Human Relationships And Business

Going into business is very much like being in a relationship. You spend a large portion of your time on it. Sometimes, when your business suddenly becomes demanding, you have no choice but to yield to it if you want to keep your business going.

Here are three important similarities between human relationships and business:

Commitment - Before one opens a business, a certain level of commitment is required if one wishes to become even slightly profitable. A business cannot be successful unless the founder or business owner is committed on making his business a success. A committed business owner will be able to give his company enough..

Time - Just as how you need to be on time whenever you have a date with your loved one, you have to be on time for work everyday. You might not have a boss, but if you always arrive late for business appointments and scheduled meetings, then your business won't have much of a future to hope for. Another thing that requires timelines in business is responding to client queries. If you fail to respond in a timely manner to client questions, complaints and requests, you are essentially telling them to transfer to your competitors. Often times when your schedules collide, you have to prioritize one over the other and learn to take...

Risk - Perhaps the most important aspect where business and human relationships are similar is the issue of risks. In a relationship, if you don’t take the risk of falling in love, then you will never experience the extreme joys and sadness of the human emotion. If you fear taking risks, then your business will never get off the ground. Even if it seems profitable now, you will always stay on that plateau and never achieve anything else of significance.

But that is not the only time when you have to take risks in both business and relationships. For instance, your loved one frequently forgets your important dates, or the two of you often quarrel. Your relatives and friends may even get involved and convince you to end the affair once and for all to save your sanity. Though it seems unrealistic to carry on with your relationship, you still hang on with the hope that it’s just a phase that you have to get over. In business, this same blind commitment is observed when your startup appears to be a failure. It’s that time when, no matter how much you try to improve, your products still fail to generate leads, your credit line is negative, and your employees have begun jumping ship. Add to that the fact that your competitor is rolling out one sensational product after another. For all intents and purposes, the most logical action would be to abandon the cause and build another business altogether or even consider getting employed. But that isn't the actual truth regarding the reality of things. Business owners and entrepreneurs are known to slave for years over their startups, even when the future of the said venture seems nothing but bleak.

Let us take Henry Ford, for example. The founder of the automobile manufacturing company experienced numerous failures in his dream of producing a reliable, efficient, and relatively cheap automobile. By continually taking risks despite being broke, he was able to achieve his business dream through the Ford model T and build an enduring company.

To make a business venture successful, you have to treat it as an important relationship by giving your commitment, time and learning to take risks. It takes considerable effort to make anything work, and businesses are no different.

How To Find Investors According To Mark Cuban

Dan Schawbel’s Sharktank Roundtable interview series provides great tips for entrepreneurs and businessmen from the eight hosts of the hit show. From that latest and last interview, here are 3 helpful tips to find investors according to Mark Cuban, a serial entrepreneur `nd a “Shark” in ABC’s popular show. Starting entrepreneurship early in his life, Cuban’s first venture was Broadcast.com which he eventually sold to Yahoo. His other businesses include: HDNet, 2929 Entertainment, IceRocket, ownership of the NBA's Dallas Mavericks, and a slew of other investments.

"Do everything you can to not have to seek outside money. Most companies don’t need more money, they need more brains." 

Asking other people for seed capital doesn't just mean that they will provide initial funding for your business that you will have to pay for in the future, they will also require other collaterals such a certain percentage of stocks, a position in the board of directors, or some other executive position. Before scouring the Silicon Valley for angel investors and venture capitalists to fund your business, try to fund your business by yourself first. This way, if the venture doesn't turn out to be as profitable as you initially perceived or your target business leads didn't see it as valuable enough to purchase, then you can stop the operations anytime without needing to worry about paying back any money you owe from someone else. Afterwards, you can easily start again with another idea that may bring in more business leads.

"If you do need money, know exactly how much you need, what you are going to do with it and how it will get you to profitability." 

If you really need outside financing, then you have to prepare a complete report of where you will be spending the seed capital that your investor will lend you. No one would lend you anything if you don't have any clear plans on where to spend them and how you will get the money back. Your report should include: how much you plan to spend on product R&D, your projected expenses for lead generation campaigns and marketing, the distribution expenses, employee salaries and office rent. There might be other things you need to consider as well, such as if you need to outsource certain operations to a BPO company or a call center. The point is that you have to make it as complete and accurate as possible so that you won't run out of money prematurely or borrow much more than you can afford to repay.

"Be ready to work your ass off. Raising money is not a destination, it’s a starting point. The minute you take money, you no longer are your own boss. You work for the people giving you money. Be prepared to work harder than you did before. Raising money doesn’t make things easier; it creates more pressure for success." 

Having an investor on board can be both a blessing and a burden. On one hand you can take more risks because you have someone backing your efforts, on the other, you have to choose the risks you take wisely because the same person backing you up is expecting a lot from you. You will have to work extra hard to make sure that you always have a steady flow of sales leads coming in.

There is little margin for error and failure when investors are involved so you have to think very carefully before you find one for your business.

The Issue About Honesty In Business

Nothing sours a great working relationship like knowing that that business relationship was based on a big fat lie. No business in any industry appreciates a liar because honesty is an essential part of any business venture. Why do you think it’s so hard for SMEs to get appointments with Fortune 500 decision makers? When millions of dollars in profits and the livelihood of hundreds of people are on the line, company executives and directors have to make sure that that critical decision will be for the benefit of all parties involved, and that critical decision won’t happen if honesty is not part of the equation.

Even white lies are not acceptable in the harsh environment known as the business world. Competition is a constant threat, and should your more aggressive competitors sniff out a deceitful statement, don't expect them to let you off the hook without a price.

This is best exemplified by Yahoo's recent dismissal of its (yet another) CEO, Scott Thompson. Thompson succeeded former Yahoo CEO Carol Bartz, but after only a brief 5-month term in service, Thompson was ousted by Yahoo. The reason? It seems Thompson thought that adding a degree in computer science to his resume won’t be much of a problem, considering a large number of tech CEOs these days didn’t even finish college. However, admitting that you don’t have a college degree and claiming that you do have one (when in fact you don’t), are entirely two different things. Thompson blames the resume gaffe on Heidrick & Struggles, an executive-recruiting firm that got him his previous Paypal position. However, it should be noted that not once did Thompson try to correct the bogus information on his bio, which means he was willing to continue playing the part of a “computer science engineer” had Daniel Loeb (founder of Third Point LLC and Yahoo investor) not checked his bio.

Others might argue that, in the case of Mr. Thompson, it is better to retain a liar who is skilled in getting work done than an honest employee whose work is only mediocre. Well I say let the liars lead and let's see where your company will be in 3 years! Your business might become lucrative, but in all probability, that business will no longer be yours. Another great concern here is the nature of Yahoo’s business. As an internet corporation, Yahoo handles large amounts of confidential client information. If the directors of Yahoo didn’t fire Thompson, how are they to expect users to continue entrusting their information with a company whose leader is less than trustworthy?

Honesty is the greatest requirement for integrity, and a leader's integrity is one that he should protect with the utmost care. Think about it, if a supposed leader needs to lie just to get the position he wants, it only means that he is not worthy to be in that position in the first place. Honesty is a moral and social obligation that should never be disregarded by business leaders, no matter what size of company they work in.