So you now have 19 employees well done but…

You have grown successfully and have a dynamic business.

We have seen a number of businesses who do not understand that at this point you need to consider how you are going to manage the business.

A few years ago one organisation could not find a single business with more than 20 employees in a rural environment that made a profit where the owner was still “on the tools”.

Typically at this stage some or all of the following are true:

  • The owner or owners cannot carry everything in their heads.
  • The salesman cannot manage all the sales contacts.
  • The person doing the estimates does not have enough time.
  • Production needs planning rather than happening on time because everyone knows.
  • Etc.

A team approach must now be used to manage the business.

The danger is, and we have seen it several times, is between 20 and 30 employees things start to go wrong with growth disappearing along with the profits.

Among the things that may need to done are:

  • Delegating accountability and responsibility. So not all decisions are sent to the top.
  • Seamless systems from enquiry, to order, to invoice, to payment.
  • Key responsibilities in place for Sales and marketing, Technical Matters, Operational delivery of product or service, Accounting, HR and administration.
  • The entrepreneur should often step back from the day to day.

Every business is different but these are some guidelines.