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The Secret of Successful New Commodity Trading Companies

Starting a new company can be both exciting and challenging. Runebar Energy, a new commodity trading company that was recently incorporated, is experiencing the realities of starting a company from scratch. Despite the scaling issues and operational challenges they are facing, Runebar Energy is determined to hire the right people and put a proper risk management system in place.

In a recent presentation, the CEO of Runebar Energy emphasized the importance of company values in guiding decision-making and shaping the company’s identity. He stressed that company values should not be fancy words on an agenda but rather the guiding compass that shapes decision-making. The CEO also shared the core values of Runebar Energy, including speed, doing what they say, being aggressive, and foreseeing potential issues.

Company Overview

Rombard Energy Background

Rombard Energy is a new commodity trading company that specializes in biomass trading. The company was incorporated a month ago and has been growing at an unprecedented speed, which has led to some operational challenges. The company urgently needs to hire more people and put a proper risk management system in place. The company is committed to adding value to the marketplace by de-risking transactions for buyers and sellers.

Biomass Trading Explained

As a biomass trading company, Rombard Energy buys and sells physical positions of wood pallets, sunflower husks, or any other form of biomass. The core of the company’s activity is to de-risk transactions for buyers and sellers. This is achieved by delivering the right product at the right place, at the right time, and with the right payment terms. The company offers a service business, and the service is delivering the product at the right quality and payment terms to both the client and supplier.

The company’s values are the guiding compass that shapes the company’s decision-making and becomes the company’s identity. The values are Speed is King, We Do What We Say, We Bark and We Bite, and We Foresee. These values are meant to help employees make the right decisions when there is no frame of reference. The company is committed to being aggressive and standing its ground when necessary to ensure that it adds value to the marketplace.

Challenges Faced

Scaling Issues

Runebar Energy is a new commodity trading company that recently incorporated a month ago. The company is scaling at a speed that the speaker has never seen before, which is a good sign. However, this growth has led to several scaling issues such as everything breaking, trucks loading left and right, and no clarity on where they go. The company is urgently hiring people to put a proper risk management system in place to address these issues. The chaos is evident, as a truck unloaded in the middle of the road at 2 am for no apparent reason.

Risk Management Necessity

With the company growing at an unprecedented rate, there is an urgent need to put a proper risk management system in place. The company is hiring new and inexperienced employees but has no processes, playbook, or SOP to guide them. The speaker emphasizes the importance of company values as a guiding compass that shapes the company’s decision making and identity. The company values are not fancy words on a menu but rather the guiding principles that employees can refer to when they have questions. The values help employees come up with their own answers, which align with the company’s decision-making process. The company’s core activity is de-risking the transaction for buyers and sellers, adding value to the marketplace. The speaker wants employees to understand that the company’s service is delivering the product at the right place, at the right time, with the right quality and payment terms to clients and suppliers.

In summary, Runebar Energy faces several challenges, including scaling issues and the need for a proper risk management system. The company values serve as a guiding compass for employees to make decisions that align with the company’s decision-making process. The company’s core activity is de-risking the transaction for buyers and sellers, adding value to the marketplace.

Operational Realities

Handling Logistics

When starting a new company, one of the biggest challenges is handling logistics. Runebar Energy, a new commodity trading company, faced this challenge head-on when they urgently needed to hire people to put a proper risk management system in place. With no playbook, processes, or standard operating procedures in place, it was difficult to ensure that the first group of employees worked as intended. To address this issue, Runebar Energy’s CEO emphasized the importance of company values. Company values are not just fancy words on an internal menu, but rather a guiding compass that shapes decision-making and becomes the company’s identity. When employees have questions, they can refer to these values to come up with their own answers.

Market Conditions Impact

Market conditions can have a significant impact on a company’s success. In a bull market, companies can afford to be a bit loose operationally, but in a bear market, every detail can be used against them. Runebar Energy’s CEO stressed the importance of de-risking transactions for buyers and sellers to add value to the marketplace. This is the core of their activity, and it’s crucial for employees to understand this from the beginning. The company’s service is delivering the product at the right place, time, quality, and payment term to clients and suppliers. The CEO also emphasized the importance of speed, doing what they say, being aggressive, and standing their ground to ensure the company’s success. By having a clear understanding of market conditions and the company’s values, employees can make informed decisions that align with the company’s goals.

