Tuesday, September 6, 2011

When Good Habits Become Bad

Starting and running a small business (less than $1 million in annual sales) is a lot different than running a bigger business. A founder that breaks through that $1 million in annual sales barrier often finds many challenges waiting for him or her on the other side, and parting with old habits to embrace a new way of doing and seeing things is harder than it originally appears.

In a small company, the founder has to do everything and be involved in everything. Letting go of every detail is required to grow. In fact, failure to do so can actually hinder growth (see my recent AMEX article 5 Ways to Stop Stunting Your Growth).

When the company is small, it is easy for the founder or business owner to keep all of the details of the company in their head, elimating some of the need for timely financial and operational reporting. However, as the size and overall complexity of the business increases, reporting has to replace being involved in every detail of the day-to-day operations.

KEY TAKE-AWAY:
You need to grow and evolve as your business does, or else you need to hire someone to run your company while you focus on bringing it value in the most effective way possible.