Business Coaching, is a
direct one-on-one interaction between two individuals in a regular and
structured conversation. This is done to address and handle business challenges
faced by one individual by drawing upon the experience of another individual. Coaching
is done in an environment of complete trust where all matters ranging from work
to personal challenges may be discussed once the comfort level starts to
increase.
Every
Startup Entrepreneur needs a coach.
A
majority of Startups all over the world are founded by young men and women in
their twenties and possibly in their early thirties. While their ideas are
excellent and their energy levels are great, most startups start to falter
within a couple of years because of poor / inadequate systems, over aggressive
scaling up, weak financial planning, insufficient focus on people management,
weak governance or poor execution of their revolutionary ideas.
At
the same time, thousands of managers are retiring from the corporate world at
the “young” age of between 60 – 65 years after spending almost four decades in
specialized or general management positions in major and smaller corporations. At
this stage of their lives they clearly have at least another decade of work
inside them.
Retirement
of senior managers is happening in all parts of the world and is a consequence
of the superannuation policies of the employer rather than the competence or
the age of the individual. These people know what it is like to run businesses
and tackle the challenges of building businesses. They have functional
expertise in finance and accounts, budgeting, packaging, branding, sales, human
resources, governance, legal matters and general management.
With
a little bit of training, most of them can become excellent coaches.
Therefore,
logically, there is a huge opportunity to bring together the vision of the
Startup Entrepreneur and the experience of the older manager in an unobtrusive
and non-threatening manner for the entrepreneur. Older individuals can connect
with the entrepreneur as coaches (or in some cases as employees), depending on
the need of the individuals.
Not
every superannuated individual has the energy or the risk taking capability to
start a business enterprise on their own. At the same time, the older managers,
in the twilight of their careers, are not yet ready to hang up their gloves. Most
of these older individuals would be reasonably financially secure. They are
looking to give back their life’s learnings while staying occupied, and earning
some money (which could be in the form an equity option as well). Further, they
will be much more stable for a startup. They will not resign and walk away in a
hurry because they did not like the way they may have been spoken to or because
another exciting opportunity has come up.
For
the entrepreneur, it is a very lonely job and there are very few people he can
trust. Most young entrepreneurs need a sounding board in a non-threatening
manner with someone who has no agenda with the individual or the business. Given
the significant work pressures Startup Entrepreneurs face, they need someone to
discuss their issues and allow them to vent.
They
will not say what the startup entrepreneur wants to hear and after a long work
innings, hopefully, they would have learned how to manage their personal egos
in front of the young team that they wish to be a part of.
A
coach should see their success in the success of their younger colleague and
not attempt to score brownie points directly with the teams.
In
addition to watching the back of the startup entrepreneur and guiding them when
the ship invariably hits troubled waters, a coach will also bring in strong
subject matter knowledge from the domains they would have spent decades working
in.
Most
startups face issues in the following areas and an experienced professional can
provide invaluable inputs for the startup team.
Some
of these areas outlined below.
1. People
Strategies – Most entrepreneurs struggle with
their people strategies. The people who started off with the entrepreneur may
not be the best to take the business to the second and third level. Even the
entrepreneur needs to stay ahead of the curve to manage a fast growing
business. A coach can evaluate the people and help in identifying new resources
at each stage of the growth.
2. Business
Planning and Review – Startups are
famous for making plans and then not meeting them! A good coach can work
closely with the entrepreneur and the top management team to develop an
achievable business plan and more importantly, hold quarterly reviews. This
will ensure that the entrepreneur and leadership team is held accountable for
what they commit in each quarter.
3. Good
Governance Practices – All Startups
should normally be started with the objective of building a strong and stable
business which can mature into an institution. A coach will ensure that the
entrepreneur will build good governance and transparent practices in the
organisation.
Even
something as mundane as ensuring board meetings are held on time and minutes
are properly recorded is an area where startups have been known to slip up.
4. Fund
Raising – While most startups are looking for
funding from Angel Investors and Private Equity Investors, there is a large opportunity
for raising funds from banks though debt and working capital financing. A coach
with a strong finance senior background will bring in much needed contacts and
experience to reach out to the banking system.
5. External
Relations – Most businesses, irrespective of the
sector they are addressing, need a strong connect with the external world.
These connections could be with bureaucrats, politicians, environmental
activists or the local councilor. An experienced coach will have the patience
to handle these external challenges. This could also include developing a
strong public relations contact programme with the print and visual media.
6. Legal
Processes – In addition to hiring legal help
during formation and fund raising, most businesses are faced with a lot of
legal challenges. Once again, an older and more experienced coach will bring
wisdom in handling such matters. Which cases to pursue and which ones to drop
is a critical decision to save valuable managerial time, resources and of
course, money.
7. Playbook
/ Standard Operating Procedures – In the
hurry to get started, very often standard operating procedures get lost in the
detail. These need to put in place very early in the game so that mistakes are
not repeated. An experienced manager tasked with this will be able to put in
place such a manual / playbook that would serve the company well into the long
term.
Having
mentored several startup entrepreneurs, I have seen the value a coach who has
“been there done that” can provide to a startup entrepreneur.
I
have often said that the combination of young energetic legs with grey hair
would be a win-win combination for all Startups. To draw a parallel from hockey
or football, the entrepreneur is the centre forward rushing to shoot goals and
win while the older manager is the goal keeper who will protect the companies
turf and ensure that self-goals are not scored!
What
is important for both the parties is to mutually select the right set of
individuals. What is important is to develop mutual trust and confidence
between the two individuals to build a win-win combination for the success of
the business.
In
other words, every Startup Entrepreneur needs a coach.
Experience
Never Gets Old!
*******************
The author is the founder Chairman of
Guardian Pharmacies. A keen political observer, he is an Angel Investor and
Executive Coach. He is the author of 5 best-selling books, Reboot. Reinvent.
Rewire: Managing Retirement in the 21st Century; The Corner Office; An Eye for
an Eye; The Buck Stops Here - Learnings of a #Startup Entrepreneur and The Buck
Stops Here – My Journey from a Manager to an Entrepreneur.
Twitter: @gargashutosh
Instagram: ashutoshgarg56
Blog: ashutoshgargin.wordpress.com |
ashutoshgarg56.blogspot.com
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