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At a certain stage of the company’s development, the business owner is faced with a question the need to hire an executive director. This is a difficult and risky decision. It is difficult for an owner who personally manages his company to transfer control to someone else. There is a fear that the involved manager will not cope and will lead the business to collapse. Reality shows that the absence of an executive director is more dangerous than running a business on a stock basis due to lack of time.
It is possible to reduce the risk in two ways: to raise an executive director within the company or to contact a professional recruiting agency to select a TOP manager (link to the page Executive ). This ensures that a reliable, decent person and a qualified manager will be in place of the new leader.
In this article, we will analyze when an owner needs to hire an executive director.
You cannot or don’t want to do your daily routine.
A business owner is a person who created an idea for a product or service. He possesses such qualities as non-standard, creative thinking, dedication, willpower, striving for development and novelty. These qualities are necessary for the emergence of an idea, for creating a business. However, for business management, for solving administrative issues, for day-to-day personnel management, other qualities are needed.
The owner’s attention should be directed to business development, new ideas, and the company’s external environment. The executive director should direct his attention to the inside of the company, to the organization of work, personnel, finances, and the stability of the business.
The best employees, the backbone of the company, are leaving.
An owner driven by an idea is able to assemble a team, infect them with his ideas, motivate and set ambitious goals. However, ambitious goals require quick results and wear and tear. In this mode, employees burn out and can leave the company.
At the start of a business, the general idea and passion is enough. With the development of the company, a different motivation is needed. The number of personnel is growing, people come to the team not only for the sake of an idea.
The owner, overloaded with operational work, simply does not have enough time to work with the team he created.
In these situations, it is important to have a really competent manager who is able to monitor the daily situation with the staff and react in time to any changes.
Your finances are in chaos.
Finances require careful and thoughtful approach. Management reporting, financial analysis, budgeting and planning are required. The managing owner is not always able to competently build processes related to finance. Financial mistakes lead to significant losses.
You are constantly overwhelmed and emotionally burned out.
The owner of the company must maintain his own level of self-motivation. The business will quickly fizzle out if the owner stops generating new ideas. Immersion in everyday administrative tasks, running in a wheel, extinguishing fires is a direct road to a lack of time for project development and thus to a loss of self-motivation.
You are not achieving the goals you set for yourself.
A profit-oriented company must be in motion, constantly growing and developing. Plus, you have to run faster than your competitors. To move forward, the owner must set goals, develop development plans, and they must be effectively implemented. When there are no plans or they are not being implemented, you need a manager who will take on this task.
It happens that one person can combine the qualities and skills necessary to perform operational tasks and at the same time create and develop new projects, but if you are focused on growth and profit, it will be much more effective to divide these two vectors of tasks between two managers.