Building a New Business using LEAN Principle

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Building a New Business using LEAN Principle Image Credit: entrepreneur.com

So one of my partners was like he really needed to employ hands in his one year old company. He is a corporate entrepreneur and desires his venture to grow

into being a firm. Now he hires 2 staff one as a secretary and another as logistic officer. Good move. Problem is none of the hands he hires are as good as he is. He does the business development, facilitations and most of the correspondence. This got me thinking so what are you paying them for? When you can basically combine these tasks and save money.

Most corporate entrepreneurs fall victim of this, the idea of running an office with branches over the world seem to allure them into believing that we should setup a now now staffed up company before we have established a stable income source in the formative years. We sometimes think that more people equal more revenue as opposed to getting more revenue and increasing income of the few staff thereby motivating them to increase output which in turn creates more revenue.

LEAN means the founder does it all initially from sales to accounting to development.

This affords three opportunities

1. Saves Cost which can be ploughed back into the business

2. It affords the entrepreneur to keep a closer eye on the details of the business

3. It helps to form the company structure from a very informed perspective

Too many corporate entrepreneurs fall victim of this. Trying to put up the end from the beginning.

The owner of the idea is the best person to run the idea. Team is essential, but there is a limit to what team can do in terms of passion. The owner of the dream has infinite passion for his dream because it was conceived by him/her. But the aspect where he might miss it is the LEAN structuring. In as much as 2 heads are better than one, do not give a 50% stake of your business to a single person entity, this leaves you with 50% too. This totally negates the LEAN principle because you have to make decisions jointly, which sometimes may be at loggerhead with each other. One party may be going left and the other right, and if there is no cohesion the company may fall apart. It is better to stay alone and form out the structure of what you want first before you start bringing in operational staff. This way any staff brought in meets an existing Structure on ground and runs with it. This says Entrepreneurs have to be knowledgeable in every area of their business. Daily records, bookkeeping, accounting, marketing, sales etc. So that even when the company has been fully formed, he still has a working knowledge of each and every departmental functions and he is hardly cheated.

The idea of being called CEO from day 1, get into the head of too many burgeoning entrepreneurs and they fail to take it a step at a time. Having a LEAN structure helps you plan for unforeseen eventualities and manage them with minimal resources.

Bear in mind at the start you are a small entity and need a stable clientele base, this is more effective when you build personal relationships with your customers; this creates trust and loyalty for your brand and business. The best way to do this is to be personally involved from the onset not sending out representatives to meet with your first time customers to explain your own vision. Keep it LEAN do it all, lay the foundation first before building blocks of others on it.

Read 551 times Last modified on Thursday, 26 November 2015 08:55
Zachs Itodo

He is a management consultant, social entrepreneur, career coach, owner of www.mydreamwed.com and partner to the employability skills and entrepreneurship development project. You can follow him on twitter @zax4kam and his blog - zachitodo.blogspot.com.ng.

More in this category: « Entrepreneurship and its Bane

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