Starting A Business
Volume VIII
Who Do I Need ?
The Entrepreneur, whether he is the CEO of a Multinational Conglomerate or the owner of the neighborhood coffee shop, should be the only Jack of all trades. As such, he detains enough general knowledge to steer his emerging business through the danger of the business shallows during its launching phase (first 6 years). However he must surround himself with associates, partners and staffers who are at the top of their field. The members of his team must be experts in their narrow field. He, as the leader, must ensure that he gets the best out of them, guiding their skills and abilities expertly, so they all work harmoniously together, for the best of the company. The primary function of the business is to produce a widget or a service, and do so for a profit. So the Production Team must be headed by an expert. The Production team is the "Magic Machine" of the company, its pulsating heart. It needs an input system, to feed it the parts or materials it requires in order to produce the Widget or the Service, and an output system that will deliver it to the market. the Input/Output is the responsibility of The Logistics Team it should be lead by an expert in logistics. Logistics is not just about transport of the goods to the customer, it is also the proper "feeding of the magic machine" with what it requires from the suppliers to enable it to produce what is to be delivered to the market. However, for the customer to select the new company's Widget or service, he needs to know that the company exists and that it produces such Widget or service. That is the purpose of The Communication Team. That is the team who ensure that the company is noticed by its market target, and so, in a positive light. It is the team responsible to tell the potential customer, that the company is now established. It must indicate what is the mission statement of the company, and show what product or service it is offering to the customer. Once the Company is communicating adequately, and that the magic machine is ready to start producing and the Logistics team is ready to deliver, it is time to go out and start transforming the targeted market's consumers into existing customers. That function is the purpose of The SalesTeam. That team's role is to ensure that there are orders coming in. Without those, the entire enterprise is at a stand still. Sales are the fuel that keeps the "magic machine" going. These groups are the main components of a well organized company. There are essential to the survival of the company and ultimately its success. Nevertheless, they are not enough. For all of these teams to work well, they need to work together, they need to be paid, to be trained, to be informed of the day to day happenings, they need support, they need to communicate with each other. In other words, they need a central command and control post where all that is common to all of them can be gathered and therefore made accessible to all of them. The central nervous system of the company is the purpose of the Administrative Team. Its role is to support all the others teams. The CEO, is a Team all by him/herself. He is the Conductor of the Grand Orchestra that is the Enterprise.
The Production Team's task will be more or less complex,depending of which business category your enterprise belongs. If you are a service company, the logistics team will play a lesser role in the proper functionning of the Production team than if you were a manufacturer. However, the quality of the service or Product output will be largely influenced by the competence of your production team and particularly by the competence of its leader. If you are a small Mom and Pop shop, most likely, as the "CEO" you double as the Production team leader. That is perfectly fine, but keep in mind that cumulating two hats, does not exclude the necessity of fully performing both roles. Too many small business owners fail to keep reports and information flow from one department to another just because, the owner runs 2 or 3 departments and that He/She does not need to tell him/herself what is being done. The error comes from the nearsightedness of that methodology. If the goal is to grow the business to a point where the Head of the Company, can shed a Hat, in this case that of the Production Manager, he/she needs to detach the two distinct roles administratively, so whoever comes after, can follow on the same path and follow the establish track record and methodology. If all is "In The Head of the Boss", no one will be able to alleviate the burden of the Boss. That is often why so many small business owners, risk their health by taking too much on their own shoulders for too long. The lack of proprerly laid out system and work process for each department, and within the department for each position, is a receipe for disaster. Should something happen to the "Boss" the company is left like a headless chicken, flapping its wings aimlessly. The other risk is that of the Owner's chance of reaching a "Burn Out" phase. From the first day, run you company exactly the way you would like it to be run 20 years later, after it reached the size you wish it would.
The Logistics Team Leader is usually a highly organized individual, able to multitask continuously on several levels. He leads a team that comprises, purchasing any item required by any department in the company, with the exception maybe, of office supplies, (which come under the responsibility of the Administrative team). His/her team will coordinate the reception of all the incoming goods, materials and supplies for the Production team. They also oversee the shipping of the finished product and its timely delivery to the customer. They negociate with the Suppliers in terms of quantities, price, delivery terms, modes and conditions of payments as well as the scheduling and frequency of delivery and shipping. As a result, this is the team that must communicate with the sales team the quantities still in inventory and available for sale, what is being discontinued or about to be depleted till further notice. They must also communicate with the Administration team, so billing can be synchronized with delivery and as per the terms and conditions agreed with each customer account. It must also communicate with the inventory team, to let them know what is coming and what must be leaving, but also what has been damaged or lost and therefore no longer available for sale. They must coordinate with the various transportation companies for both the Incoming goods from the suppliers as well as the outgoing goods being delivered and billed on time. Logistics is a key element to the proper functioning of a successful company. Its leader must be an expert advisor to the CEO, a pilar on which many sections of the company lean on for the support needed for their separate tasks.
