Have you built a company and now you stand at the helm? How do you feel in the top position? Are you satisfied and your people and the company are prospering? Then you do not need to read further. However, if you are faced with doubts, the Business 2 Community website, in collaboration with members of the Young Entrepreneur Council (YEC), has prepared 8 factors that help decide when an entrepreneur knows it is time to leave as manager of the company and to hire or promote someone else.
1. Lack of enthusiasm
As the company grows, the way of working changes. It often happens that the owner's role in the company begins to grow beyond the entrepreneur’s skills. If the founder himself loses enthusiasm for the business that he has created, it is time to look for a replacement.
2. Poor retention
As the company experiences rapidly changing conditions the role of managing human resources, may take more of your energy that you could better use for further development in other areas. If your people are leaving, it is because of your mistakes as a leader. You need a great team for your great ideas. If you are not able to properly motivate them, they will not support your vision.
3. Too many worries for two hands
If an entrepreneur is getting too overwhelmed by his obligations, then it is almost certain that he will begin to neglect some parts of the business. This may cause demotivation in many of his colleagues. Moreover, he often loses the broader overview of the situations in the company. Team management is a full-time job and requires constant care and attention. If you have no time, find someone else who does.
4. Establish does not mean lead
Establishment of a successful company may be the domain of one person, but it requires a different set of skills to continue to grow. Many entrepreneurs are great visionaries, but bad managers. If the manager is not willing or able to manage and motivate people he should not lead.
5. No time to develop
If an entrepreneur is spending more than 50 % of his workday answering questions, calls and other communications, he is not able to proactively develop his own value-added business ideas.
6. Lack of respect
Respect is what differentiates a manager from a leader. The leader creates a natural respect in others, making his negotiations with people much easier. If there is a lack of respect, the will to follow decreases and dissatisfaction grows.
7. Delegation is difficult
As the business grows, the need to delegate tasks to other employees also grows. Often entrepreneurs have to compromise their way of doing things in favor of trusting their employees. Micromanagement and the tendency to do everything by yourself does not benefit the company.
8. Costs are increasing dramatically
The founders are in many cases great innovators rather than business-oriented managers. When cost are raising dramatically compared to revenues it is time to find someone else.
Does your business stand firmly on the ground or is it time to rebuild its foundations?
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