Arif Shora’s Thought Dump

Following is a case study prepared by me for a start up run by one of my acquaintances. If you can think of a good solution you can contribute the same either by commenting here or dropping in a mail at arifshora@indiatimes.com.

A hardcore software buff Ashfaq was always passionate about computers and programming. He did his certification from DOEACC in the year 2002. While studying for the certification he along with a fellow programmer started coding for some reputed schools in Kashmir valley. He got good feedback and a first income source. He replicated the same for many schools. Seeing the market stagnated in Kashmir he planned to move out and serve some good software company. He went and did the same for a fresh start up in Gurgaon. He came to know about some details, problems and potential growth that were in store for a start up. He got to work very close to client and management because of the company being very small. Doing a similar sort of thing back in his home was the thing that did not let him sleep and he packed his bags and left the job.

Now back in valley he started striving for the projects that could get him a breakthrough. But he was looking for some international or at least outside-the-valley projects. Finally he got it. Only he and his partner in the dream did the work with the help of a couple of assistants. The name that he had given to his dream company during his studying days stayed: YouthSoft Labs.

Now YouthSoft Labs has some important projects in the pipeline. There is uncertainty of business because it does not have enough management expertise to do resource forecasting and planning. In the wake of certain project YouthSoft Labs has recruited a bunch of people and are training them in a particular technology. These recruits are the people who do not want to leave their homeland for a coding job that they can get there only.

Now here are different aspects of this start up and some of the problems it is facing or might face in the future in the respective departments:

Finance

Currently hosted in one room apartment YouthSoft Labs does have financial constraints. In order to have a decent facility and the legs to pay a salary to each of a dozen workers it does need some serious financial planning. Currently it is paying its trainees( half of them) some half of what it would be paying them once they are on a project. It is completely a company based on partnership. The owners have invested initial amounts and now the company is running with the help of one good project which is getting money flowing into their bottom-line.

They do have certain financial liability which they are catering to very easily. The point is that with the scale of business they are having they have enough liquidity to support their staff. Now the question is:

1.) Should they go for more leverage?

2.) Would it make sense to bring in additional partners to get the money flowing?

Human Resources

Current status as mentioned above is that some trainees are on and some projects are in pipeline. If the owners have aggressive growth plans they can attract many projects and start hiring and launch themselves to the stars.

But the problems are:

1.) The quality work force may not be available instantly. How to go about planning the recruitment? How to fill that void of uncertainty?

2.) The quality work force may not be attracted to work for a very uncertain bunch of people?

3.) Is it possible to prepare a small level incentive scheme to attract talent?

4.) Where to hunt people?

5.) What to give them for a career graph?

Marketing

The company has a zero market presence. There seems to be no other method than networking and building business through contacts until the name is recognized. They do not have much marketability. That is to say they have not anything to flaunt so that others get attracted. Nevertheless considering the possibilities, how about following:

1.) How about attracting the work force by placing ads in your local newspapers?

2.) Participating in seminars both within the valley and other parts of India.

3.) Direct marketing This can be done only at the local level. Going to various institutions and proposing the automation solutions directly to them.

Considering there are enough projects but a lack of planning and vision, we can focus on strategy and more so HR Strategy.

Strategy

There is fear of launching YouthSoft Labs into aggressive growth phase that it may fail to do justice to the projects. But a careful strategizing and planning can make the journey to top much smoother than it seems.

The main aspects that need attention are:

1.) To design a timeline for each hiring phase.

2.) To do forecasting about the needed resources.

3.) Think about the facilities provided to resources.

4.) Give them a career graph to retain them.

 

The answer to above questions is going to provide a perspective to YouthSoft Labs and give them an idea about going ahead with the aggressive growth path.