The Communications Team is the artist that paints the portrait of the company and exposes it to the public. It is also its voice. Anything the public sees or hears of the company, must be approved by the Communication team at least, designed and produced directly by it at most. Without communication, the company image is left to the allegoric whims of rumor and desinformation put out by competition. If you don't put out a mission statement, if you don't tell the public who you are and what your company does and stands for, someone else will do it for you. Most likely, the image of you put out there by others will be to their advantage and not yours. The market needs will be fulfilled, if not by your company it will by the existing competition or future competition. Just as in the Universe, markets abhor a vacuum. If there is a need for a product or a service, sooner rather than later, someone will open a business to fulfill that need. If you are such a company, you will need to inform the market that you exist and that you do have the very product or service that is currently needed. Even if you do not have any competition (never assume you do not, rather assume the contrary), your market base must be informed that you exist if you wish to sell your product or your service. The Communication Team's duties go beyond, putting together and implementing a marketing and advertising campaign. Besides, the logo design, the print and other media messaging and branding, it is the voice through which the company communicates with the outside world. Every visible aspect of the company must be under the direct supervision of the Communication's team. The way the products are presented by the Sales Team, the message, the sales pitch, the color of the Buildings, the color scheme of the offices and plants, the type of cars and trucks and their colors, down to the very name of the company, the name of the products and even what the various company representatives say, to whom, when and where. All must be orchestrated by the Communications team, even what the CEO does, wears, says, goes, what he drives in public. It is very similar to what the politicians go through during the Electoral campaigning, and for good reasons. What is electoral campaigning if not a massive branding campaign of a Political figure? Politics immitate business not the other way around.
The Sales Team must be highly effective. Their responsibility is the most demanding, although the most rewarding. Their success will enable everyone else to proceed with their respective task. Consequently their failure will engender the failure of all the other teams as well. Again, Sales are the oxygen that allows the company to breathe. Without sales, there is no income to speak of, and without income, there is no budget. The entire company grinds to a halt. Sales is the most demanding and the most stressful of all the tasks. Its success depends not only on the top performance of the team members, but also of the top performance of everyone else in the company. The salesperson's sole responsibility is to convince the customer to part with his money in exchange for a product or a service the company will provide. However, the satisfaction of that very customer hinges on not only receiving the product or service, but on receiving it in a timely manner and for the expected quality/price ratio. That involves the logistics team's performance, which is responsible for delivering the product to the customer. It is also the responsibility of the production team to ensure the quality of the product or service is to the satisfaction of the customer. Nevertheless, should any team fail in their responsibility, the sales team will be suffering directly, since their remuneration is often tied directly to the ultimate satisfaction of the customer. All other teams, may share in the bonus plan if things go well, but nobody gets directly penalized in their personal pocket book, if sales go down. Nobody but the sales team members, that is. An account representative is the human face of the company the costumer sees. He/she is the one to whom all the frustrations are vented if the product is not "up to par", he/she is the one who gets the direct call from the angry customer, and he bears the brunt of the assault of the frustrated client. The sales person must be the most prepared, the most informed and the most willing to get out of his comfort zone on a daily basis. Sales are the one task that is not cumulative. Each sales must be built on its own, even a repeat order must be sold somehow, or run the risk to see that order be renewed by the competitor. Customer loyaltly is only valid if there is nothing out there that isn't "better". So constant training, motivating, informing must be the reality of the sales team members. It is one of the most stressful position in the entire enterprise, short of that of the CEO. Not just Sales Management, but even the common account executive position bears an unbalance amount of performance pressure. In many companies, sales position's remuneration is solely on performance basis. Some company offer, basic Salary, but most only allow a "Draw" on commissions. This means that the Income potential of the sales person is directly tied to the sales performance. No sales = No Money in the majority of situations. This alignment of common interest between the Shareholders of the company and the sales people, effectively makes them De facto partners with the owners of the company and ensure their utmost effort in performance. Training and motivation is key. Even the most successful salesperson can use a pep talk once in a while. Most importantly, having someone who is recognized as a very successful person in that field, giving them sales tips and advice on a very pointed situation, particularly a