Entrepreneurship, by its very definition, requires the management of resources for the creation of services and products in return for financial profit. Many times, young entrepreneurs are very sure that the most important factor for business growth and success is cash – money. I daresay that this is a big mistake. Cash is important to the success of any business endeavour, but my opinion that human resources is the most vital factor in building a business. If you want to build a great business, assemble a great team.
To Build A Great Business
Of the different factors of production, perhaps the most difficult to obtain and to manage is human resources. By human resources, I mean, the right team. Not just a team – a winning team. With a winning team, any business will almost always pull through even the toughest situations. I will define a winning team as one that has every necessary role filled with exactly the right people for it. Those individuals do not have to be the most brilliant people around, but they must be competent, dogged and be fully committed to the team’s goals.
A Great Team
An individual can achieve commendable things alone. But he or she will hit a plateau at some point. He can only go so far. It is okay to start alone, but if your business grows at all, soon you will see the need for a team. Here are a few key points about great businesses and great teams:
- No great business has ever been achieved by the sole work of an individual
- No matter how smart, intelligent, knowledgeable or skilled a person is, he is infinitely limited if he does not function as part of a team
- All great businesses became so only because of great teams
- Assemble a great team – a team of people who fit the required roles perfectly, round pegs in round holes
- Delegate to team members according to their skills, then let them do their job. Stay out of their way. Your team members can handle certain tasks better than you can
- Treat your team members with respect. You are not doing them a favour having them on the team. They are going to be the reason why you succeed. Instead of treating them badly, if you really feel that an individual is a liability to the team, just let them go and have them replaced by a more competent person.
- Lastly, build structures and processes for your team to run on. Great businesses are built by great teams who run on well-oiled structures and processes. The result is a business entity that runs well with minimal daily “interference” from you, the founder.
Let me repeat it: human resources is the most valuable factor of production. It is also the hardest to get right. Start assembling your team today.
To your business success!