A new business should stabilize its internal operation sometime between its 2nd and 4th year. The owner has been the “jack of all trades” during this initial growth process. The products and/or services have been defined and there is hope that perhaps the owner can now relax.
This is one of the most critical stages in the growth process for a new business. The absolute wrong action is one of relaxation. Many small businesses start to fail at this stage; for the most part the business owner has been working in the business; and now, with some systems in place there may be a feeling that the business can roll “up-hill” on its own.
I recommend a replacement process at this stage in the life of a business.
- Start by writing down all the “different jobs” that you do as an owner. Don’t leave any job off the list. For example, the list may include accounting, internal operations, marketing, visioning, new product/service development, etc.
- Make two copies of the list and prioritize them as follows: (give some thought to the prioritization process, it has to come from “the heart”.
- Take one list and prioritize it by its contribution to the success of the company to this
- Take the second list and prioritize it by the type of work you like to do most.
- Review the list with your coach or support group. By combining the results of both lists, you will now have one list to work with.
- The goal now is to start at the bottom of the list and assign the responsibility to someone else. If there is no staff available to take on the responsibility then it’s time to hire new support. This initial assignment goal is to remove 25 to 50 percent of the jobs from the business owner.
The result is a concentration of effort by the owner on those things that produce the greatest results and that he is more comfortable in performing. It also allows the owner to spend more time working “on “ the business. The second benefit is the expanding of the company staff which will allow the business to grow with a better foundation
If your business isn’t moving fast enough consider the turtle…. It can’t move at all if it doesn’t stick its neck out.
Nick J. Petra CFP contact us at www.strategicduck.com
Make 2013 your most Successful Year ever.