How and When to Delegate in Your Business

Hawk's Eye On Business

Many small businesses start with one or two people in the business.  At this point the owner wears many hats such as Marketing manager, Sales manager, HR manager, CEO, President, CFO, etc.  Included in these hats is also the janitor, plumber, floor sweeper, etc.  There’s nothing wrong with wearing all these hats when starting out, however, not letting go of these hats is all too often the reason many businesses can not attain that “next level.”  

So how do you determine what roles to outsource first?  At ActionCOACH, the process is to work from the bottom up.  In other words, start with the tasks and hats that are the cheapest to outsource, hire a temp for, etc.  This will allow you, the owner, to concentrate more on the tasks that add higher value to your bottom line.  This strategy will do two things for you.  

1.  Unload your plate of nuisance tasks 

2.  Raise your average hourly value to the business 

As the owner, you are responsible for setting the strategy for the business.  It is easy to outsource in the beginning as many of the tasks are logical to unload from your plate.  As your business grows, hiring managers becomes a major sticking point for the owner.  These sticking points include: 

1.  Reluctance by the owner to “Let-Go” of the role.  I hear: “No one can do as good a job at ______ as I do.”  This may be true, however, is it the most effective use of your time?  Can you train the new manager to do the task to your satisfaction?  General MacArthur once said, “Give a soldier a job to do and be amazed at how he gets it done.”  Give your employees a little slack to discover new and better ways to accomplish tasks that you may not be seeing. 

2.  Paying for the more skilled positions.  Manager positions command a higher wage in the market place.  Owners often can not see how the business can generate the revenue to pay for the new position, however, the business can not attain the revenue without the people to make things happen.  Typical catch-22, right?  This is where a trusted advisor, mentor or coach can help the owner grow in their personal development.  This is also why it is critical the owner choose their advisers well.  A general rule of thumb is when the business support half the compensation of the candidate.  The candidate should produce the other half.    

3.  Lack of an executive recruiting plan.  Owners often times don’t know where to find qualified executive prospects, what personality traits they need to fit into the team, what process to use when candidates are found, etc.  As a result, many owners hire executive recruiting firms to do their work for them.  These firms can fill an important role, however, just like the tasks you are hiring the executive for, you can not abdicate the responsibility of hiring the right person for the job just because you outsourced the process. Additionally, these services can be quite expensive.  This is another area your advisor can help you through. 

Bottom line is that people are your business’ path to growth.  Invest in, train, and grow your employees and your business will grow accordingly. 

For help getting clarity for your Action Steps in your business contact Roger Hawk at rogerhawk@actioncoach.com or reply to this blog. To schedule a 30 minute complimentary call with Roger, visit this site and pick a time, slots are limited:  https://my.timedriver.com/67LS1   

Roger Hawk Business Coach

  

Roger Hawk is the host of “Hawk’s Eye On Business: KBOI News Talk AM670” and has been coaching, teaching & consulting Businesses for over 18 years. He’s been seen in Who’s Who, Virginia Tech’s Scholar Library, Eagle informer and various social media forums. He serves on Eagle’s transportation committee, and has created numerous support tools to help Business Owners become financially successful.    Give your Business a Free Health Check here:  Health Check    

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  1. Download Office, 26 February, 2010

    Great article, thanks for the share. Blog bookmarked :)

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