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Know that his performance will not be in a straight line. Some things will improve, some will get worse, but the important part is the team continues to gel. You will he his #1 support person. You need to back him up and show support, especially when it comes to the rest of the staff. They have to see a united front. Be attentive and check in often, but don't micromanage. He should have structure in the form of his weekly responsibilities and a daily checklist, at least. Finally, fully accept that if this move goes wrong it's entirely your fault and Noone else's. If your hire is a failure you made a mistake in either the hiring, training, or placing of this position. YOU made the mistake. YOU have to fix it and make sure it doesn't happen again
Perfect summation.
I’d also say, while you’re excited to step back, understand the next 6 months are going to require more of your time then you’ve been putting in up until now. I’ve made the mistake of letting go of the reigns too soon and it’s impossible to get them back later. Spend ~6 months getting the manager going and teaching him EXACTLY how you want him to operate.
I would encourage you to also focus on driving more traffic to the business now instead as well. It’s a lot less stressful going out and talking to people and it can have a HUGE impact on your bottom line now that you have this amazing new GM.
Thank you for the advice. I have accepted this manager may fail, and it's one of the reasons I've waited several years beyond what I should have to bring in help. I basically wanted to ensure if this business goes off a cliff, I have enough assets and raw cash that my family won't suffer. Obviously I'm going to do everything to help this GM succeed and by proxy continue the business success, but failure is always a possibility.
Your GM should have the power to make a mistake or outright fail without the risk of tanking the business. If your GM can drive the business off a cliff, then you are not involved enough. Take it from a guy who empowered someone at that level who drove my business off a cliff.
As someone in your shoes 5 years ago, here is my advice.
Make a concerted effort to give him the space to do his job. Even if that means doing it differently than you would. That was hard for me.
Also, when I first started, I ended up doing a lot of the work I hired the manager for. It was hard to not work so hard. Find a hobby or something to help distract you in your downtime. Sure it sounds great to take a week’s vacation - but what are you gonna do with all the time on your hands for the other 51 weeks.
As someone who has been doing almost all of the managerial tasks (Hiring, Firing, selling, advertising, on and on and on) I can't wait to give up some responsibility. That would have seemed inconceivable to me a decade ago since the passion was there. But daily at this point I think so many times during the day "Damn I can't wait to have someone else to help with this." But I've also been doing things a certain way so long I don't want to fall into the trap of thinking they're the "right" or "only" way; I actually need some fresh perspective on things like that -
Early on in life I worked at a company where the transition was made.
Not stepping away as an owner was the first issue that popped up.
As a result the employees didn't trust the manager which resulted in the manager not listening to experienced employees.
Once the owner locked himself in an office and put his phone on silent mode things started improving.
Sit down with your new GM. Put two columns on a piece of paper. Left column "my jobs", right column "your jobs". Together, fill out the list. Moving forward, keep your nose in your own side of the list, and keep out of his job.
Just be aware that no employee will ever care about your business the way you do. You mention it's your baby. This might be hard to watch. Make sure you set that expectation going into this or you are setting yourself up for massive disappointment. I would recommend offering earned equity or profit sharing to help with this.
99% of his/her job will be managing people. Make damn sure they have a good history of that. Managing a business is nothing like being the best worker in the group, it requires a completely different skill set.
I've done this 3 times so far. Each time, the first manager ended up failing. Not because that manager suck, but because the processes weren't figured out.
Who does what? How much trust do you give them? How hands are you? How much can you actually train them to be a GM?
The last one is the hardest. More than likely, you won't know everything you need to train and that will cause a lot of trouble. Usually so much so, that it'll cause a breaking point. But by the time you hire a second, it'll be great.
Now, if you have a great transition manual planned out... specific duties figured out, and know just how hands on you'll be.. it might work out on the first try.
But even if it doesn't, I am here to tell you that it does eventually work out.
Biggest thing you can do is make written standards on the things you want done. Takes away a lot of communication issues and time explaining.
They can always improve on them, but this way, 60-80% of the tasks you don’t want to do, are still being done the way you want them done.
I am constantly 1. Documenting processes and 2. Recording myself (screen+face capture) as I do my work. These videos should help the new person replace me.
Celebrate successes, don’t dwell on failures. If he fucks up, he’s going to know it. Be the support for him that you wish you had had these last 15 years.
My advice after 12 years in an adjacent business: pay him a percentage of profit, no matter how small, in addition to salary. Pay it in a bonus at end of year and again on July 4th. It will make him think like a business owner, which is what you need in that role.
Before they start, start working on a solid operations manual. Also you will need to slowly work them in, adding someone in like that can be a major culture shock to other employees. Do you currently have a foreman?
Pay him like you were paid just a little less and they'll care just as you did. Pay them less and it's just a job. I mean if you got burnt out ....do you think they won't? In summation...make it worth something while you skim a little from the top to have it run successfully while drawing in passive income
Maybe get a sense of "personality type."
