Starting your own business is both exciting and challenging. In the beginning, you often do... and know... everything! As you grow, you will likely need to hire staff to handle some of the work, which also adds to your workload as you train, guide, and supervise them. Unfortunately, what we often see as a business grows is these employees start running the business while owners continue working in it. While you need your staff for day-to-day operations, it's the owner’s responsibility to actually run the business.
How much time do you spend ON your business versus IN your business? As your business grows, more of your time should be spent running the business, not working in it. This transition can be extremely difficult for most business owners, but it is essential for successful growth.
Signs You May Need to Spend More Time Running Your Business
Employees focus on tasks they think are important, not necessarily what is important or requested.
External sources complain about communication issues or not getting what they need from your staff.
Sales drop due to inadequate customer care.
Credit is cut off because bills are not being paid.
Indicators of Financial Strain
Financial reports are outdated or delayed.
Accounts Payable (A/P) is high.
Accounts Receivable (A/R) is high.
Billing is not being done in a timely manner.
Cash flow is poor, leading to regular borrowing, despite strong sales.
Net income is lower than expected.
Steps for Change
Allocate time to evaluate your current position and future goals. What changes are needed in your role?
Assess your staffing needs. Start with defining positions, then evaluate if your current staff fits those roles.
Consider joining a Mastermind or coaching group, like Vistage International.
Implement EOS with professional guidance.
Hire the right people for internal and external needs. Consider if it's time to add a controller, HR professional, IT expert, or admin to help with email, scheduling, and planning. This will free up your time to focus on your business.
We've seen several businesses learn the hard way that without making these changes, their explosive growth isn't sustainable, putting both their business and personal assets at risk. Don’t let your business reach this point. Need help? Reach out today!