In the part one of this write up, I
mentioned key things any organization desiring growth must not ignore. This concluding
part has more to say about the approach that guarantees growth and employee
loyalty.
Separate personal funds from that of the business
Most business owners have violated this
and can't seem to differentiate. Most treat all income as theirs and spends as
it comes without consideration for the liquidity of the business. When the need
arises for funding a transaction or the operation, pay salaries, etc it becomes
difficult to meet up due to the gap that has already been created. My personal
advice all employees should have a salary including the business owners and
effort should be made to limit personal expenses to the salary.
Don't support hypocrisy but acknowledge good
deeds
A little pat on the back, words of
encouragement and encouragement goes a long way in boosting the morale of the
staff with a resultant effect on their output, efficiency and effectiveness.
Never encourage mediocrity as nothing positive will ever come out of it except
to demotivate hard workers, reduce efficiency as man-hour is lost in cleaning
up the mess! Focus should be on the employee’s ability and not how good are
they in “boot licking” or the level of information you can gather on other
employees (most of the time, they are lies just to remain in the MD’s good
books) .
Encourage Personal Development
Most people venture into businesses they
know little or nothing about and when they eventually start the business they
get complacent and often fail to develop their knowledge of the business and
the environment further. Only the dead cannot improve its knowledge. Passion,
drive and flair without sufficient information and research to better
appreciate the workings of what you have passion or drive for is disaster in
the making. Seek knowledge and constantly develop yourself and your staff.
Always look for a better and more efficient ways of doing things.
Personal/self-empowerment and penchant for success should be your motivation.
Fail to plan; plan to fail
If a survey is carried out on companies in
the country, over 80% or more will be found without a clear and concise plan to
direct their efforts. Even when they have its hardly documented; it’s usually
in the head of the promoter! Most companies move with the tide and whatever the
environment brings. This accounts for the result of a recent survey that claims
over 80% of new businesses fold up within 5 years of operation and another 10%
within the next 5 years. Instead of being proactive, businesses only react to
situations.
Planning is essential as it throws up all
likely risks, challenges, opportunities, etc that the business will have to
contend with and prompt the business to take necessary step to avoid, take or
manage such. It’s simple, do you have a business plan for your business that
will cover the next 2-5 years. Consult an expert for this!!!
Manage your cost
Giving the dwindling revenue, unfavourable environmental
factors, reduced purchasing power, lover margins, increased competition, etc,
the next option is to manage cost of operation to stay afloat. Profitability
can only be enhanced by either increasing revenue or cost cutting measures. At
the moment, the former is completely out of your control to a significant
extent, so why not manage the portion that is within your purview.
Contract staffing, out-sourcing, etc has
made life easy and cheaper for businesses and the opportunity should
be maximized There are professionals that can be engaged to take the
stress of you and provide a more efficient and effective way of enhancing your
activity without increasing your overhead. It’s simply called FINANCIAL
INTELLIGENCE. Work hard to cut expenses/overheads to what is reasonable
except absolutely necessary.
Never hire who you cannot fire:
In business of today, avoid sentiments or
acts that can compromise your decisions or operation. You need to lead by
example and all operations must be above board and transparent. Remember, no
staff is indispensable as there would always be someone that is better. All
task, experience and knowledge should be transferable and not concentrated in
one hand that can hold you and your business to ransom.
Separate business from pleasure and family
matters from that of the business. It’s good to assist and support family and
friends in recruitment, contract, etc but concerted effort should be made in
putting boundaries; family/friendship should not be allowed to interfere with
the professional relationship.
Never deny your staff their entitlement:
There is nothing worse than having a bunch of disenchanted and
dissatisfied workforce on your team. Their focus and loyalty evaporates
immediately and shift to looking for another job and how to make extra money at
your expense. Staff benefits/entitlements add spice to the working
relationship. Failure to honour or meet the obligation should be based on a
genuine reason that is clear and obvious for all to see. Transparency is the
key and should be well communicated to avoid rumours and gossips.
