Need to start from Basics
2019-07-22When we play video games, we do not start from Level 17, we start from Level 1. We certainly wish to cross Levels 17, 18 and further, however in order to reach there, we have to master the initial levels first. We practice so much in Levels 1, 2 and 3, we become perfect in the basic levels and then we become ready to move up to Level 4. Then we feel the approaches we have adopted in mastering initial 3 levels are not sufficient to Play Level 4 and above, similarly we also need to change the approaches, in business, we call them implementing new strategies.
We need different ways of thinking to go to Level 4 and above. When we reach Level 10, we probably want to add some more applications, download few more supplementary games, buy few more upgraded versions, for which we need investments. In Video Games, when we reach higher levels, we have to invest in Technology along with HR and Marketing. In a gaming scenario, above-mentioned investments pertain to investing in technology, when we promote our achievements in Facebook and twitter, that’s marketing and of course we, ourselves refer to HR strength.
Starting entrepreneurship ventures or doing business is no different. When we analyze the history of all big multinational companies and high-value corporates, they all have started from small. They all have mastered in their basic levels and moved up the ladder with innovative strategies and investment in HR, Technology and Marketing.
Fourteen years ago, KFA started with Basic Training Center, now we have much-robust Training Division, a full-fledged Business School and a vibrant Consulting Division. Probably, we are at Level 8 and so much more to achieve going forward. Mission of KFA is to foster entrepreneurship in Nepal and this philosophy has been in-built in our system and within all our stakeholders including BBA, PGD, MBA students, Consultants, Academic Faculties and Professional Contributors, the whole Management, Board and Promoters of the organization understand and are well aware of this mission and combinely working towards helping small entrepreneurs start from basic level and see them grow from strength to strength and make solid contributions in the economy.
Recent initiatives like IdeaStudio initiated by KUSOM, Startup Weekend, KFA – Professional Entrepreneurship Group (PEG) and other initiatives certainly help these aspiring entrepreneurs to help shape their ideas into reality.
Understanding of Business Dynamics & Numbers:
In any business, there are front office and back office functions. Generating new business, meeting clients, talking about products and its values to the customer’s needs, making presentations, convincing the market and best customer service functions refers to Business or Front Office functions. Whereas, running efficient operations, transparent Governance System, MIS and Finance, Legal & Compliance comes under Back Office functions. Both areas are equally important and sensitive and entrepreneurs need to understand the strength or interest areas of the human resources in these respective areas. We have observed that these two areas require two different skill sets and therefore resource allocation according to interest/strength profile becomes very important.
When we start, we do not start from ‘What can we produce?’, we start from ‘What products do the market need?’. Existing and Potential Demand of the product must be the driving factor while emanating ideas and make them a reality. Therefore, a concrete ‘feasibility study’ based on assessing market demand of the product that you are thinking to launch is absolutely a necessity.
Next important thing in doing business is ability to understand and analyze the ‘numbers’ or ‘financials’. Even though we do not have accounting or finance backgrounds, we should be able to read and understand balance sheet, profit & loss account and cash flows. This will give substance to our efforts. Merely talking about the product and marketing them is not enough, we must be on top of the numbers.
Last, but not least by any means, Corporate Governance is another very important factor in business. By Corporate Governance, I mean, we must ensure the venture we are initiating must run by a System, which are broken down into relevant Policies, Procedures, Rules and Regulations. Sincerity, Integrity, Transparency and Corporate ethics are very important pillars of Corporate Governance.
I am sure, this article will be able to ignite a small fire of ‘entrepreneurship’ in the minds of young entrepreneurs in Nepal. Lets go.
-Resta Jha
The Author is Chairman of KFA, leading Institute providing Training, Education and Consulting Services to various sectors in Nepal.
