Lean Startups & Bartering Relationships (Part1)

Being self-employed, and a 'free agent' for the last 15 years, I have been asked questions pertaining to start-ups and sustainability. Here are my thoughts distilled over the years for those who are thinking seriously about taking that quantum leap of faith into self-employment. 

To start your own company, and launch it, you can start lean and still be mean. Key considerations are:

A) Have 12 Months of Salary

In case things do not work according to plan, you have a year's worth of savings to tide over your overheads. These include purchase of capital expenses (notebook, work-station, peripherals), operating costs (rental, staff salary, software,licenses, taxes), business expenses (transportation, travel, accommodation) and developmental costs (education, seminars, courses, books, DVDs, EBooks). Do your 'books' according to a simple plan of Input/Output, or Cost/Income. Learn about basic Accounting, if you will, as it is important to be compliant with taxation laws and enjoy prevailing tax reliefs and start-up benefits.

Now, this window of 12 months gives you an 'out', in case things do not pan out for reasons. You still have a sense of relevance and 'recency', as you have not been too long 'out in the cold'.

Leadership Lessons: Plan to succeed. Success comes with planning and working your plan. A 12-month bank of salary gives you an assurance that you can manage your current lifestyle or alter it. What endurance sports can teach us are values of patience, optimism, determination, persistence, and purpose. I used 'The Art of The Start' by Guy Kawasaki as a working manual, and it has useful orientations for business start-ups and entrepreneurial approaches. 

Catch My (D)Rift?

In Africa, animals take these long exoduses across the continent called The Great Rift. The African Rift Valley is also a great line of geographical fault, equated with the tensional forces on the tectonic plates. It forms crests and troughs, thus beautiful valleys with beautiful flora and fauna.

Exodus also refers to departures of people from an event, place or relationships. When they stop supporting a cause, or the cause diminishes in value or favour it would be time to seek another cause worth supporting.

We can experience rifts in our relationships. A rift is a fracture or split in our relationships. It can manifest itself during conflicts. This may lead us to avoid, compete or be accommodating to others. Sometimes, we choose a ‘time out’ or ‘take a break from each other’ so as to refocus and regain our ‘centre’.

When a staff leaves our company, it can be a bitter-sweet event. What is left behind may be a ‘vacant sense’, or power vacuum. Do you support the person or the cause? Or, is it about discovering inconvenience because you cannot delegate to them anymore? Working with the ‘generation rift’ can create drifts from our intended outcomes. How can we reconcile the differences and create uniqueness out of them?

For endurance athletes reading this blog, there are those of us who are contemplating a drift to non-M-Dot sanctioned events. Too many compromises to races only create disappointment and dismay. IT can only lead to the inevitable conclusion that there will always be a ‘live-with-it’ SNAFU factored into the event. Ironman China 2011 announced recently that its swim leg would be cancelled due to forces beyond their control. This has tossed the plans of many participants into disarray. On the other hand, creating a new location for the 226K-race may entice others to consider a race-vacation format for their precious personal time.

It was reported also that the average income of competitors is US$160,000 annually. Really? Time for me to look for loose change between the fold of my cushioned armchair!

Whenever a commercial race has been compromised, participants may insist on a refund. Unless they have been fully compensated, they will experience ‘Buyer’s Remorse’. Buyer’s Remorse leads to loss of loyalty and distrust for the organization or brand. Few people enjoy a continuous spate of good bargains; we get fleeced, sometimes. Instead, seek ‘gain-gain’ relationships. ‘Win-Win’ is, probably, a myth for ‘win-lose’ is a likely outcome in competition, conflict and ambition.

In wanting to appear smart, sometimes we allow ourselves to be easily swayed or pressured to change. Stick to your plan, strategy and vision. Make the occasional corrections when you deviate, yet do not steer too far away. Keep to the yellow brick road.

We experience highs and lows in our lives; most of these are manageable when we put some time and effort to address it. If we feel emotionally affected, give it some time to release, or do something else to change our physiology. Movement can be very helpful when we experience the dips in energy through emotional responses. It is certainly acceptable to be in an ‘emo’ mood!

Catch my drift?

Leadership Lessons: When was the last time you made an exodus? Under which conditions will you make an exodus? How do you recover when you experience emotional drifts and relationship rifts?

Reasons To Partner In Your Business

The future of business development and growth is in strategic partnerships and alliances. Collaboration is the operative word. No person is an island, so we have to build bridges across to another land mass. With active networking, we can build vital links to hearts and minds – if we are to promote and instill changes (for the better). Volunteers, retailers, customers, consultants, community members, family and friends – all these relationships involve partnering.

When I started my own small business 11 years ago, I realized early that I could not do it alone. I also learnt that my journey would be made more meaningful and worthwhile if I worked with others. I focused on work that would offer mutually beneficial outcomes. Business is about ‘busy-ness’ and the busier and involved you are, the better it would be in developing your value. When you engage with partners – and these can be short-term, project-based partnerships – you enhance your capability. Sharing is a value appreciated by many. Sharing involves the spirit of generosity.

How would you approach partnering in business?

1)    Build rapport with people around you. Be liked.

2)    Enhance existing relationships with others – keep building value with them.

3)    Never burn bridges – you never know who may engage or employ you one day.

4)    Do active networking – follow up with each contact, and create further connection.

5)    Not every social occasion is a business occasion. You don’t have to bring a box of cards to dinner. Enjoy the company.

6)    Seek partners with differing skills and expertise. Integrate diversity.

7)    Complement your partner by bringing your expertise to the relationship.

8)    As long as you don’t feel threatened by others, partner up.

9)    There is perceived and potential value to larger, partnership-based, projects that you can do.

10) Sharing of resources and co-branding. Synergistic effects can lead to added value and reduced expenses.

In recent months, I have been involved and engaged in new partnerships. It has been enriching thus far, and I expect we would earn our cumulative value in terms of new experiences, relationships and potential. Give, and take in your partnerships. Have ‘clever-rate’ with you, when you collaborate.