situation that seem, at times hopeless, can be a life saver and often one of the major reason, a downward sales trend is turned around. Therefore, regular, training sessions, seminars, conventions, "Training Vacations Rewards", particularly outside of the Work Environment can be very profitable to a company. Sending your entire sales force on a cruise, or on a trip out of town, all expenses paid, is the perfect opportunity to introduce a new sales promotion, a new line, a new product or any big change. The cost of the travel and lodging is easily offset by the fact that the entire sales force is in one location at the same time, effectively reducing the cost of communication, motivation and training, particularly for a large organization. It also brings down the cost of hiring the services of Professionals Sales Trainers such as Internationally renown Andy Preston, or Tim Robbins or someone of their caliber. Even a Mom and Pop Shop, should attend events such as those. Sales is an integral part of running a business. If your company is a small 2 employee company, chances are you need to attend those training more than anyone else, since one of the hats you are wearing is that of the sales person and Sales Manager. Professionals like Andy Preston, often have seminars open to the public on a regular basis around the wolrd. It is important that the company owner/CEO or Sales Director, have in his/her contact list a number of Professional Training Organizations, who can be called upon for information, training. This shameless plug-in for Andy Preston is simply because I have the priviledge of knowing Andy personally and can personnally vouch for his professionalism and for the results he produces for sales people. If your sales force is English Speaking, I highly recommend you look up what Andy can offer your company. But, that decision is yours, select Andy or some other organization that you feel best suits your sales training needs, but do not overlook that important aspect of maintaining a healthy team of Sales and Sales support. Their performance is the prelude to the performance of the company as a whole. It starts with them. Do not neglect your sales force.
The Administration Team is the one that fills in the gaps between everyone else. It is the ultimate support team. In fact Administration, can be divided into 2 general sectors:
The Production Team's task will be more or less complex,depending of which business category your enterprise belongs. If you are a service company, the logistics team will play a lesser role in the proper functionning of the Production team than if you were a manufacturer. However, the quality of the service or Product output will be largely influenced by the competence of your production team and particularly by the competence of its leader. If you are a small Mom and Pop shop, most likely, as the "CEO" you double as the Production team leader. That is perfectly fine, but keep in mind that cumulating two hats, does not exclude the necessity of fully performing both roles. Too many small business owners fail to keep reports and information flow from one department to another just because, the owner runs 2 or 3 departments and that He/She does not need to tell him/herself what is being done. The error comes from the nearsightedness of that methodology. If the goal is to grow the business to a point where the Head of the Company, can shed a Hat, in this case that of the Production Manager, he/she needs to detach the two distinct roles administratively, so whoever comes after, can follow on the same path and follow the establish track record and methodology. If all is "In The Head of the Boss", no one will be able to alleviate the burden of the Boss. That is often why so many small business owners, risk their health by taking too much on their own shoulders for too long. The lack of proprerly laid out system and work process for each department, and within the department for each position, is a receipe for disaster. Should something happen to the "Boss" the company is left like a headless chicken, flapping its wings aimlessly. The other risk is that of the Owner's chance of reaching a "Burn Out" phase. From the first day, run you company exactly the way you would like it to be run 20 years later, after it reached the size you wish it would.
- If you open a restaurant, and your goal is to have a chain of restaurant according to the same theme, then run that restaurant as if it was the first of many. Start working on the duplicatability of the formula from the very first day. The service method, the mission statement, the ambiance, the food served, the way it is served, the decoration and layout of the restaurant needs to be selected based on the duplicability factor. Every decision should be made with that in mind. (If I serve this dish, will it be successful in another location, will the theme be as popular in another location... etc).
- If you open a manufacture, building Widgets for the consumer, as the CEO you must be the expert Widget builder, if you are not, then you must hire someone who is an expert. You can not afford to have a production team led by someone who's knowledge and skills in the fabrication of your product, is mediocre at best. You need to have from the first day, someone who knows how to make a superior quality widget in the fastest most economical way. So pick your Production team leader carefully and once you have him, ensure that he/she remains on the top of their game by continuously providing training on better methods and new ways to improve production output, and quality of product. To do so, either hire the services of training experts in that field to come to your entreprise or send your production manager regularly to training workshop with the appropriate experts consultants in the field.
