The IT start up, instead of trying to secure big and long term projects (which includes big corporation projects and government tenders) that are hard to come by, can develop a process of bidding in the freelance projects which are easier to obtain. This process set the stage of regular flow of revenue until the company had enough funds to attract high profile tie ups for big projects. The organizational culture that is tolerant of the criticism can enhance innovation exponentially. This is because innovation can be ensured with idea generation from within the organization, which can help it to remove the impediments towards its growth.
The organization should hold weekly brainstorming sessions, where all kinds of ideas are encouraged even if they are critical of my organizational practice. No offence is taken against any employees for being critical to the company. On the contrary, the criticism is analyzed, evaluated and actions are taken to correct the critical areas. The risks involved in running an IT firm are offset to an extent by another translation business that almost ensured with some old clients.
Although the head of the company provides supervision, unlike what Mintzberg has described in his Simple Structure, there is provision of liberty and freedom to the employees to work independently within the given structure. This is the best strategy for a small company that cannot afford a dedicated human resource team to manage my employees. Although the structure is centralized, the organization must be adaptive and flexible. It is also ensured that there is no occurrence of the issues related to the operation and strategy, as new ideas are encouraged and implemented as much as possible along with a culture of non-interference with the employees’ day to day work. The use of intuition is also prevented in directing process and dependence is more on analysis so that the process is not run on uncertainty. The reasons that venture capitalists stress on the management of the companies they invest to, are the business ideas being simple prototype or mere concepts, the promoters have very little experience based on real life management, and the ventures in question cannot boast of much sales and so on. However, for the startup firm to secure funds from the venture capitalists, the management is the key factor for the investors to take into account.