(But know when to let go)

Running an SME is not for the faint hearted, whether you are starting up, buying a business or taking over a business where you previously were an employee. There are many factors at play, but I feel that one of the most important factors is that in order to run a cracking business, you need to be a control freak.

You must demand the highest standard of yourself and your staff, and you must, particularly in the early stages, oversee the development of all aspects of your business. This gives you a grass-roots understanding of how things are done, where improvements can be made, and what can be delegated down the chain of command.

For the proverbial control freak to manage a growing SME, said control freak must implement checklists, procedures, processes and policy documents so that any current and incoming staff can understand the desired method for the task at hand. If staff have suggestions on how things might be improved or completed more efficiently, then they should be considered.

It is vital that the owner/control freak monitors the use of all implemented policies. The owner/control freak must control the methodology, otherwise there will not be standardisation across the business processes. A growing business will have a lot of trouble maintaining quality and consistency across the business functions without this standardisation. At some point in the business lifecycle, setup and review of procedures can be delegated, but decision making should be centralised and the final call be made by one person.

As the business grows, the control freak needs to know when to let go. If appropriate procedures, processes, checklists and policy documents have been adequately prepared and reviewed, the owner/control freak should not micromanage the situation. In order to gain capacity, the owner/control freak must rely on the documentation to do its job and ensure that appropriate review processes are in place to manage quality control.

This is a very difficult balance to strike and one that, frankly, many SME owners do not get right. I have seen many cases where business turnover has grown rapidly and the owner has not taken a hands on approach in the initial stages. The result has often been poor quality of output, cost blowouts and high staff turnover. Worst of all, profitability can suffer.

I have also seen the growth of a business stunted due to an owner not implementing procedures, or not placing trust in staff to follow the procedures outlined. Too often, there is heavy reliance on the owner and one or two key staff who hold all the knowledge in their heads. These key staff become “bottle-necks” within the business, and if they take annual leave or get crook (or, god forbid, quit!!) the wheels fall off. The business may miss opportunities to expand and take on better and/or bigger projects and clients.

Start out in control, setting up and sticking to policies, procedures and checklists. Regularly revisit them for constant improvement. Once set up, ensure all staff are aware of where the SME stands in terms of its adherence to the parameters. The control freak can then breathe easy with the knowledge that the team knows where the boundaries are, and where they can make their own calls.