When You Are the Business
Your dream was to start a new venture, and through all of the hard work, you’ve been personally connected to nearly all aspects of the business. Whether it’s your first sales call or your last customer service phone call in the middle of the night, you’ve grown your business by getting directly involved. Being so connected is something to be proud of; however, it may be time to consider taking a step back.
A business can become limited in its growth potential, and it can become exposed if it depends too much on its founding member(s). If you are the decision maker, the “fix-it” person, and the bottleneck, you’re not building a business. You are building a job for yourself.
Why Redundancy is Important
In business, redundancy is not waste; it is a source of strength. If your absence creates problems such as confusion, delayed responses, and/or reduced income, that is an indicator of a problem. In a successful business, systems (not personalities) are used to operate the business. This includes having a business model that has a clear operational structure and authority that provides clear lines of responsibility. A good business model will allow your employees to make decisions and take action based on the systems that you have established, regardless of whether you are on the premises or out on vacation.
Simply hiring quality staff is insufficient. You must provide your staff with the ability to work independently of you. This requires establishing a foundation of documentation that provides clear direction and accountability within the business. This way, you establish the potential for scalability in your business.
Documentation – Your Silent Partner
All of the decisions you make, all of the solutions you develop to address problems you face, and all of the repetitive tasks that you perform are essentially blueprints. Document each of these processes. As your team members reference a living document that outlines the operational procedures of the business, they will not be making educated guesses or trying to figure things out as they go along. Instead, they will be performing specific actions and making decisions based on proven methods.
From Owner to Architect
As businesses mature, there is often a subtle yet significant shift. The founder becomes less of the engine driving the business and more of the architect designing the business model. This does not mean that the founder disappears; rather, he/she focuses more on developing the vision and culture of the organization and providing the necessary leadership to grow the business. The staff runs the day-to-day operations of the business.
Establish Roles and Responsibilities
To help facilitate this transition, identify the various functions within your business and determine which individual(s) will be responsible for each function. Ensure that no single function is dependent upon you to complete. Next, review your schedule and identify the meetings, decisions, and tasks that can be delegated to others. Establish a clear separation between what needs to be led by you and what can be managed by your systems and processes.
Value You May Not Be Able to Quantify
Investors and buyers of businesses seek companies that can continue to operate effectively without the founder. Companies that have developed a strong framework of systems, documented processes, and a team of self-sufficient employees will generate more interest. To maximize business sale value you need to create a business that operates effectively without you. While selling your business is important, building a sustainable business model means less stress, more options, and greater resiliency for you as the founder. Ultimately, building a business that can operate without you creates the opportunity for you to pursue strategic initiatives, innovate, and maintain the freedom to make choices.
Final Thoughts
While it is natural to want to remain engaged in all areas of your business, the true legacy of a business founder is to build a business that can operate successfully without you. When your business no longer relies on you to survive, that is not a negative loss of control; that is the point at which you realize your business is operating successfully.
