There are many reasons why a company can go out of business. But, what if we tell you it had nothing to do with money that led to Marka VIP’s rumored demise? In their case, it was all about management. How though? Read on to find out.
Everyone dreams of being their own boss and running their own company, but does everyone have what it takes?
Take Marka VIP for example. A startup that started off with a lot of potential, but unfortunately went out of business. It takes more than one aspect for a company to fail, but for now, let’s focus on two important aspects; management and their responsibilities. One of the main reasons that Marka VIP was rumored to have gone out of business was due to the fact that top management misused funding, took numerous bonuses, and the hiring and the firing rate were incredibly high.
Another reason was that the CEO was rumored to not trust others, would not delegate and instead decide to run things alone. This happened despite head hunting and hiring top employees from other high profiled companies. From the experience of Marka VIP, it appeared that a lot of micromanaging was taking place from the CEO’s seat. A trap a lot of founders fall into, which is the fear of delegating because “Who can know my company better than me?”. For a lot of people the CEO micromanaging the company and not delegating sounds like a big no-no, but unfortunately this practice isn’t uncommon in this region. This type of leadership style, or rather the lack of proper leadership is seen throughout many companies, big and small.
Whether it is because managers tend to presume that no one can do a better job, or if it is the complete opposite and they are worried someone would do the job a lot better and outshine them, regardless of the reason, this is a practice that needs overcoming.
Startups are on the rise and so is the backing and support from governmental agencies, angel investors, accelerators and the communities. It is a good time to take those ideas of yours and create your own business. Just remember that your leadership style is a huge factor that has an impact on the outcome of your business.
“The best executive is the one who has sense enough to pick good men to do what he wants to be done, and self-restraint enough to keep from meddling with them while they do it.” –Theodore Roosevelt