For most small and medium-sized enterprises (SMEs), governance is something far away. In other words, measures of good governance are not yet part of daily practice. Particularly explosive growth and/or external demands, for example from an external financier, have changed this to date. Especially to make the likelihood and impact of risks manageable. Oddly enough, because fundamentally every entrepreneur wants to be successful and certainly not fail. Thus, corporate governance aimed at SMEs is actually relevant for every entrepreneur: it is about having control over realizing entrepreneurial ambition. And there's quite a lot involved. Therefore, we will be paying ample attention to this unexplored area in the world of the entrepreneur in the coming period.
Today, Route ICR shares the fifth article from the series 'How to practically implement SME governance'.
Crystal Clear Entrepreneurial Ambition as the Basis for Focus in Your Business
Amsterdam, September 8, 2021 – Entrepreneurship is simple. But the hardest thing there is simple entrepreneurship. But why is that? Let's talk about that in the coming period. And also look at how this problem can be solved. Today, Route ICR shares the fifth article from the series 'How to practically implement SME governance'.
In the previous articles, we have already frequently discussed entrepreneurial ambition. And especially about having control over realizing it. It's actually about purpose-driven entrepreneurship as the basis for success. Because fundamentally, every entrepreneur wants to be successful and certainly not fail. And it doesn't help if your business itself is leading, also known as the tyranny of the urgent, instead of your ambition as an entrepreneur. But how do you come to a crystal clear entrepreneurial ambition?
Crystal Clear Entrepreneurial Ambition
In just 5 steps, every entrepreneur can easily define his or her entrepreneurial ambition clearly. Step 1 starts with explaining why you became an entrepreneur and what you want to achieve with it. Realize that your ambition must be challenging. Set the bar high. Additionally, your ambition must be concrete and come to life! First, think from the knowledge and experience you have. Then involve your personal ambition and your personality as a person. Finally, assess whether your line of thinking fits with developments in the market & society.
How, When, Continuity, and Exit
Once your ambition is clearly defined, it's time to think about the route to follow. What steps do you need to take to achieve your ambition, and how much time do you need for each step? Once you know that, what is a realistic moment to have realized your ambition? And in what way do you make yourself dispensable in your business and ensure continuity? Think primarily about your leadership qualities. And last but not least, what does the eventual business succession and exit look like for you? It's good to think about that (regularly) as well.
Leadership Development Leads to Increased Productivity
Leadership development starts with a crystal clear ambition. Because a leader provides direction, and that cannot be done without clear goals. But also not without a viable business model with which you will realize the ambition and derived goals. To then structure your organization from those premises and create a plan with your team. This ensures the right focus and motivated people. Logically, this also makes your company much more productive. For a good implementation of SME governance in practice, it is therefore important that not your business itself is leading, but your own ambition as an entrepreneur!
