Q: Right now we”™re short staffed to save money. As a result, I”™m spending a lot of time coordinating jobs. I can”™t focus on sales and worry that we won”™t have enough work later in the year. I”™m trying to do too much and my stress level is way up. Help!
Thoughts of the day: A common problem in SMBs, or small to medium-size businesses, is getting spread too thin. Owners are resourceful and willing to pitch in wherever they”™re needed. That”™s good in the beginning when things are getting off the ground. Long term, however, it”™s bad, getting in the way of finding and filling the holes.
SMBs start out needing people who can multitask. Each job is not big enough to require full-time staff. The owner is usually the one to first learn the multitasking skill.
The downside is that an owner who is tied up in details and running around chasing problems doesn”™t have time to measure, manage and plan. One month the owner focuses on sales. The next month sales are up, the owner jumps into operations and sales loses momentum. It becomes almost impossible to establish a steady constant flow in either area. Cash-flow problems crop up. The stress and strain of constantly changing focus and playing defense start to wear on the multitasking owner.
Every business owner needs to learn how to step back and focus on the long-term growth and development of the business. As the business grows and jobs become more demanding and take more time to do, a new set of skills is required. The game shifts from multitasking to specialization. Owners, people in the field and people in the office all have to focus on what they”™re good at and train replacements for the things they give up. Think about how to reorganize so people can report on what they”™re doing and you can run the business.
Certain areas of the business will benefit from specialization sooner rather than later. Sales is one of those disciplines that will benefit from having dedicated staff and a working plan. The owner has to decide if sales is an area he or she plans to specialize in or hire someone who will. That decision has to be based on a realistic assessment of the owner”™s skills in sales.
Many owners are really good at sales and should keep on selling. Others end up in sales because no one else is willing to do the job or because no one else can speak to prospects as passionately about the business. That”™s not necessarily the right reason for putting the owner front and center in sales.
Prioritize growing sales in order to make more money. Hire people who are skilled at identifying leads and closing on opportunities; people who can work with the owner, learn about the business and apply their selling skills to growing the company.
As sales rise, build up staff in operations and administration. Put someone charge. If you can”™t afford a full-time operations manager, consider hiring someone who can be a working supervisor.
Whoever ends up doing sales, operations and every other part of the business, make sure that there are weekly, monthly, quarterly and annual goals, reports and meetings. Measure results in both quantity and dollar value. Be sure that the company has enough selling activity to keep sales growing in the future. In operations, set standards for lead times, customer satisfaction and inventory levels. Teach people to assess performance against standards.
Free up the owner to put more time into planning, evaluating and charting a growth path for the business. Pull back from daily responsibilities. Read reports, gather data on the company”™s overall performance and make decisions on where to go next.
Looking for a good book? Try “The Official Small Business Owners Manual, A Comprehensive Blue Print for Building A Profitable Small Business” by Larry Brown.
Andi Gray is president of Strategy Leaders Inc., strategyleaders.com, a business-consulting firm that specializes in helping entrepreneurial firms grow. She can be reached by phone at (877) 238-3535. Do you have a question for Andi? Please send it to her, via email at AskAndi@StrategyLeaders.com or by mail to Andi Gray, Strategy Leaders Inc., 5 Crossways, Chappaqua, NY 10514. Visit AskAndi.com for an entire library of Ask Andi articles.
