SUCCEEDING IN BUSINESS
- There is a sense of liberation that comes with being in business - you follow your own rules,
there are no bosses or managers to listen to and best of all you can put in all the hard work and
reap the benefits. Your efforts are not just a figure on the company’s profit charts.
- I know people who are happy working for someone else, where they don’t have to worry about risk.
They do what they are told, get their salaries, bonuses and promotions and are satisfied with that.
Well considering the current global economic meltdown, even these guys would be worried.
- Though becoming a business person sounds like an attractive proposition, I believe there are a few requirements for success.
- To run a business effectively, you need four forms of capital. The first form of capital that all of us are familiar with is ‘financial’
capital – the money you need to start, run and scale-up the business at the appropriate time. The critical ingredient for any venture is the initial
investment – without the money this bird simply won’t fly. There are no free rides and no short-cuts.
- The second form of capital that is essential today is ‘educational’ capital. Have you come across people who when given a task or an assignment ask themselves:
‘Can I do it? Can I do it?’. They are not sure they can do it. Others who are better educated and transformed through learning, unlearning and re-learning seem to
add just one word in front of the phrase ‘Can I do it?’. They ask themselves ‘How can I do it?’ The ‘how’ you get through education – via the process of reading,
learning and consistent training and development
- The third form of capital required is ‘reputational’ capital. I am sure that in this world you like to do business with those whom you like, those whom you trust and those who can help
you make or save money. But you first need to trust them. And trust does not happen quickly – you cannot rush the process of trust. It happens methodically and cumulatively.
- And the last form of capital, which is perhaps the most important, is called ‘relational’ capital – i.e. the ability to build relationships with everyone in your lives – all the contacts in your network of friends.
Development of relational capital requires an investment of effort and time. It is time invested in the right way that creates the right forms of relationships.
- Learn to connect with others, not just communicate! Some one once said, “Life is like a box of chocolates, you never know what you are going to get”. So even the most humblest person, like Freddy or Ujwala or Ravi, you meet might be able to
give you a helping hand when the time comes or just provide the business the edge it needs.
- There a few other key ingredients for success in business. Ask yourself the following questions: Am I prepared to work hard? Am I determined? Am I motivated? Can I carry out the work with integrity? Can I accept uncertainty (risk)? Do I have the guts?
Are my goals clear? Am I creative? Am I a (good) leader? If you’ve answered ‘Yes’ to most of the above questions then you could consider the business option. If you answered ‘No’, it doesn’t mean that you can’t become a businessman, it’s just that you must understand
what it takes to achieve success!
- Do something different. No matter what you do, do your own thing. Differentiation is perhaps the most important attribute of a successful venture. Not just for standing out in a crowded marketplace, but doing the little things inside the business in a way that is better than your competition.
And if you can’t invent a great positioning or process, you can always excel at personal service.
- Make sure you know what you are doing. Just because you have the money to invest and a brilliant idea does not necessarily mean it will work. Market research and knowing the business you are getting into will help. But don’t listen to all the advice. Most people have no idea how things work and
if you really want to be a great businessman, learn to drown out the critics, the nay sayers and people with useless advice.
- Look for a big idea, and be rational - there is no point taking a big risk if you have a small idea. Concentrate on expected value, which means the potential value creation times the probability of actually achieving it. So if your job is 100% secure, and the chances of entrepreneurial success are only 20%,
then compare your future salary against the expected future value of your venture (the 'payoff' times 20%).
- If the expected value (payoff times 20%) is more than your salary, then logically you should give it a try. However, most people are irrationally risk averse, so if the expected value is not vastly higher than their salary, they would opt for the more certain outcome. On the other hand, people who are destined
to get into business, are more likely to be skeptical about the security of their job, so they wouldn't assign a 100% probability to the so-called safe option.
- Learn to take some risks. Many great people would never have been great if they tucked their tails under their legs and ran for it. Don’t be afraid of failure – We should learn from Sir Richard Branson. He is respected both nationally and internationally for his entrepreneurial flair and business acumen.
We often forget that apart from his large number of extremely successful business ventures, he has had a number of projects that have failed (Virgin Cola). One of Branson’s particular strengths as a businessman is his ability to know when to call it a day on a particular venture when it is not working. He is not afraid of admitting his mistakes.
- Many people are attracted to the fame, wealth and lifestyle associated with being in business, but the truth is that there are only a handful of wealthy and famous businessmen and they have struggled and worked extremely hard to get where they are. I would also like to believe that they have had their share of good luck. Also, they work with good people.
Life is too short for anything else, and good people do good things. Stick to ethics – live by the principle that the softest pillow is a clear conscience. Money isn’t worth getting into trouble or ill repute. And you will soon find out how small the world really is and how it iterates upon you.
