Starting a company part 1
A software developer wrote to me: “I have worked in the software industry for several years and want to start my own company. I have discussed with many friends, some encourage me and some discourage me. I am still undecided and need advice on starting a successful company. Please help.”
Answer: Becoming a company owner is not a job but a commitment. You will experience many ups and down, successes and failures. There are good reasons to start a company and also good reasons not to do that. You need to review both advantages and disadvantages then compare with your personal goals before making your own decision. You also need to understand your motivation of starting a company and only you can answer it.
Having your own company is about control your destiny. You are your own boss and you must make all decisions instead of having to ask somebody to make decision for you. Being a company owner is a business decision as well as a personal decision. As a business you must focus on satisfy your customers because you need customers. No company can exist without customers so you must learn to listen to them and control your own ego. As the owner of a small company, you must closely follow the industry trends and position your company ahead of the trends to seize the opportunity. This is something larger companies may not be able to do as quickly as small company. As the owner, you do not have to worry about pleasing your boss, or worry about whether you have a promotion or not. It is your decision and hard work that determine whether you do well or not. As the owner, you can build a team consisting of people of your choice. You select individuals who are dedicated, willing to work together, and ready to take the challenge to put the success of the business before their own personal interests.
Of course, starting a company requires a lot of time and money and it does not guarantee success. It is a risk that you must take and willing to accept the consequences. As the owner, you are responsible for your own finance because there is no one helps you. You must deal with everything in your company, from unhappy workers to unhappy customers. You must deal with many small things that you do not even consider at this time. You also have to deal with uncomfortable position like having to say no to a family relative who request you to give a job to their son or daughter. You may have to fire a good friend who cannot do a good job.
To succeed, you must have skilled workers. The first step of building a company is about having people who commit to your company. Without these hard-working, dedicated, you will not be successful. Many people start their company by hiring their friends or their relatives since they know them and trust them. This can be an advantage and disadvantage because in business, decision must be made as a business decision, not a relationship decision. You should select a number of workers that has a wide variety of skills and experiences, each with ability to work with your customers. A diverse team will be in the position to be successful more than a team that has the same type of people.
Workers are motivated by different things. Some want recognition; some want to build a career and get promoted and other just want more money. You should know each of them by simply ask them. Determine how each of them perform and reward them accordingly is the best way to keep employees. By paying attention to each of your employees’ personalities, you are able to combine your business’s goals with those of your team. That is the formula for success.
As the owner of a small company, how you feel and how you act is the most influence. If you are pleasant, your workers will pick up on it, and they will be more relaxed. But if you are critical, your workers will be nervous and their attitudes will change. Keep your own ego in check; you need them more than they need you. Make your decisions on business not on personal ego. How your company operates is exactly what you shape it to be by your own actions. If you do not care about your customers, so will your employees, and your customers will notice that too. If you do not care about quality and “Good enough” is what you direct then your workers will act like that rather than focus on the best quality possible for the customers. If you tolerate poor performance, than hardworking employees will not want to work hard and morale will suffer so you must be fair and act professionally. If you reward hard work, foster an environment of respect, ethical, and teamwork, and trust each employee to use his or her abilities to their full advantage, that trust and respect will translate to your clients, and you will be successful.
Sources
- Blogs of Prof. John Vu, Carnegie Mellon University
