When an entrepreneur starts a Small or Medium Business, he follows the 3C Model for establishing the business and to generate sufficient cash flow - Capability, Capital and Connections. At this stage he is essentially inward looking, putting more stress on his strengths. He should answer the following questions - Do I have the Capability to succeed in this business?, Do I have sufficient Capital to sustain it till it breaks even? and Do I have the right Connections that I can leverage?
As the Business grows he needs to focus on 4 more C's - Competition, Customers, Communication and Commitment. The first is obvious. He should now be having a set of Customers and should focus on thrilling them, apart from attracting new customers. Communication becomes more important at this stage, both external and internal. The latter helps to build a strong team while the former aids in developing the Brand Equity. One thing noticed amongst the Entrepreneurs is their fall in Commitment as the business starts dipping post the initial spurt. The enthusiasm of starting a new venture falls off and one has to plod on. It is a time for consolidation. Most entrepreneurs, by nature, enjoy the creative freedom the new venture gives them but are hopeless when it comes to handling the nitty gritty routine of consolidating the business. This is the time when they have to tighten their belt, grit their teeth and hang on - and this requires strong Commitment.
At all stages, the entrepreneur requires an additional 4 C's - Cash Flow, Clarity of Thought , Core Competency and Competitive Edge. Cash is the bloodline of any organization. It is what fuels it. Most business schools downplay the importance of cashflow, while talking up abstract conceptual issues. No Cashflow and business will start stuttering. The 9th C stresses the importance of Clarity of Thought - one should be certain of one's Convictions, as to what the business stands for and how to run the business. Vagueness and hazy vision will lead to confusion amongst stakeholders. Right or wrong, follow your Convictions. And finally, over a period of time, develop not one, but multiple Core Competencies in one's business. This helps the entrepreneur to maintain a Competitive Edge in the market place, without which any business is doomed to fail.
