Tuesday 16 December 2008

Training your staff

A single project is finished by a whole team, not individual. But team comprise of individual staffs. Business owners always want to hire the good staffs for their company.

However, you need to pay a lot to hunt experienced experts. And even experienced staffs can also be out of date on the industry sector they work for if they do not learn things themselves continuously and/or get training on specific areas frequently. To be able to build up a good knowledgeable team – for the own benefit of your business and also to compete with others, a qualified training agenda need to be defined and be updated frequently based on the needs of your business.

Any expert in the company can be trainer for junior staffs in specific topics. The topics can be focused on soft skills improvement, technical improvement, business knowledge improvement and so on, depend on the wish and needs of each department. The method of delivering the training can also via many means such as online internal course, internal training session for team, internal training course for whole company etc depending on the target audiences.

Friday 12 December 2008

Building trust from client – by Quality of Service?

I asked my ex-boss, who is the owner of 4 companies focusing on 4 different sectors on how he could maintain such a good relationship with his clients and earn the trust from them. The sentence he advised is, “bring a cake to your clients sometimes”.

During the time we do business, we get to build a relationship with our customers. Whether they are long-term customers, short-term, big deal or just small deal; the unchangeable from our side is to provide the best service, the best support that we can supply to them. Any project with customers involves a list of steps, in which every single support is important. Your products can be at high quality, your services can be at top – but the way you introduce and deploy it to customer – especially on maintenance phase is the way to please the customers very much.

And also, do not forget to “Bring a cake to your clients sometimes”. We can support or give help on even non-related mutual projects, but on any chance that our capabilities can handle. You bring cake to others sometimes – and sometimes, you might get a cake back!

Things to prepare for starting up a business

You have ideas on products and/or services that your business will focus on? You have saved enough money to cover expense for a beginning startup period of your business? You also get some initial customers?

Well, those are still not enough for a well-preparation of a startup business. There are much more things that are needed to prepare, keep updated and improved during the life you setup and run a business.

The set of work and tips can be varied from business to business, from individual business owner to another. List below are based on my experience and from a link that I found simple, interesting but sufficient information.

a. Start building up your profile
A website which states clearly vision, list of service/products you provide, how to contact you are a good start for building up the profile.
Also, a pre-sales document package also needs to be built up. It can include a company introduction profile, a product introduction profile, a service introduction profile, user guides, product/service feature list or anything that you think is useful to let others/clients know more and detail about your business

b. Watch your cash flow
Be very careful with the cash flow. In business, there are many things from small to large that need to be handled and it is important to manage the cash within your budget.

c. Use your existing network
One of my friend introduce the concept of “Business to business”, in which any existing business can bring you another business based on its’ current network. In broader view, it is useful to utilize any of your existing network including business, family, friends, colleague, social network for your business. One interaction or relationship can bring you up with many other connections. Although not all connections can be useful or directly or indirectly involved with your business and just simply imagine the number of connections that you can get by utilizing and also extending the existing connections.

d. Be easy to work with and corporate with others
If you just smile when working with others, it is not enough. Teamwork is a very key factor for achieving the goal. When either working within your company or your clients, be teamwork. Things are accomplished by contribution of a group, not a single individual. In order to teamwork well, in my experience, apart from good communication and high responsibility , you need to be corporate with others, eager to share the work and let others feel that they feel happy and easy to work with you.

f. Set your goal
Be SMART. Simply to remember, simple to understand, but efficiently get to the point
• Specific
• Measurable
• Achievable
• Relevant
• Time framed

g. Follow your passion
The word passion itself does cover the key factor for any entrepreneur. You may face success; you may encounter failure and difficulties. But, your passion will drive you to never give up, but learn and be success from failure.


References:

Bart De Waele (2008). 10 tips for starting entrepreneurs. Barcamp Ghent 2. Retrieved 2008-12-10 from http://barcampgent2.wikispaces.com

Monday 8 December 2008

Myths about Entrepreneurship

There are a lot of preconceptions, theories and beliefs about entrepreneurship and entrepreneurs. Some may be true, some are not.

Twelve myths mentioned in “Building a dream” by Walter Good are as follows:

Myth 1 Entrepreneurs are born, not made.
Myth 2 Anyone can start a business. It’s just a matter of luck and guts.
Myth 3 Entrepreneurs are gamblers.
Myth 4 Entrepreneurs want to run the whole show themselves.
Myth 5 Entrepreneurs are their own bosses and completely independent.
Myth 6 Entrepreneurs work longer and harder than corporate managers.
Myth 7 Entrepreneurs face greater stress and more pressures, and thus pay a higher personal price in their jobs than do other managers.
Myth 8 Starting a business is risky and often ends in failure.
Myth 9 Money is the most important ingredient for success.
Myth 10 New business start-ups are for the young and energetic.
Myth 11 Entrepreneurs are motivated solely by their quest for the almighty dollar.
Myth 12 Entrepreneurs seek power and control over other people so that they can feel “in charge.”

We’ll discuss, do a reality check and evaluate whether those above myths are true or not in the following posts.


References

Good, Walter S (2003). Building a dream: a Canadian guide to starting a business of your own. 5th ed. Toronto: McGraw-Hill Ryerson.

