Advise for Young CEOs & Founders

Advise for Young CEOs & Founders

1 0
Read Time:7 Minute, 54 Second

By Munyaradzi Zindi Chikomba

  • You Are The Engine Of The Business Model

As a founder you are the engine of the business and everything that transpires in the company.

In the formative stages you may are a solo effort trying to establish something. You will be the CEO, CFO, Manager and Marketer. You are practically everything you need hence the need to know the nitty-gritty of every department because you may not have the financial bargain to hire people.

Your business growth is determined by how you are willing to work long hours and sacrifice every minute giving life to your business. A CEO does not sleep he is always trying to figure how they can structure a better business model.

Even when you have hired a few employees its still your duty to monitor and give direction to the company remember the employees are there for money not your dream without a salary they wouldn’t be there.

  • Have a Clear Business Model

A business is the activity of making, buying, or selling goods or providing services in exchange for money by definition.

Your model should be crystal clear because if not your direction as a business is jeopardized. Many companies have gone into the drain because they lacked a clear model, a model gives you direction, understanding and appreciation of your business. Your model gives you a clear demarcation on the choices to make.

If you can’t understand your own business model as a CEO you are prone to new employees coming into the company and divert your model to suit their ambitions. As a the engine you don’t know everything you should accept advice but be mindful that some people have built companies inside other people companies.

Some employees have aspirations and may swindle you to venture into their areas of interest so  they can start building their own company inside your company.

  • Know The Right Places & People

This topic has been exhausted enough in the recent times because its critical for every young business owner and aspirant.

Many call it networking and networking isn’t just knowing people but knowing people so that they also know you. Being known by a prominent business person isn’t enough they should go on to do business transactions with you and also introduce you to their network. This can only happen if they are confident in your business.

Many entrepreneurs desire to be networked but mere networking does not change your bank account position. A CEO or founder should attend events and make a lasting impression that will encourage people to connect and do future business with you. You should be able to pitch yourself and your business to people so they know who you are and what you do.

Another misconception is that a CEO should network with the affluent and the rich which is very misleading. What you need is money not phone numbers or pictures with the rich people. Don’t ignore the people the ordinary person because they are more likely to buy your product than those rich affluent.

Every person is important and you should impress them so that they buy from you. Network with every class you are still growing, you need everyone on your side.

  • Financial Discipline Is Everything

If you are selling a good product and packaging it well eventually people will buy and in turn you will have a lot of money at your disposal.

Never make the mistake of eating the seeds, your profit is your seed no need to hurry and change your normal lifestyle. Buying new clothes, living large, drinking everyday and partying is your way to bankruptcy. Another issue is don’t be quick to employ new people you can still do it by yourself or with a very small team. With the emergence of technology there is no need to have many employees utilize technology.

Patience is a virtue the longer you can wait to start eating the profits more life is given to the business. As a business person you should look groomed however it doesn’t mean you don’t know what you are doing if you don’t have the most sophisticated clothes, cars and gadgets.

Wait  until the business can survive six months without choking then spoil yourself responsibly remember if tomorrow doesn’t rain you still need to be in business.

  • Brand Management

Brand management is all about giving the best to the clients and making sure that the products you are offering are quenching the thirst of the customers.

The brand is very important because it becomes your identity in the market, it gives you a significant look unique from others. This is a do or die situation to every CEO or business owner because a brand is a representation of the company’s credibility. If two people buy from you and meet they should testify the same experience because your brand should always maintain the same experience to all its customers.

As the company grows so does its reach and this should be a wake up call to the management because as long as you haven’t created a brand you are prone to counterfeits products and copycats hence your clients should be able to identify your brand.

  • Know How To Leverage / Partner

Partnerships in business are a result of the ability to leverage and convince the next person hence you should have a convincing charm and humor to add to it.

Sometimes you can’t go alone Larry Page and Sergey Brin partnered to build the company Goggle. Sometimes swallow your pride and accept the reality that the business needs more life, join hands with like minded individuals.

A partnership can also make or break your business aspirations because mixing with the wrong people will disturb your personal life and business so diligence is key. No big business has done it own its own it has been carried by others because the world is big enough and you can’t service it alone.

When you have something they want you have power, use that power to leverage and get what you want also.

The Right Team

A team is a number of persons associated together in work or activity. The team behind the CEO represents the CEO and they know their CEO and the CEO knows the team too.

In sports a CEO is like the coach of the team hence the CEO should find the right team because a team with wrong players is bound to lose. Every team player should know their roles and is expected to execute them in time. The team always depicts its leader as the head you are required to give leadership and direction to the team.

One bad apple can spoil the whole basket hence you should be able to control and dictate the way in which conduct is done when it comes to the company’s affairs. The biggest issue is you can’t automatically change people. When recruiting read signs of bad apples and recruit people who have a clear vision of where they are heading with their personal lives and careers.

You don’t own people so know that and appreciate the fact people come and go, not everyone is meant to be by your side. New people will come and go again but the business and its vision stays.

  •  Knowledge With Stock Market

A right business model will grow and growth is imminent if you are applying the right model and strategies.

There shall come a time where you will require huge amounts of money to expand your company. A couple of options are available and stock market is no exception. A stock market is a system or place where shares of various companies are bought and sold.

In lame man’s language you are borrowing money from people to expand your business and in turn those people invest in your company as investors and they expect to profit from their investment in your company and they will have a stake in your company in form of shares.

One mistake never sell many shares which will leave you powerless because automatically by buying shares these people will now have a say in the company’s affairs.

  • Social Responsibility

Social responsibility is all about maintaining a good name in the society by giving back to the society and making sure that you are also a good role model.

Many businesses have the tendency of forgetting this important aspect, they think that they don’t have a position in the social responsibility equation. Business has changed significantly in the recent years especially in the turn of the millennium where big businesses have been focused on the CEO as a big public figure who has the reach to impact, inspire and add a voice in social issues.

This has been a result of social media where things have changed, big public figures are reachable and visible. The company should also be reachable and visible in the society. Being visible promotes your company in reaching new people and markets without direct marketing.

It’s not a must but if you can it will also benefit your business indirectly and directly. Don’t forget some companies are pardoned from taxes because fir their role in promoting communities development.

Article by Munyaradzi Zindi Chikomba a Research Analyst ||Development Consultant || Columnist || Editor @Perch Media Trust || Co-founder & Executive Chairperson @Shanduko Foundation. His views are personal and they do not represent any organization or institution he is part of.
0 %
0 %
0 %
0 %
0 %
0 %

The Entrepreneurial Magazine 2021 © Powered by AdsOnly Zim