WHY BUSINESS OWNERS NEED EXPERIENCE AS EMPLOYEES

As I prepared to exit my last job, someone asked me what I learned. I said only two things:

1. How things should be done.

2. How things should NOT be done.

I have spent some time ruminating on this topic as I think about our relationship with Nigeria, best described as “situationship” and how many people are thrown into the world of business against their own will and also grossly ill prepared. As it were, in many cases, the other alternative would have been hunger and depression.

Another critical issue is that Business owners, aka “one-man business” don’t have competitive remuneration packages, and so it seems like the most lucrative option is to “Be Your Own Boss”, which many later get to find as a hoax. While I was in paid employment, I had maybe 3 – 5 bosses per time. Today, I have hundreds and I answer to minimum of 30 to 40 every week.

Now, this phenomenon is not so old as to having enough empirical data to determine how it will end, good or bad. But as a promoter of sustainable businesses, I’m worried and my prediction is that 90% of businesses that start because of situationship will not last for up to 10 years and most of those who do will not flourish.

I also don’t like the sound and feel of that but here’s why I make those predictions:

1. Businesses that start with the mindset of survival hardly outgrow it. Mindset is the key word. It’s easier to change a sitting president than to change a person’s mindset. It takes a lot of exposure to right information to do that.

2. Businesses led by persons without prior experience of being led by others will struggle with processes and structure. I didn’t say it is impossible, but it will be more difficult.

3. Human capital management is a key factor to whether your business will succeed or not. How you run your family or how your parents raised you is not how you learn to manage human beings. It is best learned in a similar environment- workplace. Most people who start businesses because of “situationship” with Nigeria, never get to learn this art easily. That’s why you hear people “regret working for a one-man business” because even the business owner didn’t learn properly. Now, people who can’t manage human beings can’t build a sustainable business. For me, next to my customers in priority, are my team members (present and future); I design, in my mind, the kind of people I want in my team and how I (will) treat them. That’s why companies have highly paid people in a section called Human Resources. For example, If your child will use diapers that won’t give rashes, it indirectly depends on HR department. Hiring, compensation plan, motivation, training and discipline all lead to quality products and services. A bad or badly trained or paid employee will not know when the machines are deviating in quality. Everything rises and falls on human beings.

Most people without prior quality work experience, will have to learn this the hard way.

With all these in mind, I always admonish people who feel “called” to entrepreneurship to try to have some work experience. If what you want to build is a thriving, long lasting business, learn the ropes, especially from a dispassionate environment.

I experienced the first culture shock when I joined the last multinational I worked for. I come from a family where everyone dots over me, only to join an organization where it is “All man for himself, God for us all!” I am grateful for that experience today.

 

If you can’t find work in a big enterprise, find a small one with quality leadership, structure and processes with remuneration as the last consideration. It is not a waste of time or life…

In fact,