Importance of Company Values

Guiding Principles

In a new and rapidly growing company, there may not be a clear playbook or established processes for employees to follow. This is where company values come into play. Company values serve as a guiding compass that shapes decision-making and becomes the company’s identity. When an employee has a question or is unsure of how to proceed, they can refer to the company values to come up with their own answer.

At Runebar Energy, a new commodity trading company, five values have been established to help guide employees. The first value is “Speed is King” because it sets the company apart from competitors and ensures that everything is done quickly. The second value is “We do what we say” to ensure that promises are kept and employees follow through on commitments. The third value is “Bark and Bite” which encourages employees to be aggressive and stand their ground when needed. The fourth value is “We add value” which reminds employees that the core of their business is to de-risk transactions for buyers and sellers. The final value is “We foresee” which encourages employees to be proactive and anticipate potential issues before they arise.

Decision-Making Framework

Company values serve as a decision-making framework for employees. They provide a set of guidelines that help employees make decisions that align with the company’s goals and objectives. By referring to the company values, employees can ensure that their decisions are consistent with the company’s identity and direction.

At Runebar Energy, the core of their business is to de-risk transactions for buyers and sellers. This means that every decision made by employees should be focused on reducing risk and adding value to the transaction. By following the company values, employees can ensure that they are making decisions that are consistent with the company’s goals and objectives.

In conclusion, company values are an essential part of any company’s identity and decision-making framework. They provide a set of guidelines that help employees make decisions that align with the company’s goals and objectives. At Runebar Energy, five values have been established to help guide employees and ensure that every decision made is focused on de-risking transactions and adding value to the marketplace.

Presentation Highlights

Welcome and Purpose

The speaker begins by welcoming the newly onboarded employees and explaining the purpose of the presentation. He emphasizes the importance of company values in guiding decision-making and shaping the company’s identity. He stresses that company values should not be fancy words on an agenda but rather a guiding compass to help employees make the right decisions.

Service Definition

The speaker then explains what the company does, which is biomass trading. He clarifies that they only deal with physical positions of biomass and do not play on the future market. The core of their activity is to de-risk the transaction for their buyers and sellers, which is how they add value to the marketplace. He emphasizes that they are a service business that delivers the product at the right place, time, quality, and payment terms to their clients and suppliers.

Vision and Values

The speaker reveals the company’s five values that help employees make the right decisions when there is no frame of reference. The first value is “Speed is King,” which makes them different from their competitors. They prioritize speed in everything they do. The second value is “We do what we say,” which means that they follow through on their commitments. The third value is “We bark and we bite,” which emphasizes the importance of being aggressive and standing their ground. The fourth value is “We de-risk,” which is the core of their activity. The fifth value is “We foresee,” which means that they anticipate and plan for the future. These values serve as a guiding compass for employees to make the right decisions.

Core Company Values

Speed Is King

Runebar Energy, a new commodity trading company, places great importance on speed. The company believes that speed is what sets them apart from their competitors and incumbent players. They want everything to be fast and efficient, and this value is reflected in their operations. Runebar Energy does not impose strict rules on its employees, such as answering all emails within 24 hours. Instead, they encourage their employees to be quick and responsive in their work.

We Do What We Say

Runebar Energy places a strong emphasis on keeping their promises. They believe that it is crucial for their employees to follow through on their commitments, and they expect the same from their clients and suppliers. The company understands that it can be difficult to implement this value, especially when there are confrontations or struggles. However, Runebar Energy believes that by doing what they say, they can build a flourishing company.

We Bark and We Bite

Commodity trading can be a confrontational business, and Runebar Energy is not afraid to stand their ground. They believe in being aggressive and fighting for what they believe in. When they make a deal or agreement, they follow up and ensure that it is executed as promised. This value helps Runebar Energy protect themselves from potential scams and frauds in the industry.

We Foresee

Runebar Energy places great importance on foresight. They believe that it is essential for their employees to have a clear vision of the company’s goals and objectives. This value allows their employees to make informed decisions that align with the company’s mission. Runebar Energy understands that without a clear vision, their employees may struggle to make the right decisions, which can negatively impact the company’s growth and success.

In summary, Runebar Energy’s core values are speed, keeping promises, being aggressive, and having foresight. These values help guide the company’s decision-making and ensure that they stay on track towards achieving their goals.

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