Friday, October 12, 2007

I need your advice on how to match the current short-term goals of profits versus long-term goals of developing the company’s human resource assets

Problem :

My long-term goals are to reach Rs 50 crore revenues by 2010. My salary bill was Rs 70 lakh, when revenue reached Rs 10 crore. It would rise to Rs 1.6 crore at a revenue of Rs 18 crore, if I increase salaries in line with market trends and hire more staff. Should I focus on building the team now or try to meet the short-term objective of profitability?

Advice :

Wow! Yours is a successful startup! Congratulations on passing so many milestones in such a short time. You went from zero to Rs 10 crore in a little over a year and are looking to grow to Rs 18 crore in year 2 — that is spectacular growth. You are diversifying your client base from 90% exports to 66% exports and 33% domestic — that is a wise decision at a time when the US economy is showing signs of flagging! You have managed to keep your senior team together so far — and it was an important thing to do in the start-up stage because it lets you worry about the right things — your product, your markets....Ask the pros: Keeping the flock together

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