Most creative businesses are built around a single individual -- whether a name designer, planner, or photographer. As the business grows, the capability of that individual to do it all becomes impossible (or incredibly stressful) even with an assistant or two. When this happens (and, hopefully, it will (or has) happened to all of you), you will have to decide whether you want to remain an entrepreneurship or become a business.
Entrepreneurs have a very difficult time letting go of any part of their business. Their operations are structured in a way to make sure they are involved in every decision and nothing happens without their input. Think Jimmy Carter scheduling time on the White House tennis courts. Most often, they are surrounded by people who are functionally capable, but managerially challenged.
Businesses, on the other hand, are structured so that each aspect of the business is self-sufficient and supports the greater organization. A business' leader receives information necessary to chart the course of the organization, but not so much as to interfere with the daily operation of each division. Assuming this role takes courage, confidence in employees and an effective structure.
To begin, you have to give over the power to say yes. A huge leap for sure. You will no longer have you finger on the pulse of it all and will have to accept the decisions that are made by your staff.
This is not to say that you just turn over the keys. That's fools play (remember my dentist). You have to assign responsibility AND authority. You also have to understand that tension between divisions is a NECESSITY in any good business. The tension between design and production, sales and operations, marketing and accounting. Used positively through a well designed system of checks and balances, the tension will create a solid foundation and support the organization's growth. Used improperly, the tension will implode the organization with in-fighting and interminable power struggles. Your structure should inspire each area of the business to solve the other's problems versus stopping its progress. You accomplish it by having each be invested in the other's success -- whether financially through profit-sharing of some kind or, non-financially, by having a member of each team responsible in some way to the other. You do not accomplish it by undermining the responsibility and authority of any employee (manager or not) unless that person is going outside the scope of his/her responsibility and authority (i.e., undermining the structure of the organization).
The irony is that, in the end, the person who runs a business will be far more powerful than the entrepreneur. If your ship gets big enough to have a separate engine room, it's really hard to steer it if you have to be in the engine room all the time.
The most wonderful side benefit of evolving from an entrepreneurship into a business is that empowered and motivated employees typically are deeply invested in the organization's (as opposed to their or the individual artist's) success. Think Zappos, Apple and Amazon. Motivated and smart people will take your organization further than you ever could or dreamed you could. It all starts with giving everyone in your business the power to say yes.
That's the best post so far. Thank you just when I needed to hear that.
Posted by: saundra, event engineer | March 23, 2009 at 09:41 AM
Excellent post...goes straight to the point of making sure you hire people who are top notch. The interview process at my company lasts about 3 months! Once you are on board you are given the responsibility to do your part in moving the company to success. This is the 3rd start-up I have been involved in and in each success depended on the team being able to say yes! Of course the team has to be making the right decisions :)
Posted by: J Sandifer | March 23, 2009 at 09:57 AM
This is an excellent post and exactly what I've been working on for the past couple of weeks. I have finally realized that in order for my company to reach the amount of success I know it can, it has to grow. Which means I need to let some things go and get some capable people to help me get to where I know this company can be.
Posted by: Shanika Butts, Charlotte Wedding Planner | March 23, 2009 at 10:15 AM
Thank You Saundra
Posted by: Sean Low | March 23, 2009 at 10:15 AM
Shanika --
That is great news for your business. FYI -- never a huge fan of just adding bodies. Have to have the structure in place for where they should go.
Posted by: Sean Low | March 23, 2009 at 10:22 AM
Another great post & right on time with the direction of where my company is headed.
I am a firm believer in "building my bench" & so excited that growth is happening.
It is definitely a process, but with structure the transition will be invisible to my clients!
Posted by: Latrice Cushenberry - Bridal Opulence Nashville Tennessee | March 23, 2009 at 12:11 PM
Thank you for another wonderful post. This part:
"The most wonderful side benefit of evolving from an entrepreneurship into a business is that empowered and motivated employees typically are deeply invested in the organization's."
was an Ah Ha moment for me! I'm so glad that you are sharing your knowledge with all of us.
Posted by: Wendi Hroncich | March 25, 2009 at 04:36 AM