessary depending upon the kind of business you are doing. A proper cost-benefit analysis must be done for all options before arriving at a decision.
Before I conclude, I would like to mention certain crucial aspects that are essential to ensure that entrepreneurial ecosystems promote self-growth as well as the growth of entrepreneurs. These are:
Entrepreneurs – People who work hard to grow and create value.
Talent – The organization will grow only if the talent is brought into the company, trained, retained, and nurtured.
Knowledge – Entrepreneurs require help in terms of knowledge and resources, especially at the beginning. Entrepreneurs must recognize the talent who provide knowledge and retain them.
A Conducive Culture & Enabling Leadership – Conducive work culture and policies. Effective leadership will also provide various kinds of support to the team.
Critical Resources – Availability of finance, human capital, and markets that are venture friendly for products. Availability of Legal Framework and Support
Diversity – Diversity and Inclusion in the entrepreneurial ecosystem.
The growing entrepreneur must understand the importance of planning and control, working through budgets and schedules to avoid cost and time overruns, cost-benefit analysis, capital budgeting, break-even analysis, make-buy decisions, and many more basic concepts in finance and marketing. A proper MIS should be in place to keep track of the entrepreneur’s project.
David A. Kekich is a recognized authority on longevity science. In 1999, he founded “Maximum Life Foundation”, a 501(c)(3) not-for-profit corporation dedicated to reversing human aging and aging related diseases
Here’s what David Kekich, the CEO of Maximum Life Foundation, has to say:
WHAT DO YOU THINK?
Let me know in the comments section.
In this ongoing series #GreatMinds on my blog, I am shining a spotlight on the important ideas that some very successful people keep talking about in their public life.
There are occasions in life when we tend to accept any assignment or job even if we do not have an inherent liking for it. We reason with ourselves that we must do it because we need to earn a living and make a certain amount of money every day, every week, or every month. However, a situation like this should not force us to always accept what comes our way. We must always strive for the best. By “best” I mean something that you love, a work that you enjoy doing, something that sets positive vibrations in you and above all it excites you.
Here’s what Jeff Raikes, the co-founder of the Raikes Foundation, has to say:
WHAT DO YOU THINK?
Let me know in the comments section.
In this ongoing series #GreatMinds on my blog, I am shining a spotlight on the important ideas that some very successful people keep talking about in their public life.
