For many people, starting a new business is a struggle that requires self-sacrifice for it to survive and grow. Most businesses are undercapitalized, forcing the owner to put everything into them to keep them running. You spend long hours with very little personal compensation simply because to survive you need to reinvest all the money back into the business.
You’re always taking a calculated risk with opening any business and hoping that the sacrifices you make to form a thriving business are going to be worthwhile in the future. Unfortunately, for many entrepreneurs their business venture turns into a trap that uses up all their resources instead of adding to their wealth.
Most people find for the first year or two after opening a business they have to push themselves and their employees to the limit. They spend all their time working in their business not working on it.
Delegation for success
To run a successful business, it’s important to know your strengths and weaknesses. Knowing how to use your strengths is the key. Micromanaging your business yourself is not necessarily the best option even if you know or think you know and can get everything done better than anyone else.
Other people may do things differently than you, but that does not mean they are wrong, a good leader understands that they just do not have all the answers so surround themselves with those that have the answers.
Selecting the correct employees and showing them you trust them by delegating important tasks and decision making responsibilities to them, they will appreciate the trust you have in them by helping to improve your company and leave you to lead the business.
During the first few months or even years of turning your idea into a functioning business, you may not be able to afford to hire a person to sweep the floors and remove the trash, do your bookkeeping and web design, but the fact is, these are not your jobs, your job is running the business. Once you come to this realisation your business will start to grow.
All the time you spend doing the jobs you should be delegating to others is time that your business stagnates and can’t grow, you’re not being an effective CEO.
The CEO’s job is to set goals, look to the future and spot issues, then delegate others to do things, to fix and solve problems. You are the person with the right motivation to grow your company. All the time you spend on tasks that really should have been delegated to others, you should be spending on building, planning and making strategies to improve your business and profits.
Your own Investment
When you own a business you really need to wear two hats, one as an investor in the business and the other as the CEO. These two aspects of your business must be separated and you need to ensure you are fairly compensated for both these roles. This may not be possible when you first start up. But it must become a priority as soon as possible.
As an investor, you need to see a fair return on all the money you have invested and as a CEO you need to get the salary you deserve as soon as your company is established. If you fail to do this then you will just be working in your company, your company will not be working for you.
Always Pay yourself
Some businesses are more profitable than others and have different development needs, but you need to set profit targets each year. If your target profit is 20 percent, then you should aim at using half of that for improvements and expansion and the remainder should go to the company’s main investor yourself. Working without a personal return even in your own company can lead to burnout and financial ruin.
You need to ask yourself when in business, whether you’re working for your business or is it really working for you. Often to get ahead in business, you need to step back and look at it from another view point. If you add another’s view point to the equation, it can help to expand your company in way you had not considered.
When your business is running successfully, it’ll be much less stressful if you are working on it rather than in it. Always ensure that you’re paying yourself a fair salary for the work you do and your investment of time and money. By delegating most of the work to others and taking the role of being the company visionary and troubleshooter, you will be able to spend the necessary time making improvements and enjoying your company.