The Logistics Team Leader is usually a highly organized individual, able to multitask continuously on several levels. He leads a team that comprises, purchasing any item required by any department in the company, with the exception maybe, of office supplies, (which come under the responsibility of the Administrative team). His/her team will coordinate the reception of all the incoming goods, materials and supplies for the Production team. They also oversee the shipping of the finished product and its timely delivery to the customer. They negociate with the Suppliers in terms of quantities, price, delivery terms, modes and conditions of payments as well as the scheduling and frequency of delivery and shipping. As a result, this is the team that must communicate with the sales team the quantities still in inventory and available for sale, what is being discontinued or about to be depleted till further notice. They must also communicate with the Administration team, so billing can be synchronized with delivery and as per the terms and conditions agreed with each customer account. It must also communicate with the inventory team, to let them know what is coming and what must be leaving, but also what has been damaged or lost and therefore no longer available for sale. They must coordinate with the various transportation companies for both the Incoming goods from the suppliers as well as the outgoing goods being delivered and billed on time. Logistics is a key element to the proper functioning of a successful company. Its leader must be an expert advisor to the CEO, a pilar on which many sections of the company lean on for the support needed for their separate tasks.
The Communications Team is the artist that paints the portrait of the company and exposes it to the public. It is also its voice. Anything the public sees or hears of the company, must be approved by the Communication team at least, designed and produced directly by it at most. Without communication, the company image is left to the allegoric whims of rumor and desinformation put out by competition. If you don't put out a mission statement, if you don't tell the public who you are and what your company does and stands for, someone else will do it for you. Most likely, the image of you put out there by others will be to their advantage and not yours. The market needs will be fulfilled, if not by your company it will by the existing competition or future competition. Just as in the Universe, markets abhor a vacuum. If there is a need for a product or a service, sooner rather than later, someone will open a business to fulfill that need. If you are such a company, you will need to inform the market that you exist and that you do have the very product or service that is currently needed. Even if you do not have any competition (never assume you do not, rather assume the contrary), your market base must be informed that you exist if you wish to sell your product or your service. The Communication Team's duties go beyond, putting together and implementing a marketing and advertising campaign. Besides, the logo design, the print and other media messaging and branding, it is the voice through which the company communicates with the outside world. Every visible aspect of the company must be under the direct supervision of the Communication's team. The way the products are presented by the Sales Team, the message, the sales pitch, the color of the Buildings, the color scheme of the offices and plants, the type of cars and trucks and their colors, down to the very name of the company, the name of the products and even what the various company representatives say, to whom, when and where. All must be orchestrated by the Communications team, even what the CEO does, wears, says, goes, what he drives in public. It is very similar to what the politicians go through during the Electoral campaigning, and for good reasons. What is electoral campaigning if not a massive branding campaign of a Political figure? Politics immitate business not the other way around.
The Sales Team must be highly effective. Their responsibility is the most demanding, although the most rewarding. Their success will enable everyone else to proceed with their respective task. Consequently their failure will engender the failure of all the other teams as well. Again, Sales are the oxygen that allows the company to breathe. Without sales, there is no income to speak of, and without income, there is no budget. The entire company grinds to a halt. Sales is the most demanding and the most stressful of all the tasks. Its success depends not only on the top performance of the team members, but also of the top performance of everyone else in the company. The salesperson's sole responsibility is to convince the customer to part with his money in exchange for a product or a service the company will provide. However, the satisfaction of that very customer hinges on not only receiving the product or service, but on receiving it in a timely manner and for the expected quality/price ratio. That involves the logistics team's performance, which is responsible for delivering the product to the customer. It is also the responsibility of the production team to ensure the quality of the product or service is to the satisfaction of the customer. Nevertheless, should any team fail in their responsibility, the sales team will be suffering directly, since their remuneration is often tied directly to the ultimate satisfaction of the customer. All other teams, may share in the bonus plan if things go well, but nobody gets directly penalized in their personal pocket book, if sales go down. Nobody but the sales team members, that is. An account representative is the human face of the company the costumer sees. He/she is the one to whom all the frustrations are vented if the product is not "up to par", he/she is the one who gets the direct call from the angry customer, and he bears the brunt of the assault of the frustrated client. The sales person must be the most prepared, the most informed and the most willing to get out of his comfort zone on a daily basis. Sales are the one task that is not cumulative. Each sales must be built on its own, even a repeat order must be sold somehow, or run the risk to see that order be renewed by the competitor. Customer loyaltly is only valid if there is nothing out there that isn't "better". So constant training, motivating, informing must be the reality of the sales team members. It is