Support System for Entrepreneurs in Jonkoping

Yesterday, I accidentally found some useful information for those who want to start up a business in Jonkoping. It is about support system for entrepreneurs in Jonkoping. The support system here is well-developed with the network of private companies, government bodies, county governmental bodies, trade unions, non-profit organizations and higher education. The creation of JIBS and SMED (Small and Medium Sized Enterprise Development) are results of two projects formed to strengthen the region and its businesses.

The most important actors in the support system in Jonkoping are as follows:
  • Science Park
  • Jonkoping University / JIBS
  • SMED (Small and Medium Sized Enterprise Development)
  • The County Council
  • The County Administrative Board
  • The Federation of Private Enterprises
  • NUTEK – Swedish Business Development Agency
  • IUC – Industrial Development Center

References

Larsson, L (2008). The Support System for Entrepreneurs and Businesses. In McKelvie (6th ed), Entrepreneurship and Business Planning. Jonkoping.

Role Models and Support Systems

There are different factors which go in building successful entrepreneurs, such as change from present life style, childhood family environment, education, personal values, age, work history, role models and support systems, moral support network and professional support network which goes in building successful entrepreneurs (Panda, 2001).

According to Hisrich, Peters and Shepherd (2004), one of the most important factors influencing entrepreneurs in their career choice is the choice of role models. Role models can be parents, brothers or sisters, relatives, or successful entrepreneurs in the community. Role models can also serve in a supportive capacity as mentors during and after the new venture is launched. Although this support is necessary for the entrepreneur in every phases of the new venture, it is perhaps most crucial during the start-up phase. Therefore, the entrepreneur should build connections and networks early in the business development process.

Although most networks are not formally organized, an informal network for moral and professional support significantly benefits the entrepreneur.

Moral-Support Network
The entrepreneurs ought to establish a moral support network of family and friends. Their spouses are definitely the biggest supporters. Friends, the key roles in this network, can provide suggestions, advice, encouragement, understanding and assistance. Relatives can also be sources of moral support, especially if they are also entrepreneurs.

Professional-Support Network
The entrepreneurs need advice and counsel which can be obtained from members of a professional support network, such as mentors, business associates, trade associations and personal affiliations.

In conclusion, Hisrich et al. help me understand the importance of the connections and relationships in enterprise setup and growth. Each entrepreneur needs to establish both a moral-support network and a professional-support network so that he / she can acquire information and support for the new venture.


References

Hisrich, R., Peters, M., Shepherd, D. (2004), Entrepreneurship (6th ed.). New York: McGraw-Hill Irwin.

Panda, T (2001). Entrepreneurial Success: Key Indicator Analysis in Indian Context. Scholarly Article.

Saturday 6 December 2008

Gnosjö & The Spirit of Gnosjö

In this post, I’d like to give a short introduction of Gnosjö, one of the best known industrial districts in Sweden. The Gnosjö region consists of the four municipalities Gislaved, Gnosjö, Vaggeryd and Värnamo in the Jönköping County in southern Sweden.

In the old days, almost all families here had different companies and there are still many family companies here. According to my friends, who have lived there for several years, many people have come to settle here because of the jobs. During a period with high unemployment in Sweden a few years back, it was found out that one particular area - the region around Gnosjö in Småland - was least affected by the unemployment (Paludan, 2007)

Gnosjö is most widely known for its small businesses and successful entrepreneurship. The small municipality Gnosjö has approximately 350 manufacturing firms and around 10,000 inhabitants, which makes the density of companies to one of the highest in Sweden. The companies in this city have total sales of approx. 6 billion SEK (approximately $ 1 billion). This success has formed an increased awareness in Gnosjö (Pesämaa, Klaesson & Haahti, 2008)

Gnosjö is famous for “The Spirit of Gnosjö”, which means that the people here are very enterprising. Nowadays, the characteristic ingredient of the Spirit of Gnosjö - the unique tradition of co-operation - is still essential (www.gnosjo.se). The spirit of Gnosjö is portrayed in the media in terms of the positive consequences for the region such as large numbers of new companies, high profit levels and low unemployment rates (Sjöstrand, 2008). It reflects the professional skills, hard work, economic practice, humbleness, respect, network, cooperation, entrepreneurship, no hierarchy with powerful people, short distances geographically and mentally, flexibility, artfulness and thinking holistically (Pesämaa, Klaesson & Haahti, 2008).

Lastly, I'd like to recommend “The Spirit of Gnosjö – The Grand Narrative and Beyond” by Caroline Wigren to those who want to know more about Gnosjö and The Spirit of Gnosjö. It received a lot of attention in Sweden, and won her the award for young Swedish researchers in entrepreneurship (JIBS’s website).


References

Paludan, J. (2007). Changing forms of work in the global competition. Retrieved 2008-12-06 from http://www.cifs.dk/scripts/artikel.asp?lng=2&id=1519

Pesämaa, O., Klaesson, J. and Haahti, A. (2008). Board network characteristics and company performance in Sweden: The case of Gnosjö companies and their board members in southern Sweden. Rencontres de St-Gall 2008

Sjöstrand, G. (2008). Industrial districts thrive on gift economies. Retrieved 2008-12-06 from http://www.samfak.gu.se/Faculty+of+Social+science/News_and_events/News/News_Detail/?contentId=813285

The Municipality of Gnosjö's official website www.gnosjo.se