My small business management company gained the trust of other small businesses by pointing out the three biggest liabilities of managing the daily operation of your own small business. Then we would promote the delegation of the three most time consuming areas of daily operation.
I. Murphy’s Law: The main issue with trying to oversee the daily operation of any small business is that no matter how well planned your time is to be spent, something will disrupt that schedule and no amount of leeway can keep it on track. If an owner/operator has to attend meetings off premises and the staff doesn’t show up, he is not only going to lose an opportunity to network, but possibly some important information as well. Not only does he lose, but he is going to be frustrated to boot. Small business management companies have the staff on call to fill daily job duties. Those staff members have been screened, instructed, and assured of their salaries. They know what they have to do and know their job security depends on their production.
II. Employee Relationships: That leads into the second biggest liability of daily owner operation where employees of a small business owner are often family or friends. Too often those employees expect the owner to be too understanding of every reason they have to let them down and why they don’t have to give proper notices. Employers have to maintain an emotional distance from employees in order to maintain a professional relationship.
III. Time or Money: When the owner/operator of a small business is at a point where he is spending 12-18 hours a day, 7 days a week and just covering expenses with a little left over; when they are feeling frustrated because they know other businesses like theirs are growing, but just don’t have the time to find out how, that is the time to call in small business management. An owner either has the Time to study his competitors and make growth decisions or the Money to pay his bills, never both.
We would meet with a small business owner to discuss his concerns and decide how much direct control he was comfortable relinquishing. There are three general responsibilities that are easy to delegate to an outside firm.
Staffing: Usually staffing was the first responsibility to be relinquished. We would observe the current staff for a few days and then call a meeting to introduce ourselves and explain our position as an outside management company. We would then fire everyone. After settling them down again, we would offer them the opportunity to apply for positions with our company according to our rules.
We have always believed that a well trained, stable, devoted employee base is necessary to establish a solid foundation for a strong business. We believe employees are the backbone of any business, small or large. They project the business brand from the front counter contact to the attention they put into every job function. Once a good staff was in place, we would have regular meetings to keep the team up to date on company status and changes.
Supplies: The most time consuming part of any business is maintaining a balanced supply stock. A good supply officer will shop around and compare not only price, but performance, durability, multi-purpose uses, and safety factors of all necessary supplies from cleaning products to tools of the trade and furnishings.
Operational Expenses: These necessary and variable expenses include insurances; phone, office, and electronic equipment; repairs; and professional services. We would compare the service/product and rates of at least three competitors. After researching their performance we would take our suggestions to the owner for the final decision.
Small businesses can only grow with a determined entrepreneur/owner and a proficient operations management team. Knowing when to outsource some of the daily operational duties can mean the difference between surviving and succeeding in the world of small business.