Entrepreneurship & Small Business

The Small Business Owner's Dilemma

  • Last Updated:
  • Mar 18th, 2023 2:06 pm
[OP]
Newbie
Mar 13, 2023
3 posts
1 upvote
Ottawa, ON

The Small Business Owner's Dilemma

Hi. I'm new here, so I figured I'd introduce myself before hounding everyone with questions. I started a company from home roughly 8 years ago that has grown into a small business. It has moved from my home into a commercial warehouse space and I now have 4 full time staff members and some part time staff.

I never really intended to be a business owner. This thing is more or less a side-hobby that grew out of control. I quit my previous career to do this full time because the time investment required it. I don't pay myself extravagantly, but certainly more than I'd ever earn anywhere else given my education and experience. I did like most, putting in 60+ hours a week for a long time. For the last couple of years I've been limiting myself to 40 hours a week to have more time for my wife and young kids. I even take a vacation a couple of times a year. Never thought I'd be so lucky!

It all sounds great, but I have concerns about the longevity of the business. As the business scales up, I find myself needing to shift more and more of my work to other employees. But, I'm TERRIBLE at training and managing staff (or I'm just not hiring good people).

Personally, I tend to pick up things very quickly with minimal effort or instruction. I also instinctively troubleshoot and work through challenges myself. I don't think I'm particularly smart. That's just how I've always been. However, apparently I'm the exception to the rule. My workload is growing too fast and I need to divide tasks up between me and my staff, but I am simply unable to train them to perform the same tasks as efficiently or reliably as me. No matter how much I train them, it still takes them longer to do the same thing and they make more mistakes. Also, none of them seem to think for themselves to troubleshoot through unexpected problems.

We have a great employee retention rate, and I feel I pay my employees well and treat them well. I don't bother them when they need time off, question them when they're sick, or contact them outside of work hours, no matter what. We all get along well, and there's no workplace drama. I am constantly told I'm a great boss and it's the greatest place to work, bla bla bla. It's really nice to hear, but I feel like a terrible boss. There are days when I'm honestly losing my mind...

I've been an employee under some pretty awful management, so I really try to be the opposite of that:
- I REALLY don't want to micromanage my employees. I HATED IT when it was done to me in previous jobs. But, I'll lay out a task with specific parameters, and they seem to only do half the job. I constantly feel like I need to micromanage or just do the work myself, or it doesn't get done on time or properly.
- I try to lead by example, following the policies and procedures we have established to keep everything organized and efficient. Yet, they don't seem to follow this example. I constantly find places where they've taken short cuts, skipping steps to save time. But, those skipped steps always cause problems in the future.
- Okay, now I'm just venting. But you get the idea.

I am aware of my shortcomings as an entrepreneur. I hesitate to even use that word because I don't "rise and grind" or promote my business to everyone I meet or anything like that. I'm not that guy. I just happen to own a business. I'm sure these are common struggles with most people growing a small businesses.

If I could phrase this stuff in a couple of simple/quick personal questions to my fellow business owners:
- How did you find competent and reliable people? How did you keep them?
- How did you decide how to divvy up the tasks of your business between you and your staff?
- How do you train your staff to do your job as well as you? Or, is that just an unrealistic expectation?
- How do you get rid of dead weight? Most of my staff are fine, but I have one staff member who is very slow and makes frequent/repeated mistakes. It costs more money to have him on staff than if he just wasn't there. I'm genuinely relieved when he calls in sick or books time off. I've never "fired" anyone and fear getting sued or something like that. Labour laws seem crazy in favour of employees. What is the process here?

Anyways, any help would be appreciated. Even if your help is just to tell me I'm an idiot. All feedback is welcome.
9 replies
Deal Fanatic
Jan 21, 2018
8107 posts
8905 upvotes
Vancouver
There's a universal principle called "regression to the norm". Basically it means that if things start off great, they will most probably trend toward the average over time. For example you may start off with just a few carefully selected employees who are superstars dedicated to the business, but as you expand and hire more employees you will get some duds, your superstars will burn out or develop other interests, and eventually you will end up with an average mix. Sooner or later every employee problem you didn't anticipate happening will come up, and you'll need to develop a formal policy. Sooner or later you'll have to fire someone, and you'll need to figure out how to do that

