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Work On–Not In–Your Business

by admin on March 29th, 2010

Delegating tasks and learning to let go could be the key to business growth.
By Ray Silverstein   |   March 26, 2010

URL: http://www.entrepreneur.com/management/leadership/leadershipcolumnistraysilverstein/article205742.html

There is a bridge every entrepreneur must cross in order to grow a business beyond a certain point, a point where they must transition from “doing” to “leading.” It means stepping back from day-to-day operations and slipping into the role of overseer.

It also means learning to delegate more significant responsibilities to your employees. But for many entrepreneurs who view their business as their baby, this is more easily said than done.

Let’s go back in time to when you first formed your company, when you were involved in every aspect of running the business. As your firm grew, you needed help to get things done, so you began hiring.

You started by delegating specific tasks and duties to your new employees. Hopefully, as they proved themselves to you, you started giving them larger projects and eventually turning over actual responsibilities.

Learning to delegate is an ongoing journey. Half the battle is hiring people who you feel comfortable delegating to. The other half is creating infallible work processes.

Some of this simply comes down to good communication. In many small businesses, employees wear many hats. As a result, they are not always sure what their top priority should be. It’s your responsibility as the boss to tell them:

  • What their tasks and responsibilities are, and which of them take priority over others.
  • What doing a good job looks like. Don’t expect workers to instinctively know; it’s up to you to define and describe it. Provide good direction; be specific and give examples.
  • The limits of their authority, which might include budgets, time frames, and resources at their disposal.
  • Reporting criteria. How often do you want to get an update? What should it include? Do you want it in writing, or is a verbal report acceptable?
  • Where workers stand in terms of their job performance. You can’t expect people to make improvements if you don’t provide feedback.

Even if you haven’t created formal job descriptions and performance reviews–which many small businesses don’t–you can still communicate this information to employees.

But what if you don’t have the right people in place and aren’t comfortable delegating certain tasks?

You can provide training designed to get employees’ skills up to par or shuffle employee positions around. Some employees don’t want the responsibility of thinking; they want to work on autopilot. Perhaps there’s a place for worker bees in your organization?

If there isn’t, and nothing is working, you may have to take that difficult step of replacing them with people who will accept responsibility eagerly. That’s leadership at its toughest.

Once you put the right people, programs, and processes into place, your business should practically run itself. It is at that point that you can safely disengage long enough to provide the vision essential to your company’s long-term growth.

That being said, delegation is never abdication. Rather, it’s learning to work on the business instead of in the business. Good leaders know when to get out of their own way.

++++++++++++++++++++++++++++

Amen to the article…only took me 10+ years to figure this one out!

Cheers!

-Kevin

www.kevincohen.com

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UG6 – A Young Entrepreneur That I Met…

by admin on March 22nd, 2010

I met Aaron at Yanik Silver UG6 Conference.  Great guy, but enjoyed this video he created.  Enjoy!

Cheers!

-Kevin

www.kevincohen.com

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SalesMonkeys.com – A KCC Client

by admin on March 10th, 2010

My friends, Joe and Matt, have created an information product called Selling is Easy™.

Great tool for the salesperson or sales manager looking to improve performance.

Having a blast working with them.

Cheers!

-Kevin

www.kevincohen.com

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10 Things Every Small Business Should Buy

by admin on February 20th, 2010

Great article by Scott Albro for start-ups and small biz.

Cheers!

-Kevin

www.kevincohen.com

+++++++++++++++++++++++++++++

Replicating the F500 Back Office: 10 Things Every Small Business Should Buy (F500 Handbook)

ANALYSIS BY: Scott Albro, Founder, CEO

PUBLISHED: Feb 12 2010

AUDIENCE: SMB decision makers, owners

TOPICS: back office, f500, start ups, entrepreneurship

Introduction

Small businesses everywhere are now replicating the capabilities of F500 enterprises with remarkable ease. This is especially true with respect to horizontal business functions that reside in the back office. These are functions that are dedicated to running the business itself, like human resources, finance, and procurement. Thanks in large part to the internet, the build out of these functions has become a straightforward proposition. This Brief looks at the basics of how a small business can leverage back office capabilities that have historically been the domain of the large enterprise. It’s part of series of Briefs that examine how even the smallest of businesses can build a F500 enterprise from scratch.

Analysis

Here are 10 tools that any size business can use to build out a Fortune 500 back office:

  1. Payroll Processing – Often thought of as a tactical function that simply allows a business to pay employees, HR can take on strategic importance when you think about how important it is to hire and retain world class talent in the early days of a business. Get payroll wrong and you will have unhappy employees, guaranteed. You can and should outsource payroll processing to someone who knows the ins and outs of a fairly arcane topic. There are a variety of options here from market leading incumbents like ADP to upstarts like PayCycle (now part of Intuit).
  2. Telephony – Voice communication is critical to the success of any size business. Now, full featured phone systems are available to the small business community via hosted options from vendors like Vocalocity and 8×8. Even advanced call center automation is now available to businesses of all sizes with services like FonGenie.
  3. IT Infrastructure – There are a range of information technology investments you should make. You will, of course, need a suite of personal productivity tools and applications which are now widely available from the likes of Microsoft and relative newcomer Google Apps. Less obvious investments that you should consider include a back-up system for your mission critical data. Options here vary: for Windows users, there’s Mozy Pro; Apple has the straightforward, intuitive Time Machine; or you can get a little more advanced with something built on Amazon S3. The list of IT investments goes on… from security, to internet connectivity, to storage and virtualization.
  4. Accounting Software – While not every business requires a full feature financial management solution, you should adopt an accounting package that handles basic functions such as general ledger, accounts payable, and accounts receivable. And it’s best to invest in a package that will provide more advanced capabilities such later, as your business grows. QuickBooks is the clear market leader in this space, but other vendors like NetSuite may be more appropriate if your business is growing rapidly.
  5. Capital – While the current economic climate certainly makes it harder for small businesses to access capital, it’s certainly possible for businesses to more capital efficient than ever. Moreover, there are new models emerging such as peer to peer lending from websites like Prosper that provide businesses with easier access to capital.
  6. Benefits – Employees now value and expect benefits to be a common part of their compensation packages. You should consider medical, dental, and 401(K) options as standard benefits that your employees will expect (note though that you should not be expected to match 401(K) contributions by employees). Companies like Trinet can manage the entire benefits process for you.
  7. Marketing – It used to be that building and running a world class marketing organization required lots of money and people. Now, there are plenty of lightweight, de-risked marketing solutions available to small businesses that help with both branding and demand generation. Google is the most obvious of these, but plenty of other efficient options exist, including from companies like Facebook.
  8. Website – Almost every business has a website now. While many are still stuck in the realm of brochure-ware, there are a variety of tools available for building out enterprise-class functionality such as Shopify, for building out e commerce functionality, and Bazaarvoice, for building out community features.
  9. Conferencing – Online conferencing solutions now provide small businesses with the geographic reach that used to be the exclusive domain of Fortune 500 travel budgets. Citrix, WebEx, and Adobe all provide low cost, enterprise class options for conducting online meetings with prospects, partners, and remote employees.
  10. Industry Specific Software – Depending upon what type of business you run, you will want to make an investment in software that automates the most complex aspect of your operations. For example, if you are a “supply-dependent” business and want to spend less more efficiently, enterprise class procurement solutions are now available to small businesses from vendors like Coupa. If your business requires personal interaction with prospects and customers, you will want to invest in CRM software from the likes of Salesforce.com or Microsoft Dynamics.

Conclusion

There are certainly many other things that a small business can invest in to replicate a Fortune 500 back office. Please feel free to add to this list in the comments.

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