one of the most stressful position in the entire enterprise, short of that of the CEO. Not just Sales Management, but even the common account executive position bears an unbalance amount of performance pressure. In many companies, sales position's remuneration is solely on performance basis. Some company offer, basic Salary, but most only allow a "Draw" on commissions. This means that the Income potential of the sales person is directly tied to the sales performance. No sales = No Money in the majority of situations. This alignment of common interest between the Shareholders of the company and the sales people, effectively makes them De facto partners with the owners of the company and ensure their utmost effort in performance. Training and motivation is key. Even the most successful salesperson can use a pep talk once in a while. Most importantly, having someone who is recognized as a very successful person in that field, giving them sales tips and advice on a very pointed situation, particularly a situation that seem, at times hopeless, can be a life saver and often one of the major reason, a downward sales trend is turned around. Therefore, regular, training sessions, seminars, conventions, "Training Vacations Rewards", particularly outside of the Work Environment can be very profitable to a company. Sending your entire sales force on a cruise, or on a trip out of town, all expenses paid, is the perfect opportunity to introduce a new sales promotion, a new line, a new product or any big change. The cost of the travel and lodging is easily offset by the fact that the entire sales force is in one location at the same time, effectively reducing the cost of communication, motivation and training, particularly for a large organization. It also brings down the cost of hiring the services of Professionals Sales Trainers such as Internationally renown Andy Preston, or Tim Robbins or someone of their caliber. Even a Mom and Pop Shop, should attend events such as those. Sales is an integral part of running a business. If your company is a small 2 employee company, chances are you need to attend those training more than anyone else, since one of the hats you are wearing is that of the sales person and Sales Manager. Professionals like Andy Preston, often have seminars open to the public on a regular basis around the wolrd. It is important that the company owner/CEO or Sales Director, have in his/her contact list a number of Professional Training Organizations, who can be called upon for information, training. This shameless plug-in for Andy Preston is simply because I have the priviledge of knowing Andy personally and can personnally vouch for his professionalism and for the results he produces for sales people. If your sales force is English Speaking, I highly recommend you look up what Andy can offer your company. But, that decision is yours, select Andy or some other organization that you feel best suits your sales training needs, but do not overlook that important aspect of maintaining a healthy team of Sales and Sales support. Their performance is the prelude to the performance of the company as a whole. It starts with them. Do not neglect your sales force.
The Administration Team is the one that fills in the gaps between everyone else. It is the ultimate support team. In fact Administration, can be divided into 2 general sectors:
- The Executive Team, which includes the CEO, oversees all the departments and keeps track of the progress of every team, monitors their work and efforts and ensures that each team receive all it needs in terms of goods, materials, information, human and capital resources. It guides the progress and leads the Team Leaders. He holds every head of department accoutantable for their actions and the action of their respective team members. He distributes the rewards and the punishments.
- The Monitoring and support team, mostly monitors each department progress or lack thereof, evaluates its needs and processes the administrative requests and all the communication between the department themselves and between the them and the executive team. It is in charge of evaluating the performances in terms of numbers. It is the team that produces all the data reports necessary for each department to function. It is the Central Intelligence Department of the Organization. All is gathered here. How much each department costs as it functions currently, how much will it cost if a particular situation occurs or doesn't occur. All past performances are evaluated and recorded by this team. All projected performance, are likewise calculated by this team. Compliance with the law in terms of licensing, permitting, tax declaration and payment are the responsibility of this team and its Leader. It manages and monitors the income streams and the expense flows. They are the unceremonious masters of the Cash flow, so vital for any company large or small.
In a SME (Small or Medium Entreprise) the Administrative team is reduced to simple bookeeping and secretarial tasks for lack of resources and the CEO doubles as CFO and/or COO. The need for an outside firm's auditing and accounting services is then even more relevant and highly recommended. It is important that you choose a firm with which you will be comfortable and build a relationship. It takes time for any team to really get to know your way of doing things, your philosophy and where you wish to take your company. Your Accountant, can guide you and help you take it there, while avoiding dangerous and costly financial "Pot holes" on the road. Choose carefully, choose wisely, choose a firm with experience in your field of business and knowledgeable of the laws of the various lands in which you actively do business. I can personally only recommend a few, here, in the US. One of these accounting firm is that of Joseph L Rosenberg CPA. I know Joe personally but I urge you to do your own research. Do your own due dilligence and select your Accounting firm carefully.
Starting up a business, large or small is one of the most challenging task. Give yourself all the chances you can and for all your skills and Knowledge, there'll always be only one of you. So surround yourself with the best expert available to assist you. Either as employees, partners, shareholders and outside consultants. Don't settle for the 2nd or 3rd best, go for the top of the line your resources can afford you. You need Experts in your board of advisors. You should be the only Jack of All Trades :)