If that's not what you want to spend your time on, then hand the management of the business over to someone else, divorce yourself emotionally from it, and go do what you want to do
[OP]
Newbie
Mar 13, 2023
3 posts
1 upvote
Ottawa, ON
That's helful info. Thank you.
Scote64 wrote: If that's not what you want to spend your time on, then hand the management of the business over to someone else
I would welcome someone else taking the reigns, but wouldn't even know where to start that process. How do you find the right person, or people, to take over the reigns of the business?
Sr. Member
Mar 6, 2007
691 posts
67 upvotes
I can give you a fairly solid answer on your last question about termination. First, hire a lawyer to discuss the termination and to look over the termination documents. Second, give that staff a generous severance. A ballpark example: minimum of 1 month + 1 month for every year worked; your lawyer will inform you what is considered a super generous severance. Basically, you want that employee happily gone without any mess afterwards -pay the money, save headache.
Deal Addict
Aug 28, 2007
2107 posts
484 upvotes
Calgary
You are putting yourself down. You have successfully solved 90% of the problems of running a business. You may not realize it, but you are on the same path as many successful entrepreneurs. The step of having a full-time payroll in the first place is a milestone many entrepreneurs don't ever reach before their venture fails. You're already on hurdle 10 or 15, so don't panic.

It seems you are just experiencing some anxiety over "employee / HR" issues. Given that you are getting the accolades for a great place to work means you are doing many things right. Here are some nuggets of mine that many people don't want to admit.

- a large percentage of people don't have what it takes to be an entrepreneur (or ever will), so they won't be able to work through problems like you. No amount of training can solve that. I'll never be a heart surgeon, pilot or hockey player... that's just how it is!
- Essentially you are a "10" and your current employees are "4's" at entrepreneurship. But those folks will be reliable employees and training works for them. They can become a "10" at certain tasks within your business process. You'll only meet 2-3 people before you find one.
- I find hiring people for a 30 day contract is a good way to test drive somebody. After a while all you need is 15 minutes over coffee to size up someone for a level "4" job
- The person you want to be solving problems as your shop manager level is about an "8". Good enough to be trusted but not a "10" or else he'd get bored, quit and start his own firm competing with you.
- The problem is an "8" is more statistically rare than a "4" so you have to meet and get to know more people to find one (say 30-40). So you combine marketing and socializing because good people can be hiding in plain sight. He may be underemployed and loyal to his employer. Doesn't matter if he is a lowly labourer or clerk.
- I find education credentials are not what they used to be, so it is risky to hire someone on those alone. Instead, you'll want enthusiasm, ambition, reliability, punctuality, pragmatism, honesty, humilty, integrity, and a dreamer. Things you don't learn in school.
- It also appears you have already acquired a "1". You just can't find a spot in your business where they can excel. If you feel generous you can try to help him identify his strengths and find him a job elsewhere. Or it will be your first "lay-off due to lack of work"

Getting all the right people running your business is the objective. Then you can spend time being a strategic thinker to make your business expand. You will need to do this before you either sell your business or retire.
Sr. Member
Sep 22, 2010
909 posts
1257 upvotes
Victoria
Some great advice above. I'll add the following: Set clear written performance expectations that are tied to raises. If they make the grade they get a pay bump, if not...

Checklists, checklists, checklists. Get the staff to check off on paper each step as it is completed. Review the submitted checklists weekly and meet with the team members to find out why steps were skipped.
Last edited by calvados.boulard on Mar 18th, 2023 3:53 am, edited 2 times in total.
Newbie
Jun 8, 2020
5 posts
3 upvotes
Small business owner here, as well, so talking from experience :).
- you will NEVER find and retain for long an employee to perform with the same efficiency as yourself. Learn that and get used to it
- learn how to detach - I know is extremely hard, this business gives you so much satisfaction. But what about "loosing your mind" sometimes?! That's 100% you, taking things too seriously - at the end you work to live, not the other way around
- you are a VERY successful and and EXCELLENT entrepreneur. You know what people like you do, usually? They expand their "practice", i.e starting another business and leave someone else in charge for the one they just built
- if the business starts "taking on you", i.e. you're beating yourself up over it, maybe is time to sell it. I learned that the hard way: started "loosing my mind", not caring about family or my health, being too stressed over it. I found myself, due to not being able to manage the (self)stress, changed... in a wrong way - still hurt over it. I lost most of it and then I found a job, a very good one. One of the partners told me his story: he built a very successful business, up to 30-40 employees, then he sold it to a VERY BIG company, and he became a partner with them. Sort of a business owner, but with specialized people and specific policies, so he doesn't have to worry about everything. He can focus on what he's good at, no HR headache.
Saying it again: LEARN how to detach, learn to let it go and focus ONLY to what's important, things that really make a difference. And delegate - I know, you will lose money and maybe clients over it, but I guess is better than loosing you mind :).
All the best!
Deal Fanatic
Sep 23, 2007
5502 posts
1845 upvotes
skidofshame wrote: Hi. I'm new here, so I figured I'd introduce myself before hounding everyone with questions. I started a company from home roughly 8 years ago that has grown into a small business. It has moved from my home into a commercial warehouse space and I now have 4 full time staff members and some part time staff.

