Key Elements Of The Entrepreneurial Decision-Making Process
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Entrepreneurship has its highs and lows and a decision-making structure is critical to sustain and grow the business. Let us examine them in detail
Many entrepreneurs take the maximum risk to get to their pot of gold. However, a good entrepreneur takes measured risk.
Question to ask is
What are the personal risks one is taking additionally?
How does one mitigate it?
Does this decision expand our purpose and help achieve it?
Does it add value to external and internal clients?
If yes then it is a go ahead. If not it needs to be thought through again at the drawing board.
A sales plan needs to address
No of clients to be added in a period week, month, a quarter?
Pipeline and strategy
One of the Zonal heads in my old organization used to say “Don’t tell me strategy? Share with me your pipeline. A very valid point indeed.
Does it fit into the current strengths of the team?
Does it require a separate entity?
Is the unit economics and growth viability likely? If so over what period?
What are the hindrances to the journey?
If it needs a different branding then it needs a different structure
If it needs a different mindset then it needs a different team.
If it needs a different team than it needs a different structure.
What is the key strength of the team?
Is it relevant to changing market conditions?
Are new strengths to be developed?
Any changes in HR Practices needed?
For most young companies the entrepreneur is the HR Head. Primary responsibility is to understand their motivation and drive.
If it is a stop-gap situation for them then it is not a win-win for the company.
Are the compliances in order?
Are there enough funds to fund one year of operations without revenue?
Are the accounts maintained weekly if not daily?
Is the funding in place for the next phase of growth?
7) Value proposition
Is the value proposition relevant to clients?
Is it based on a strong competitive advantage beyond product differentiation/low-cost advantages?
Is it scalable?
What are the limitations?
Constantly one needs to evaluate new and more sources of growth, they can come by way of disruption through competition.
Is your firm up the ladder in terms of visibility to clients?
Is it there on social and relevant medium?
Is there a marketing plan in place?
A plan would typically cover
Key geographies to be targeted
A focused approach to brand building through the right forum
Building communities online
- Leadership Team
At times it may be critical to expand the leadership team to create growth. However, checks and balances are essential to ensure that downside risks like the dissolution of the business, key terms on buyback if partners want to leave are covered in the agreements.
Legalities are an integral part of doing business anywhere in the world. From the appropriate business structure to relevant issues on copyright and patents to contract law, the issues can be numerous. If these are not addressed many initiatives may land up in business death. That said, some luck is also critical for the journey. However, when preparation meets opportunity we get lucky. Seize the day!