Having a management team in place is vital if you want grow the business.
It builds resilience into the business making it easier to take shocks such as illness or even regular inconveniences such as holidays.
Having a management team in place is a sign of maturity. It means the owner can step away from the day-to-day running of the business and spend more time on strategic issues: working on the business instead of in the business.
If the owner is only minimally involved in the day-to-day running of the business then it is much easier to sell the business - when the time comes.
For even the most dedicated, super efficient control freak, there is a physical limit to what they can achieve.
In fact, the most efficient and productive people are the ones who know when to delegate and who to delegate to.
For micro businesses the choices for delegation are pretty limited, but as soon as personnel are added to the business and it becomes more complex then effective delegation becomes vital if the business is to survive and thrive.
However, resilience can only be built into the business if operational decisions can be shared. If the people on the spot have the tools and the power to make operational decisions to keep everything moving.
While the management team may be comprised of traditional functions such as accounts, sales and operations this does not mean that a rigid bureaucratic hierarchy has to follow.
The important message in the building of a management team is the freedom it starts to create for the owner. Additional time can be found for important longer term strategic matters such as how to develop the capability and size of the business further.
Additionally, creating this time and space makes it easier to enjoy the benefits of having a successful business.
Finally, an autonomous business that can run itself without constant interventions from the owner is a highly saleable entity. With a good team in place the business can be sold at any time.
This is an additional level of control and choice which can be very liberating.
