The way we manage our businesses has evolved due in part to all the technology bestowed upon us, shifting societal norms, and our varying needs and wants as consumers. Entrepreneurs begin endeavors sans business plans. Companies rise to fame seemingly overnight. But as fast as companies can build is exactly how fast they can plummet. After watching a few interviews (courtesy of Entrepreneur.com), we took notes from new age business owners, Angelo Sotira and David Karp. Sotira and Karp argue that we must maintain a constant effort to actively forecast growth and decline periods in order to keep our businesses on track.
Angelo Sotira launched deviantART, an online community that began in the year 2000 as a platform for artists to exhibit and discuss works. The company has seen consistent success since their startup days. Sotira advises that innovation itself is not the only key to profitability. We must innovate based on the needs and wants of our customers and our community. If we innovate around those core factors, our products have a better chance of being successful and reaching the hands of consumers.
David Karp is the founder and CEO of Tumblr, a social media website and microblogging platform. Karp was named Best Young Tech Entrepreneur by Businessweek in 2009, but faced his fair share of pitfalls whilst maintaining his business. Karp advises that business owners maintain composure. Every business will undoubtedly see a moment of crisis. It is important to be a strong leader and make smart decisions to move forward.
Karp advises that leaders understand their limits of experience and bring in professionals when necessary. Karp learned a few lessons the hard way. He learned that when your business is scaling, your payroll must grow as well. You must have an infrastructure to uphold your business and maintain its responsibilities. Delegate tasks to an employee who can spend 120% of their time on the tasks as opposed to spending 5% of your time trying to handle too many tasks on your own, Karp suggests.
At the root of it all, these two business owners advise us to work effectively and intelligently, but we must also safeguard ourselves from being spread to thinly. Our businesses will see smooth growth if we prepare for growth proactively.