I never really intended to be a business owner. This thing is more or less a side-hobby that grew out of control. I quit my previous career to do this full time because the time investment required it. I don't pay myself extravagantly, but certainly more than I'd ever earn anywhere else given my education and experience. I did like most, putting in 60+ hours a week for a long time. For the last couple of years I've been limiting myself to 40 hours a week to have more time for my wife and young kids. I even take a vacation a couple of times a year. Never thought I'd be so lucky!

It all sounds great, but I have concerns about the longevity of the business. As the business scales up, I find myself needing to shift more and more of my work to other employees. But, I'm TERRIBLE at training and managing staff (or I'm just not hiring good people).

Personally, I tend to pick up things very quickly with minimal effort or instruction. I also instinctively troubleshoot and work through challenges myself. I don't think I'm particularly smart. That's just how I've always been. However, apparently I'm the exception to the rule. My workload is growing too fast and I need to divide tasks up between me and my staff, but I am simply unable to train them to perform the same tasks as efficiently or reliably as me. No matter how much I train them, it still takes them longer to do the same thing and they make more mistakes. Also, none of them seem to think for themselves to troubleshoot through unexpected problems.

We have a great employee retention rate, and I feel I pay my employees well and treat them well. I don't bother them when they need time off, question them when they're sick, or contact them outside of work hours, no matter what. We all get along well, and there's no workplace drama. I am constantly told I'm a great boss and it's the greatest place to work, bla bla bla. It's really nice to hear, but I feel like a terrible boss. There are days when I'm honestly losing my mind...

I've been an employee under some pretty awful management, so I really try to be the opposite of that:
- I REALLY don't want to micromanage my employees. I HATED IT when it was done to me in previous jobs. But, I'll lay out a task with specific parameters, and they seem to only do half the job. I constantly feel like I need to micromanage or just do the work myself, or it doesn't get done on time or properly.
- I try to lead by example, following the policies and procedures we have established to keep everything organized and efficient. Yet, they don't seem to follow this example. I constantly find places where they've taken short cuts, skipping steps to save time. But, those skipped steps always cause problems in the future.
- Okay, now I'm just venting. But you get the idea.

I am aware of my shortcomings as an entrepreneur. I hesitate to even use that word because I don't "rise and grind" or promote my business to everyone I meet or anything like that. I'm not that guy. I just happen to own a business. I'm sure these are common struggles with most people growing a small businesses.

If I could phrase this stuff in a couple of simple/quick personal questions to my fellow business owners:
- How did you find competent and reliable people? How did you keep them?
- How did you decide how to divvy up the tasks of your business between you and your staff?
- How do you train your staff to do your job as well as you? Or, is that just an unrealistic expectation?
- How do you get rid of dead weight? Most of my staff are fine, but I have one staff member who is very slow and makes frequent/repeated mistakes. It costs more money to have him on staff than if he just wasn't there. I'm genuinely relieved when he calls in sick or books time off. I've never "fired" anyone and fear getting sued or something like that. Labour laws seem crazy in favour of employees. What is the process here?

Anyways, any help would be appreciated. Even if your help is just to tell me I'm an idiot. All feedback is welcome.
Some advice. When times are good and you pay your employees well, everyone is happy. If and when your business tanks and you run into cash flow issues, you might have to make some hard choices. My experience is that the average person will jump ship rather quickly despite all the good praises you've been hearing. Everybody looks out for themselves first and that's just a fact of life. Imagine having to tell someone you have to cut their pay or reduce their hours or whatever...they will change their tune immediately.

