Business is another child: 6 rules of entrepreneurship from Glib Zagoriy

Business is another child: 6 rules of entrepreneurship from Glib Zagoriy

About courage, money, family business and real partnership.

The difference between family business and private business, started from the scratch, “from the first generation”, is huge. It is not only about general philosophy of doing business, but division of powers and responsibilities within the family. Another important thing is whether this particular person has entrepreneurial talent, which, as Glib Zagoriy, the co-owner of Pharmaceutical Firm “Darnitsa”, believes, is taken over genetically. Why is it so? What is it like to join the family business? And how can one measure his or her success? Glib Zagoriy reveals to Mind.

1. Entrepreneurship is in our genes.

Once you’ve decided to become an entrepreneur, you set your foot on a risky path. Everything you have will be exposed to risk; first of all yourself, not to mention your money.

Being dependent always somewhat constraining. If you can imagine yourself being an independent individual, — I say ‘imagine’ because each person is always dependent — this means you have courage to do business.

Entrepreneurial spirit is a gene of “disturbance”. It can not be learned.

If you do not have it, you’d better not start. If you have don’t sense that you have it, it means you have not grown up yet and it is not the right time to start your business. In such case you shall be just an entrepreneur, and not a businessman of high grade.

2. Business is not measured by money.

The owner is first of all a visionist. The visionist is a dreamer, i.e. a person who shall not measure the depth of its dream with money.

Does money rule the world? Yes, of course. Today we live in the era of finance. Everything is measured with money. However I would not classify this into good or evil as fairy-tails do. Actually everything depends on who holds the money.

However the business is no more measured with money. It is measured with your ability to realize and to understand when entering the business, how you shall leave it, and here I mean not the material things you will take with you while leaving, but how – which values you will acquire by the time.

Surely, there are certain standards to secure your business, to not fall deep, and to be able to take a hit, to create that ‘soft pad’ and endurance that will help to preserve the status you have reached for longest possible when hard times come.

However the idea of business itself is rather about personal development and satisfaction of personal ambitions, rather than trying to reach certain performance targets. Yet, of course, nobody cancelled the purpose of entrepreneurship which is gaining profit.

3. Do not be afraid of risks.

Do not be afraid to fall, because if you start grading ideas into “highly risky” and “less risky”, you will never reach great success. Any finance expert will agree that “highly risky” ideas bring larger income, and “less risky” idea – small income.

Business environment is full of risks. And one has to be ready, at least from psychological perspective, that development and growth will not be ceaseless, good income might occasionally be replaced with losses. Renowned Henry Ford, whose opinion we can trust, once said: “Do not take business losses as a failure. Failure is simply the opportunity to begin again, this time more intelligently”. Notably, he perceived intelligence as a category which can be measured and added to the formula.

You should not focus on preserving a capital. If you have created a system in which the business can endure, then don’t be afraid to experiment, invest you money, be real entrepreneur. And some project or projects that are part of development will bring you benefits.

4. You must not make boast of your charity activities.

The first rule of philanthropy: you must carry out your charity and philanthropy activities with a pure heart.

Second: you should not take it as an investment. Philanthropy does not have a price; this is just a standard of opportunities that you can give, i.e. helping somebody.

Third rule of philanthropy: try to speak less of what you do. A person who tells everyone of his/her charity activities: first, is immodest, and second, tries to sell himself (herself) an idea that he/she acts in a right way.

5. In family business, the enterprise (the company) is another child.

Responsibility in family business is always greater than in any other business. When you take responsibility not only for your own business, but for something that was established by your father, it is far more serious than responsibility for your own business.

I have been working in a classical family business model, where apart from me and my younger sister our family had the third child named “the company”. It has always been a member of our family to my father. He treated it respectively.

The most important was to make me understand this. This could be done in different ways, gently or severely. Severely was my case. I was simply told: “You don’t have a choice. You will fulfill your potential here. How you will do it – it is up to you to decide.”

And I could not invent anything more valuable than just going through the career ladder starting as regular manager of the department. Notably, the motivation was very simple – getting to the top of the ladder.

6. Partnership is pertinent not only in terms of income.

Speaking about partnership, there must be certain equality not in terms of the number of shares or participatory interest in a share capital expressed as a percentage. Everybody must have equal opportunities.

And then, depending on the number of shares held by each partner, level of responsibility is set for each of them. It is not about “larger” or “lesser” right to vote while discussing or approving any ideas. Also, this is something I try to explain to my son.

Maintaining a partnership is challenging, as it must survive through thick or thin. In the real world, we usually have partners only when you feel good. In business it sounds differently, like “the partners only where there is income”. There are not so many partnerships where partners remain partners even if they face losses. This is really of great value.

Glib Zagoriy, co-owner of Pharmaceutical Firm “Darnitsa”