Founder and Executive Chairman of McDan Group, Dr. Daniel McKorley, has cautioned entrepreneurs against allowing their businesses to remain overly dependent on them as they grow. According to him, many businesses begin to struggle when they transition from a small, founder-led operation into an expanding enterprise without putting proper systems, structures and corporate governance in place. This warning was given at the Telecel Business Runway in Takoradi, where Dr. McKorley identified three broad stages of business development: the infant, organic and corporate stages.
Dr. McKorley explained that at the infant stage, the entrepreneur is often responsible for almost everything, from cleaning and accounting to sales and operations. He said, “The infant stage is where you are the cleaner, you are the accountant, you are the salesperson, you are everything.” He emphasized that as businesses grow, entrepreneurs must be prepared to transition out of this stage and establish stronger systems and structures to ensure sustainability.
The next stage, the organic stage, is where many businesses begin to make money and attract more people, but can become vulnerable because of weak structures and poor management decisions. Dr. McKorley warned entrepreneurs against confusing growing revenue with a properly structured business, stating that “what actually builds a lasting company is not strong personality. It's not McDan. What builds a strong company is systems and structures. Corporate governance structures.”
Dr. McKorley also identified one of the difficulties entrepreneurs face at the organic stage as managing employees who may have been brought into the business because of personal relationships. He emphasized that entrepreneurs must eventually be prepared to make difficult staffing decisions if they want their businesses to grow, stating, “You have to get to a level where you vet yourself... One thing I want to leave you today is hire and fire. If not, you can't grow.”
Dr. McKorley illustrated the danger with his experience in the logistics business, where he once operated about 220 trucks across West Africa. After reviewing the performance of the fleet, he discovered that only about 61 or 62 trucks were generating meaningful returns, while the rest were contributing to debts and liabilities. This experience reinforced the need for entrepreneurs to regularly examine their operations and determine which parts of the business are actually creating value.
Dr. McKorley also urged business owners to invest in human capital despite the risk of losing trained employees to competitors or new ventures. He shared his approach of training employees, stating, “I will train ten people, nine will go, one will stay... I feel it's my duty to train people. I feel it's my duty to give back.” This approach has helped him build a workforce that includes people who have remained with his company for decades.
The Telecel Business Runway was held in Takoradi as part of the company's SME-focused activities, bringing together entrepreneurs and business experts to discuss financing, technology, digital marketing, tax compliance, networking and access to markets. Dr. McKorley's presentation emphasized that entrepreneurship requires resilience, discipline, dedication and integrity, and encouraged young entrepreneurs to remain committed to their values as they build their businesses.
Key points
- Dr. Daniel McKorley warns entrepreneurs against founder-dependent growth.
- McDan Group founder emphasizes the need for stronger systems and corporate governance.
- Dr. McKorley shares his experience and insights on entrepreneurship and business growth.
