(Five) 5 Reasons Why Your Business Is Too Dependent On You
The uncertainty of 2020 has given you a look at yourself and your team operating in crisis. If you were to draw a picture that visually represents your role in your business, where are you? Owners put themselves at the top, but many owners are stuck in the middle.
Think about a bicycle, are you steering it or are you the hub in the wheel?
The Hub & Spoke model shows how dependent your business is on you for survival. The Hub & Spoke model can only as strong as the hub. The moment the hub is overwhelmed, the entire system fails.
You have three problems:
Here's a list of the 5 top warning signs that show your business could be too dependent on you.
1. You Are the Only Signing Authority
Most business owners give themselves final authority… all the time. But what happens if you're away for a couple of days and an important supplier needs to be paid? Consider giving an employee signing authority for an amount you're comfortable with, and talk to your insurer about an employee bond or similar coverage.
If you haven't already done this, change the mailing address on your bank statements, so they are mailed to your home (not the office). Do this yesterday – that's how important it is.
2. Your Revenue Is Flat When Compared to Last Year's
Flat revenue from one year to the next can be a sign you are a hub in a hub-and-spoke model. No matter how efficient you are, every business dependent on its owner reaches capacity at some point. Your business might not have benefited from the pandemic, so 2020 might not feel good but look at your history – was revenue flat in the good times?
3. Your Vacations… Don't Feel like Vacations
If you spend your vacations dispatching orders from your mobile, it's time to cut the tether. Start by taking one day off and seeing how your company does without you. If you are bold, announce on Monday morning that you are leaving and can't be reached for three days. If you think that is dangerous, have an advisor available in your place.
4. You Know All of Your Customers by the First Name
It's good to have the pulse of your market, but knowing every single customer by the first name can be a sign that you're relying too heavily on your relationships being the glue that holds your business together. Consider replacing yourself as a rainmaker by hiring a sales team.
We know that you are the best salesperson, but if you are also the best operator and best human resources professional, the business has stopped growing.
5. You Get CC'd on More Than Five Emails a Day
Employees, customers, and suppliers constantly cc'ing you is a sign that they are looking for your tacit approval or that you have not made clear when you want to be involved in their work. Start by asking your employees to stop using the cc line in an email; ask them to add you to the "to" line if you really must be made aware of something – and only if they need a specific action from you.
Think deeply about your culture and the reason that you cc'd on emails. Do employees fear making a mistake, or have you not defined areas of responsibility?
