Three Ms of business

My friend Iga Zinunula introduced me to the 3Ms of business almost a decade ago. These are three things a business enterprise needs to succeed.

Money
Every business needs money, two types of money to be specific. Businesses need cash which can provide working capital to meet immediate payment needs or long-term capital to pay things such as equipment, building and research. Every business needs the right type of cash, in the right amount and at the right time. The other type of money that a business must eventually make is profit. If your business does not turn out a profit, then you are better off putting your money on treasury bills and getting 10 per cent interest per year.

Men
Every business needs men or talent. Some businesses are able to employ people full time while others use part time staff. When looking for and hiring people, always ensure that you are clear about the result you expect from them and that they know how to achieve those results. Often, people who are looking for work only care about the money they can earn. This often creates frustration: while the entrepreneur is desiring results, the employee is only interested in money.

Management
The third M is Management. This is the most important yet most elusive of the Ms. Management is simply illustrated as the factor that makes the same group of people work so hard for a businessman of Asian origin and yet be so lazy when working for a Ugandan entrepreneur.
One simple but important attribute of management is presence. As the entrepreneur, you must make time for your business or else other people will conclude that you do not take it seriously. I have observed that successful entrepreneurs such as the tourism guy from Mbale and the serial entrepreneur of Somali origin always make time for their enterprises. There is a phrase in farming: “The most important fertilizer is the farmer’s gumboots.”

James Abola is a business and finance consultant. Email: [email protected]