23 Sep Moving from a sole trader to a team based business
Moving from a sole trader to a team based business.
As small business owners, we often start off alone or with just a small group of supporting employees, but not a proper team. As the business owner or CEO, we take ownership of the majority of headaches and frustrations. We are most likely to be the first to arrive at work each day and the last to leave. Everybody else gets paid before we do. The business frequently centers on us and our experience and knowledge, and without us there would be no business. Does this sound familiar to you?
The problem with this business model is the absolute dependency it has on one person. If the CEO gets sick or debilitated for a long period of time, then the business is in danger of collapse. As a husband, wife, father or mother, if you fall over and die prematurely it leaves your family in an extremely vulnerable position, unless you have managed to buy lots of life assurance cover.
It is rare for one person to have all the skills necessary to run and scale a business and so it becomes necessary to hire employees to help carry the load. Many solo-preneurs try to go it alone and may succeed for a time, but it most certainly puts a cap on the earnings potential for the business and indeed its owner.
Therefore, if you want to move beyond a risky lifestyle type business and to grow it into something special, you need to bring in other people to help you run it. It moves the business from an “I” business to a “We” business. The transition from I to we is not an easy one. Not only do you have to recruit and train the right people, you must also learn to step back and allow them to make decisions for the business that previously were part of your domain. If you micro-manage the business, it will never achieve its full potential.
Some business owners try to run the growing business as a hybrid, wherein they bring in new employees but they do not empower them to make decisions. This type of business often lacks accountability and responsibility as the CEO continues to make all key decisions. It is a silo like structure with different people doing different activities but it lacks harmony and cohesion. It is a perhaps a team structure by name but the CEO has absolute power.
Click on the link below right now to access the full blog article on this topic and to learn how to build a team in your business and to understand its implications for the business owner…