According to Fundera, 20% of businesses fail within the first 12 months, and one of the reasons is poor management. That is why you need to know when to hire a manager so that you can let a professional run things.
Many entrepreneurs don’t know when to hire, leave alone how to hire a manager. You need to look for signs that tell you when it’s time to call in the big guns. Here are a few of them.
Knowing When to Hire a Manager
When to Hire a Manager: When You Are Only Solving Problems.
You might notice that you are spending plenty of time fixing issues in your organization, instead of creating value.
When this happens, hire a manager to take up these responsibilities; that’s their job. As a business owner, you should be focusing on how you can increase the value of your offering and gain more clientele.
When to Hire a Manager: When the Team is Becoming Bigger
When your business is growing, you might see the need to hire employees. If your team size increases with the growth of your business, it might become too big for you to manage by yourself.
Every manager has a span of control. If you can only manage five people, ten people might be challenging for you, and the quality of work can be affected if you don’t hire a manager.
Hire a Manager When Scaling
When you are planning an expansion strategy, you might not have the time to manage your team and business operations. Therefore, this is when hiring management is ideal. But be sure you hire them before a new growth phase.
A manager will take over the operations of your business so that you can focus on your expansion plan. What’s more, a manager will help you to implement elements of your strategy.
Hire a Manager When You Get Overwhelmed
During the start of a business, things are slow, and you work fewer hours. Then things pick up, and you start working longer hours. Soon you realize that you are not able to do all the work you need to do and are not focusing on the bigger picture.
Moreover, people start a business so that they can have the flexibility and freedom to have a better personal life. However, this will not matter if you are working all the time.
Therefore, hiring a manager will allow you to focus on the bigger company goals and have more time for traveling and hanging out with friends and family. You can even read books regularly to gain authority in your niche.
When to Hire a Manager: When Someone Else Can Do It Better
As the founder of your brand, there are many things you are good at. You have probably worked in all the departments and solved a myriad of problems. However, you cannot be good at everything.
Hiring a manager allows you to get a talented professional with more experience and a stronger educational background than you. They can make your operations more efficient and increase your profit margins.
Which Sectors May Never Need to Hire a Manager?
Tech companies need leaders, not managers. Innovators need the freedom to think, experiment, and generate new ideas. But if they are under management, this will not be possible.
Many tech companies like 37Signals and Valve don’t have managers, and they hire self-driven employees. However, this does not mean that some tech companies don’t have managers. Well, they must lack a culture where employees are their own managers.
Processing plants also don’t need managers. A tomato processing company such as Morning Star does not have managers. It has empowered people to manage themselves.
Apparel companies also need no managers. For instance, at WL Gore, employees have sponsors instead of managers. There is no hierarchy, and everyone communicates with each other.
While most tech companies have adopted this model, other companies in all other sectors can do the same. According to Gary Hamel, the least efficient activity in your organization is management.
You don’t need to hire a manager; you need employees who can manage themselves. But if you can’t do it all by yourself, hiring help is fine. Whether it is a team leader or a manager, you need someone who can help you keep things on track so that you can fulfill the more significant objectives of your business.
If you have 99 problems, ensure management is not one of them.