I don't know exactly what your business does but always look out on a macro level. Good times might not last. Small businesses are inherently unstable. You are one disruptive technology from failing. Never forget that.

The key to scaling up your business is to build "SYSTEMS". I'll take a chain restaurant as an example. When they first started, it's probably just a 1 man show. You have to create the recipe. You are doing most things yourself. What makes something scalable is "consistency" and "replicable". One thing that helps is to formalize procedures into Standard of Procedure documents. Like for burgers, you want to make sure every patty is roughly 200g, that every burger has roughly a handful of lettuce etc. You might want to document that each patty should be a certain thickness. And also document that each patty should be cooked exactly 5 minutes and 30 seconds or whatever. Invest in some timers so that employees can easily follow the procedure.

This is exactly how McDonalds succeeded. They broke down their business into procedures and made rigorous efforts to ensure standardization. Documenting things this way can often help you find efficiencies as well.

Another thing you can do as your business scales up is to promote someone into a manager. Once you have the SOPs set up, the manager's job is to teach new employees, and monitor their performance. Your role is to manage the manager. As a business scale up, it's harder for you to manage the ever increasing number of staff. That's why most organizations have hierarchies.

As for how to divvy up the tasks and how to train people and stuff...that's the magic of being organized. Write down what the tasks are and think through how much time/effort/skill is required to complete each. Write it down! It helps you to see the bigger picture and helps you better assess performance. To make your work scalable, consider what a change in business volume would do to these tasks. Like...some tasks take the same degree of skill/effort/time regardless of business volume. You are finding DRIVERS and analyzing them. When you understand and document them, you're more likely to divide up the tasks properly, and also assign them properly to begin with.

How to manage people...that deserves a whole book and I don't have the energy to write it. You just have to read people and find the right approach. It's a joy working with different people but it can also come with pains when people don't perform. That happens in any company. There's no magical interview set of questions that can weed out people. You really need to set expectations right and use the probation period to see how it goes.
[OP]
Newbie
Mar 13, 2023
3 posts
1 upvote
Ottawa, ON
You are all too kind. Thanks for the kind words and helpful advice!

- I've been establishing many systems since day one, but enforcing them is difficult. I'm making checklists now for critical tasks and will ensure they are followed. Hopefully it will help avoid short-cuts and missed steps. Thanks!
- Disconnecting/detaching is difficult. I imagine that is a big hurdle for many small business owners. But, it is something I take seriously and am working on. I'm changing to 6hr shifts to give myself time to hit the gym and/or do other personal stuff before I get home for dinner with the family. Doing the same for my staff, giving them the option between 6hr days or working 4 days a week. Seems to be some good research showing it doesn't reduce productivity much, but does raise employee satisfaction.

I appreciate the compliments regarding our success so far. I guess I don't really realize what is considered successful since I'm just kind of working away at it. I treat it like any other job. Feels like it is going ok. We're in business, we survived the pandemic shutdowns, we don't carry much debt, and we turn a modest profit. Nothing crazy, but it seems to be on the right track. Will continue to work hard to keep it up.
Newbie
Jun 19, 2011
94 posts
27 upvotes
SCARBOROUGH
There has been some good advice offered on procedural and administrative issues. I sense your business needs to get to the next phase of its evolution, structure. This is where the first phase (chaos) is almost at its end and issues such as you have identified are solvable. The basic issue of being able to survive is past (good). It seems you are heavily caught up in daily operations. There is no mention of future planning, such as succession planning which is often overlooked in small businesses until too late. The question as to whether or not to hire someone to manage to relieve you of daily pressures is a good one. I sense that business is profitable but not by a wide margin, so it may be impractical to add payroll at this point. In order to make this post as brief as possible, although you may not feel competent enough to hire good staff, you still need to make one great decision -- hire a consultant on a part-time basis. In a nutshell, he/she would evaluate your whole business, including its operations, performance management, management, training, vacation....etc... and provide you ongoing advice and direction. Don't be shy, try out a few...you should be able to get enough free time to enable you to make an informed selection of consultant.
Although great advice given by others, you're still on your own. If you would like something more on what I suggest, feel free to contact me. I am not promoting my services, but may be able to provide some assistance.

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