start ups – The Metrognome

Start ups should not be too ambitious in scope, despite regular funding. Keep your goal large but your scope small.

by Reyna Mathur

Jignesh Parikh runs a web solutions company in Mumbai with his college friend and partner, Ketan Joshi. The duo currently caters to about 20 national clients, and is in talks to increase their office space and staff strength this fiscal. “We have been in business for 10 years now, and it is this year that we are going to increase our office size for the first time. Till now we have been operating from a 10×20 space, which has a low rent and maintenance costs. We have been fortunate to receive so much business despite only five staff members for so long,” Jignesh says.

Despite the modest nature of their office, their business is experiencing a turnover of Rs 6 crore for the last two years. “We realised early on that we were in the digital business, which does not require a posh office. It requires a robust computer and Internet setup, so we invested our initial money in them.” Low overheads and only a minimal staff – all of them web developers, two of them freelance staffers – ensured that of the hefty profits made, only a small portion went towards payments every month. Eventually, the duo has now made enough money to move into a bigger office and hire two more full-time staff.

It is quite easy to run your own start-up provided you are clear in your mind about not wasting your resources for any reason, and are prepared to not even have the money to afford the rent on an office in the initial period. If you get a few basics right and change your approach, you can start small but have big returns on your initial investment.

You are there to do business, not to impress others. No business person in the world, unless backed by a strong funding model, has the means to have a huge staff and a posh office on ownership basis. When you start your enterprise, realise that you are starting it to realise a personal goal, and not to impress people with how big and well-equipped your office is. Many start-ups insist on putting in all their money to keep up appearances, which ultimately leads to huge losses (especially if the expected turnover doesn’t happen). For example, if you have just opened a café, don’t invest in too much imported equipment and staff. As more and more customers begin to trickle in, you can look at investing more money.

Don’t take an office if you don’t need one. Some businesses, especially freelance ones, don’t need an office set up at all. If your work requires you to travel often and take in business via meetings, you might not need a permanent office but a space to keep your computers, phones, printers etc. For a few days, try operating from your home or take up a storage space for rent. In case you need to conduct meetings, you can call them to a café. The overheads you save will help you invest in an office in the future.

Use communal office spaces. Many cities in the country are now offering start-ups and new businesses the use of ‘communal working spaces’, where a lot of entrepreneurs converge at one spot to carry out their daily work and even conduct meetings with clients. The working spaces offer a fixed spot with a computer and Internet connection for a month or longer, depending on the payment plan you select, apart from free use of the facility’s conference rooms and tea/coffee dispensers. Certain places also offer a courier service for your packages at a separate charge. At a monthly rental of not more than Rs 2,000, you get a complete office set up without any overheads.

Replicate, replicate. It is a good idea to maintain a team of experienced freelancers to do all the tasks that a full time staff can do. You will save the money you would spend on their salaries, plus they will each have their own set-up for completing the tasks. You might only have to pay for transporting certain paperwork and equipment, based on your businesses, to and from the freelancers’ postal address. If your work entails the same set of tasks to be done repeatedly (like editing technical papers), pay five freelancers to do it. The work will be replicated five times over at lower costs to you.

(Picture courtesy knowstartup.com. Image is used for representational purpose only)

5 types of employees you should be hiring

Start up companies often grapple with hiring and retaining the right talent. Knowing certain personality types can ease the process.

by The Editors | editor@themetrognome.in

The best thing about being a boss at your own company is that nobody can fire you. The worst thing is that you are solely accountable for your mistakes. These mistakes can range from not being a proactive leader to not securing adequate funding, but by far the biggest mistake than can affect you on a daily basis will be hiring the wrong people to work for you.

1. The punctual one. Some people are extremely punctual, arriving in time for the start of a new working day with a few minutes to spare. They are meticulous about managing their own schedules, because they respect time. “Businesses must encourage others to emulate their example,” says Viral Shah, who runs an online trading firm with 10 employees. “Encourage punctual people to take up managerial roles, because they are more organised and their finicky attitude about time ensures that projects are completed within schedule.” If your team has a person who always arrives on time and is profusely apologetic about being late, groom that person to handle project deadlines, to begin with.

2. The first in, last one out. These people can be a pain to others, because they are always in office –they are the first to arrive and the last to leave. This behaviour is a clear indication of commitment. Such personality types often stay committed as a matter of habit, even when they are not enjoying their work. These persons can be roped in to handle last-minute jobs or assist teams which are working against deadlines. Since they normally show up to work even before others have arrived, they can be entrusted with drawing up daily schedules, following up on the previous day’s backlog and setting appointments for the day. Companies might consider making these persons assistants to the bosses.

3. The team player. This person can always be relied on to pitch in with assistance, moral support or just a sense of humour when the going gets tough. “Such people are born leaders and their commitment to the company is very high,” explains Sara Chhajed, an HR professional. “They will even help out in projects that are not theirs, simply to get the work done faster with lesser hassle. They will actually ask for more work if they see that the rest of the team is struggling, and they do not try to hog the credit.” People displaying these qualities can be focussed, easy going, friendly and compassionate. “Bosses should groom them in a team-building capacity, because they often display team spirit,” Sara says. “They are valuable employees, even if they are not the most talented.”

4. The experienced mentor. Every team needs a senior to guide the office with his or her experience. Such a person is a key asset in a young, inexperienced team that may flounder without an experienced mentor. “I have helped set up at least 20 start-ups in the last year alone, and I always advise the management to hire one senior person as a manager,” says Ankit Mishra, who works exclusively with start-ups. “These persons are capable of taking a neutral look at a project and suggest corrective ways that can save the company a lot of valuable time and effort. However, they should be encouraged to engage with the team on a regular basis, instead of waiting to be asked for help,” Ankit adds.

5. The genial, all-skills-included one. This is the best type of person to hire, after the team player, because this person keeps the office environment light and friendly. This sort of personality is needed in a high-stress, high-work start-up environment, because they can plug in the gaps in the system whenever required; thus companies save resources which they would have spent on outsourcing external agencies to get the same work done. “One of my employees started working with us as an office boy, but I soon realised that he had a fair knowledge of computers,” recalls Viral. “Later, he learnt how to read balance sheets, and make and receive payments. Now he is my personal assistant.”

This type of person should also be enlisted to plan office outings and team bonding sessions, where their enthusiasm comes in handy.

(Pictures courtesy www.gomindmerge.com, theloyaltygroup.com. Images are used for representational purpose only)