A manager is an individual that is responsible for leading a team toward a common goal or objective. This person takes direction from leadership and puts it into action. Basically, a manager takes the owner’s mandate and mission and implements it within the team. When your team is small, you can manage it yourself. However, when you start growing, managing can take over your entire day. When you reach a point where you can’t do it yourself, it’s time to hire a manager.
How do you know when this is happening? It’s important to note that the specifics of every business are different- but there are several signs that tell you when it’s time to hire someone.
However, before you hire someone, you need to make sure your financials can accommodate paying someone else. Let Nolan Accounting help with the financial aspects of your Southeast Wisconsin business. We specialize in daily accounting and bookkeeping tasks, as well as payroll and tax prep.
3 Signs You Need to Hire a Manager
While it’s true that every business is different, there are three basic indicators that you need to hire a manager:
Your team is growing
Growth is one of the most obvious signs you need to hire a manager. When your business is growing, you’ll reach a point you need extra help. When you hire new people, you’ll have to ask yourself if you can manage them on your own. After all, if you don’t stay on top of your projects and you don’t keep your team motivated, engaged, and productive, mistakes will start to happen. While you may think you can do it on your own, it’s important to note that one person can only effectively handle so many employees.
The span of control varies from one person to another. On average, direct reports for Fortune 500 CEOs is 7.44. However, some have 20+ while others have less than 5. The number itself is not important. The important thing is whether or not you are getting what you need out of what you do have.
Your days are getting longer
As your business grows, you may find yourself fighting fires all day long or you may be overwhelmed by all of the little decisions that need to be made throughout the day. One thing is clear, the list of things that are required of you are growing and you need to bring in at least one manager, if not more, to alleviate the load.
Your business development slows
If your goal is to scale up your small business to a medium and ultimately large-sized business, a manager or even a management team, will be part of this process. After all, as the owner, it is your responsibility to come up with ideas for growth. If you’re tied up with managing your team, you don’t have time to spend on coming up with ideas to move forward.
Do You Need to Hire a Manager?
If you find that your team is growing, your days are getting longer or more complicated, and your development is slowing, it may be time to hire a manager. However, before you make that decision, it’s important to analyze your budget and make sure you can afford it. Contact Nolan Accounting to look over the financial health of your Southeast Wisconsin business.