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 sixteenth article from the series 'How to practically implement SME governance'.
5 Tips for Successful Entrepreneurship
Amsterdam, April 8, 2022 - Entrepreneurship is simple. But the hardest thing there is, is to keep entrepreneurship simple. But why is that? Let's talk about that in the coming period. And also look at how that problem can be solved. Today, Route ICR shares the sixteenth article from the series 'Implementation of SME governance in practice'.
Perseverance, creativity, passion for your product or service, willingness to take risks, flexibility, commercial insight, and reliability. According to the Chamber of Commerce, entrepreneurs most often mention these qualities when it comes to the qualities of a successful entrepreneur. We would like to add 5 tips for entrepreneurs. Especially in their mutual interaction, these are decisive for successful entrepreneurship.
Tip (1) Crystal clear entrepreneurial ambition
To be able to steer purposefully, you logically need a goal. For entrepreneurs, the ultimate goal is equal to their entrepreneurial ambition. The focus we create with this is the starting point for steering and control. In other words, giving direction to and having control over the business operations of an ambitious entrepreneurship.
Tip (2) Structure as a hygiene factor
Structure creates clarity and support for yourself and your employees. It might be tempting to say 'yes' to everything. But it doesn't help to create the right focus. As a result, it is impossible to achieve effective and efficient processes.
Tip (3) Purpose-driven strategy
You have a better chance of success if you follow a strategy. And when following a strategy, focus is again very important. First and foremost for your marketing. For example, what value do you create for your (ideal) customer? Make sure to have a clear mission and vision (also within SMEs!), SMART objectives, and a tight business plan to achieve them.
Tip (4) Managing expectations
A gap in expectations between the executive room and the shop floor creates a lot of potential for improvement in many organizations. Delivering top performances requires a top team with highly developed team intuition. Managing expectations is a very important aspect of this. When people have clarity, they are more motivated and many times more productive.
Tip (5) Tight reporting as steering information
Measurement is knowledge. We all know the saying. But recording things is something many of us do not feel happy about. And that's why we tend to record less than is actually desired. That's a pity because as a result we often also have insufficient information to know where we stand. Whether it's about realized turnover, achieved margins, cash flow, or performances within operational processes. Think about the information needed to be able to steer (or adjust).
Actually, all of the above is nothing more than a way of thinking. Which also forms the basis for successful entrepreneurship. And therefore for a financially healthy company. Another good reason to implement corporate governance in practice in SMEs. The route to being a successful entrepreneur!