By Dr. Evans Baiya
One of the challenges for growing a company is knowing exactly where to focus your investment, time and resources. When you introduce a new value (innovation) to the market, there are many processes you must have in place such as sales, marketing, delivery, and of course financial processes. These all require investment in the form of money, people, effort and research.
One of the biggest mistakes that companies make is to try to invest in all of these processes right away. Remember, to invest in an operational system requires a lot of resources. It takes up the leader’s time. This is time you should be spending on delivering increased value to customers. It is impossible for an entrepreneur to do everything early on, so the tendency is to have a bulky budget and to hire people to help you do all these things. This leads to a variety of issues: getting into early debt, promising features to potential customers that you cannot deliver, even getting paid but losing money. This can be a fundamental problem.