More than half of new businesses fail.
More often than not, the primary reason for failure is the lack of managerial skill and experience. The success of a startup or small business depends on getting ALL key tasks for the company done.
When entrepreneurs first start their company, they are responsible for most, if not all, the essential activities. They are able to handle many tasks because the tasks are still manageable. However, that will change quickly when the company begins to grow.
Many entrepreneurs and small business owners still attempt to perform the same various activities as their businesses begin to grow. They become overwhelmed by the increasing demand on their time, losing their drive and passion for the purpose and core of their business.
With so many things to deal with, entrepreneurs become much more stressed and they find that even though they work harder, it is becoming more difficult to produce optimum results.
The solution for this problematic issue is to have entrepreneurs concentrate more on doing what they love, focusing on the core business that made them create a startup company. All the other peripheral or supporting activities should be delegated, if possible.
Of course, however, that is easier said than done. Entrepreneurs and small business owners will be by nature vary wary of getting more personnel into the company.
There are several concerns that they have to get over. For example, the founder or entrepreneur has a difficult time trusting other people to do their work. They might believe that no one can do the work exactly how I want it and tend to be very critical of other people's work.
Also, entrepreneurs may simply not be aware of the tasks that can be delegated because he or she has not taken the time to examine which activities will require an individual with a certain expertise. Sometimes the founders of the company are afraid to take the risk of bringing in new employees because they are unsure how they will affect the company. Yet, entrepreneurs should know that risks are necessary for business growth.
To allay the fears, entrepreneurs should do due diligence in analyzing a calculated risk such as hiring a new employee. Considering potential benefits and costs should be determined.
Delegating responsibilities and tasks would not be so difficult for an entrepreneur to do, if he or she is confident in their ability to assign. Recognizing that delegation is something that must be done in order to nurture your company's growth is the first step. It is also beneficial to acknowledge that you will not be able to have total control of all activities and tasks within the company and that is ok.
However, to achieve success in delegation, communication with your employees is vital. Correspond effectively with your personnel in how and when you want specific tasks and objectives carried out. It is important they completely understand your standards of performance are clear. Perhaps establishing a calendar that tracks the progress of each appropriate delegation will help build the trust in your relationship with your employees as well.