In my opinion, there are two ways of entrepreneurship
- Grow it!
- Keep it small!
I wanted to share my two cents about these two ways of entrepreneurship and how to proceed about that. I have been in business for 8 years now and have learned some small bits and pieces. But, people has been in business for hundreds of years. So, instead of sharing my ways, I am going to recommend some good reading!
Some people think that, reading is overrated. Practical life is different than theory. Books doesn’t apply, smartness is the key. I say you, it’s wrong! Super wrong. Yes, Bill Gates or Steve Jobs were university dropouts. But, that was the age of university dropout. Now is not the age of that. We don’t have time to re-invent the wheel. We have to know what’s happening, what happened and learn from others mistake, because others are learning and if we don’t learn, we will fall behind.
On growth business, the more you grow, the more money you earn. Think of a business where you give software development service to many companies, like us, Brain Station-23. In our company, we make software for other companies. The more software we make, the more money we can earn. To make more software, we need to get more people – and it’s growth.
Currently we are a 70+ people company, serving all over the world, US, UK, Canada, Denmark etc. It started small, 3 people company, grew bigger and bigger as we served our clients successfully.
But, as it grows, a lot of problems arise. The management gets complicated. A lot of rules needs to be implemented. Profitability is reduced.
So, how to address that? To address that, there has been a lot of books written. In my opinion, “The E-Myth Revisited: Why Most Small Businesses Don’t Work and What to Do About It” by Michael E. Gerber is the best book for it.
If you are in this kind of business, where you produce and sell something, say you are in fishing business, or bakery or anything, that is repeatable, this is the way to go.
There, you would always need to think of your business as the product. So, work on your business instead of in it. Then you can see how to grow and how to repeat your success.
There has been a lot of book in this area. Another one I liked very much is “Good to great” By Jim Collins. I liked this one also very much and a must read I think.
Keep it small!
This is a complete different type of business. All you read in “E-Myth revisited” is reverse here. Start small and stay small is the kind here. It’s not like in order to make millions, you need to have a big company, a small company can make big bucks.
While, E-myth would say “They don’t go to the ocean and find the best Dolphin who can do a lots of act, bring it inside for showcasing! They simply go to the ocean, find a Dolphin and then train to do the act”, in this business you need to hire the smartest of people and keep the team small. You hire the dolphin that has a lot of power!
Example of this type of business is “Basecamp” of 37 Signals. It literally earns millions of dollars EACH MONTH, with only 15 people working for it. Even these 15 people are not sitting together, they are spread not only in US, but also in Europe!!
So, how to make this kind of business work? Well, since 37 signals has done it, they have written books for it. If you are interested for this kind of business, then go and read their book. Two books they have published. One is ReWork and another is Getting Real. The super awesome part is, Getting Real is a free book!! I found both very VERY enjoyable. (But before that I have created my company in the other direction, still it’s a good read)
How great is that!! They have written how they have become successful, in their book. Because, it’s a 600 crore people earth, there’s place for a lot of successful company.
What are these type of business? Well, there’s many. It can be an architectural company, you are designing things and creativity isn’t available in abandon, so you can’t grow it at your will! It can be an idea based company, like Facebook. There’s many like this.
Good luck with your business!