When You Should Delegate

With skilled employees come fresh ideas and more efficient ways to operate.


Grim statistics suggest that 70 percent to 80 percent of businesses fail in the first year. Dun and Bradstreet predict that businesses with fewer than 20 employees have only a 37 percent chance of surviving for four years. It's no wonder business owners attempt to do everything themselves--from office maintenance to marketing.

After 16 years of owning my own business, I finally realized it wasn't profitable to do it all. From the day I opened my company until eight years ago, I tried to answer the phones, sell my products, copy and design mailers, attend chamber of commerce meetings, invoice, order inventory and, in general, run the company single-handedly.

I thought I was saving money by keeping the profits in the "family." In my mind, it looked good: no employees, no payroll taxes and very little overhead. What I missed was the fact that I was spending so much time on the little things that I halted productivity. Accomplishing all that I could in one day allowed me to operate the business cheaply but not necessarily effectively. I unknowingly hindered my ability to move the company forward and, in turn, increase revenue.

Do What You Do Best
Business owners should do what they do best, constantly evaluate the strengths and potential of the business, and keep their brainchild on track. Although most entrepreneurs are successful because they are in love with the idea of control, they must recognize that delegation doesn't mean relinquishing power. Growth and success require support. Before I added staff, I believed that the entire concept of Le Gourmet would be annihilated by new employees possessed with notions contrary to the way I ran the business. Instead, I quickly realized that with new talent came skilled individuals, fresh ideas and better ways to operate day to day.

At first, I thought no one could run the business as I could. I wrongly presumed that adding new individuals to my sanctuary would not only be an invasion of privacy, but also a complete fiasco. I expected those employees to lack the enthusiasm and drive that I possessed. Instead, I found that my new “family of professionals” was able to do things quicker and better than I could. Within months, I found that I had the time to write a book, keep more business engagements and develop a better brand and product line. For a reasonable hourly rate, I received in-house confidants, gatekeepers, troubleshooters, innovators and valued friends.


Content Continues Below



Delegating Multiplies Efficiency
Once I made up my mind to delegate, the transition happened quickly. The billing I previously did was transferred to an office manager who could produce invoices in lightning fashion, while my new accountant charged me a mere pittance for my quarterly taxes, financials, payroll and fatherly advice. Instead of wasting time searching the computer for special (and cheaper) airfares, I hired an in-house travel agent to handle the myriad of trips I previously slaved over for hours. Rather than answer the phone and deal with countless sales calls, I found a polite and qualified individual who would handle each call with finesse and make my company appear much bigger and more professional than it actually was.

I was amazed at the progress the company made with a few minor adjustments. I suddenly had a new and productive attitude, similar to when I first had the idea to become my own boss. I realized after acquiring competent staff members that I had been wasting my time with chores that weren’t on my list of passionate things. Along with my knowledgeable professionals came a breath of fresh air that I desperately needed.

To begin the delegation process:

  • Think about how your individual role most benefits your company, and cultivate that position. In other words, get rid of chores that you don’t want to do and focus on your desire for success.
  • Remove any undertaking that makes you feel stagnant. Replace it with something that can grow your image and increase revenue.
  • Hire the right individuals for clerical tasks, sales, accounting and basic customer service, and you can completely rekindle your attitude toward your business. Allocate jobs to the best professionals you can find, and you’ll appreciate the concept that your valuable time is even more precious than previously thought.

Your role as figurehead should revolve around better developing your original concept and distributing your enthusiasm to more complex aspects of marketing and product/service development, as well as management.

Letting go can be the beginning of a wonderful and productive change in your organization.


Cynthia McKay is a business growth consultant and CEO of Le Gourmet Gift Basket, a company she began as a small home based business in 1992 and has grown to 510 operating distributorships and more than $1 million in revenue.





Newsletter
Sign up for our bi-monthly newsletters:
Starting a Business
Sales and Marketing
Growing a Business
Tech/e-Business
Franchise News
Book Sampler

Enter E-Mail
Check out these special offers from our sponsors.
Subscribe Today! HireMyMom.com The Woman's Advantage Topshelf Reading Picks