Article from the December 2013/January 2014 issue of Your Business Magazine.
To ensure your business keeps moving forward…
When taking the leap from being self-employed to business ownership, the realisation that you can’t do everything yourself requires a mindset shift. Key “owner” tasks include planning the way forward alongside your team, reviewing your progress and taking corrective action to keep the business on course. To do this well, you can’t be immersed in the daily grind.
Business ownership means focussing on the future. It means setting targets for what the business will look like three to five years down the line. It also means thinking carefully about the skilled people you require alongside you to make this vision happen.
Identify mid-term goals
With your vision in hand, assign mid- and short-term goals for each department in the business, including sales, marketing, finance and admin, and HR. Delegate or outsource these goals, to free up your most expensive resources, and yourself, to focus on doing what only you and they can do to achieve business growth.
An organogram is a key document in your business toolkit. Not only does it detail what happens if you or key team members aren’t around, but it will also help you to be disciplined about hiring. It’ll keep you focused on finding the right people to do the job, rather than bending or creating jobs around people you like. With one eye on your organogram you will always be reminded to “look for talent” and ways to delegate downwards or outwards.
There is no leverage to be found in you packing boxes while no-one fulfils the role of GM. You will definitely be able to find someone to pack for much less than your hourly cost-to-company. In fact not doing so is a false economy!
Set your team up for success
Attach job descriptions and key performance indicators to each position on the organogram. Affordability may be an issue when hiring new staff, so think creatively around what can be passed down and to whom. You may have to start the process by investing time in training up junior staff or by outsourcing to part-time suppliers. A good organogram with clear tasks will help each team member set goals and milestones.
Be consistent
Clear and consistent procedures need to be put in place to allow you to take a step away from day-to-day operations. This means taking the time to put together step-by-step manuals for all – yes all – key processes in your business. Even if this sort of admin is not your thing, the value to your business makes it non-negotiable.
Manuals mean no longer having to waste time repeating “how-to” information day in and day out. In time, it will also help you build a team culture. These manuals outline “the way things are done around here”, which is the glue that will hold your team together, particularly as the business grows. They are also an asset in the business and will add value when you sell.
Find the right tools
At some point, you must identify the “tools” you need to achieve your vision. These may be software, machinery, plant, skills training, or research. They are the tools your business requires to get the job done more efficiently, quickly, and consistently. The tricky part is pinpointing when exactly you will need them.
Taking too much out of the business to service debt or to buy champagne and cigars without considering where and how you will reinvest for leverage, is a recipe for business failure.
Juggle well
At all stages of your business’s lifecycle, juggling the priorities can be tricky. You will be pulled in all directions to resolve the challenges around your growing capacity to deliver, and will still need to find the time to focus on promoting and selling what you make or do.
This juggling act is stressful during the early years when you have little support or infrastructure. And even once you are more established, the time spent running the business means less time selling, which can leave you vulnerable to cash flow peaks and troughs. In a mature business, you have to get it right because your landlord and staff won’t wait around until you have the cash to pay them. Your habits and your focus need to be clear by the time you reach this stage.
Continue generating those leads
To ensure that you generate enough leads that result in sales to achieve your turnover and profit targets, you’ll need a solid marketing plan. Your plan should focus on identifying the right sorts of leads, be “affordable” and deliver an acceptable return on your costs. Test and measure what is currently in place to see if it meets these requirements. Also, keep a close eye on your bottom line – it will tell you soon enough if there is a problem.
By setting up effective systems, processes, and people you will free up your time to focus on the bigger picture of building a sustainable enterprise.
In the next issue, we’ll take a look at the fourth step in building a successful business, which is all about finding the right people, managing their performance, and keeping them.
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