On our previous insight we spoke about the first reason why business don’t achieve success: Liquidity / Financial hurdles and how to make a smart decision on how to solve this problem. But what happens when that is overcome? Is the leadership structure strong enough to take on the weight of the business?
What is leadership?
Leadership is not just having a great vision for the product. Running the overall business needs multiple skills, which might not all be strong points for the business owner.
While you might be fantastic at creating a product, you might lack the business experience to run the whole business. In this case, without a proper business manager, the business owner could mismanage the assets and risk harming the business.
How can you avoid this?
Like that famous quote about surrounding yourself with the most intelligent people, smart business owners will know their weak areas in running a business and hire an expert in that field to delegate activities and ensure that these areas are being run competently.
For example, suppose the business owner does not have prior financial experience. In that case, managing the books can be time-intensive and unrewarding. In this case, hiring an accountant, even part-time, can quickly alleviate this pain point.
Understandably, business owners can be hesitant in hiring people since you are giving away some business profits. But this needs to be thought of as actually a money-maker because of the time saved.
This means the business owner has more time to focus on doing what he loves. At the same time, the organization is being run smoothly.
While people involved in small businesses are expected to wear multiple hats, wearing all the hats can definitely be a problem!