Your small business is like your child. You've spent so much time raising it up that letting go can be extremely challenging. Plus, you are so used to doing everything and overseeing everyone that sometimes it's a matter of learning how to let go of the actual doing of it all.
The key to successful delegation is trusting the people whom you have hired to do their jobs. You have to have 100% trust in them because if you don't, you'll spend needless time checking up on them, worrying about if the tasks are getting done, and you'll end up defeating the purpose of delegation in the long run. If you can't delegate effectively, you will never be able to take your small business to a medium-sized business; you will be the limiting factor.
The Hedaya Capital Group in New York offers the following delegation tips:
- Trust the people whom you choose for the jobs.
- Pick the right person with the right skills for the job.
- Give newer people less responsibility.
- Inform them of what exactly you need done — don't leave anything up to guess work.
- Always be open to questions and growth opportunities
Plan For Mistakes
As you grow, mistakes will be made; this is part of the process. While you can't plan for specific mistakes, you can be expectant that mistakes will happen, learn from them, and have the financial wherewithal to withstand them. This is where having a great cash flow base and access to working capital from the best factoring company such as The Hedaya Capital Group can be life-saving. Don't forget that you need to have all of your financial ducks in a row if you are to expand.
We also recommend that you should not be afraid to make these mistakes. This is more about expecting them so that you can react appropriately because when mistakes occur and you are ill-prepared, you can easily make clouded judgement calls that can exacerbate the original mistake that could then snowball. Mistakes are learning opportunities.
Grow Your Accounting & HR Department First
Before you can effectively grow, you need the infrastructure in place first. Take a new subdivision as an example. When one is planned, first the roads are put into place. Next all of the underground utilities are laid, from the electric wiring and internet cables to the gas lines and main water and sewer lines. Then the sidewalks are poured. Finally, houses are built.
When you apply this to a small business, you need to ensure that your financials are in order, that your cash flow is where it needs to be to sustain growth, and that your HR department is prepared to hire more people, manage a larger amount of benefits, and can have the time to research better benefit packages in order to attract top talent. The Hedaya Capital Group in New York has seen too many examples of small businesses being overwhelmed by the growth in accounting needs and thus falling behind in many areas, including paying taxes and invoices. You need to maintain cash flow by having the team in place to ensure no bottlenecks occur in collecting on your invoices. If you need help, The Hedaya Capital Group offers accounts receivable management help, where we can help take that burden off your shoulders for you. Contact us today to learn more!
Be Wary of Debt
One of the first things small businesses do when they are eager to move from a small business to a medium-sized business is run out and immediately dive into small business financing options, such as commercial loans, credit cards, and merchant cash advances. This can result in a business drowning in debt before the cash starts rolling in from your growth strategy.
Instead, you should focus on stretching the assets and capital you do have. Alternative investments can help. For instance, you can factor your invoices from top factoring companies such as The Hedaya Capital Group in New York in order to obtain more working capital when you need it. Factoring involves selling your invoices to a factoring company in exchange for a certain portion of the face value of your invoices (usually between 70 and 90%). This involves you taking out no debt at all; you are merely leveraging the income (invoices) that you already have to have access to the cash now. This is a great alternative to taking out mounds of debt in order to finance your growth strategy.
Recruit the Right People
Let's face it, your business is only as good as the people you have working for you, from those who clean your office and make it a healthy and enjoyable place to work to those on the front lines who interact with customers. Thus, your HR department needs to carefully consider who you hire for every position. You should never just hire someone because you need a spot to fill. This will often result in irreparable damage to the customer experience that will end up costing you both in the time you waste with an employee who is an ill fit and in the lost revenue from the customers who were affected by the hiring mistake.
Once you hire them, retaining them is the goal. This can be equally as challenging in today's marketplace where the workforce has never been as mobile. In fact, in recent surveys, 50% of all workers are actively searching for new jobs. You can keep more top-notch employees by offering great compensation packages, employee perks (donuts in the office, anyone?), and an understanding of the need for a work/life balance. The Hedaya Capital Group in New York notes that offering flex schedules and letting employees take time off to attend kids' concerts at school, to go to doctor's appointments, and to trust them to get their work done goes a long way in creating employee loyalty to your company.
Have a Clear, Defined & Noble Mission
You need a buy-in; otherwise, everyone will be standing around waiting for someone else to take the first step.
Your buy-in as a small business is your mission. Because, let's face it, when times are tough (and they always get tough if they haven't yet), you have to have a reason to keep going. That's human nature. Otherwise, why bother? When the world is upside down, what prevents you from not going upside down with it? What will sustain you when the battle is in your mind and hearts, not in your products and services? What will tell you to get out of bed and not go into hiding? What will fire your soul to keep fighting when the world only wants to extinguish that fire?
You will need a clear, defined, and preferably noble mission not only for you to keep on fighting, but for your team to keep on fighting as well. Most wars fought in the 20th century were for "noble" causes, and in hindsight, most turned out for the best. Thus, define your mission well; your business and its growth depend on it.