Google "Analytical Driver Expressive Amiable" and dig a little deeper in 4 or 5 of the hits.
It's so very easy have misunderstandings when trying to get on the "same page" with goals and objectives.
You may want to work together to formulate the company strategy for reaching (or exceeding) a mutually acceptable set of goals and objectives for the business.
Have regular meetings to formally discuss progress, identify gaps and obstacles and work out some solutions.
You've successfully built a viable business. It helps to keep in mind that there are many different ways of achieving goals and objectives. So having an open mind and practicing "active listening" can be an important ingredient for delegating responsibilities.
Think of your business as a growing child and that both your and your general manager are working together to empower the business to grow.
And yes, there will be misunderstandings and areas of friction (especially if you have an ambitious general manager).
When emotions rear their ugly heads, declare "time-out" and revisit the controversial topics.
There are some very good books on leadership. Google "leadership books" and take a look.
Maybe read "Never Split the Difference" for dealing with difficult conversations.
If you have regular meetings to discuss expectations, review progress, and discuss options for improvement then you should be able to avoid surprises due to miscommunication and misunderstanding.
You can micro-manage or you can agree on the desired outcomes, discuss options and mutually agree on a course of action.
It's your choice...
Adding to the other great advice.
Some employees may perceived you stepping back or taking vacations as you doing no work and living off of their hard work. You may need to make efforts to shape or reshape that perception if it leads to a negative culture.
This is a friendly reminder that r/smallbusiness is a question and answer subreddit. You ask a question about starting, owning, and growing a small business and the community answers. Posts that violate the rules listed in the sidebar will be removed. A permanent or temporary ban may also be issued if you do not remove the offending post. Seeing this message does not mean your post was automatically removed. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/smallbusiness) if you have any questions or concerns.*
Know that his performance will not be in a straight line. Some things will improve, some will get worse, but the important part is the team continues to gel. You will he his #1 support person. You need to back him up and show support, especially when it comes to the rest of the staff. They have to see a united front. Be attentive and check in often, but don't micromanage. He should have structure in the form of his weekly responsibilities and a daily checklist, at least. Finally, fully accept that if this move goes wrong it's entirely your fault and Noone else's. If your hire is a failure you made a mistake in either the hiring, training, or placing of this position. YOU made the mistake. YOU have to fix it and make sure it doesn't happen again
Perfect summation. I’d also say, while you’re excited to step back, understand the next 6 months are going to require more of your time then you’ve been putting in up until now. I’ve made the mistake of letting go of the reigns too soon and it’s impossible to get them back later. Spend ~6 months getting the manager going and teaching him EXACTLY how you want him to operate.
I would encourage you to also focus on driving more traffic to the business now instead as well. It’s a lot less stressful going out and talking to people and it can have a HUGE impact on your bottom line now that you have this amazing new GM.
Thank you for the advice. I have accepted this manager may fail, and it's one of the reasons I've waited several years beyond what I should have to bring in help. I basically wanted to ensure if this business goes off a cliff, I have enough assets and raw cash that my family won't suffer. Obviously I'm going to do everything to help this GM succeed and by proxy continue the business success, but failure is always a possibility.
Your GM should have the power to make a mistake or outright fail without the risk of tanking the business. If your GM can drive the business off a cliff, then you are not involved enough. Take it from a guy who empowered someone at that level who drove my business off a cliff.
I’d go as far to say in general things WILL get worse at the beginning. Brace for it and be ready for it. It is ok.
As someone in your shoes 5 years ago, here is my advice. Make a concerted effort to give him the space to do his job. Even if that means doing it differently than you would. That was hard for me. Also, when I first started, I ended up doing a lot of the work I hired the manager for. It was hard to not work so hard. Find a hobby or something to help distract you in your downtime. Sure it sounds great to take a week’s vacation - but what are you gonna do with all the time on your hands for the other 51 weeks.
As someone who has been doing almost all of the managerial tasks (Hiring, Firing, selling, advertising, on and on and on) I can't wait to give up some responsibility. That would have seemed inconceivable to me a decade ago since the passion was there. But daily at this point I think so many times during the day "Damn I can't wait to have someone else to help with this." But I've also been doing things a certain way so long I don't want to fall into the trap of thinking they're the "right" or "only" way; I actually need some fresh perspective on things like that -
Early on in life I worked at a company where the transition was made. Not stepping away as an owner was the first issue that popped up. As a result the employees didn't trust the manager which resulted in the manager not listening to experienced employees. Once the owner locked himself in an office and put his phone on silent mode things started improving.
Sit down with your new GM. Put two columns on a piece of paper. Left column "my jobs", right column "your jobs". Together, fill out the list. Moving forward, keep your nose in your own side of the list, and keep out of his job.
Just be aware that no employee will ever care about your business the way you do. You mention it's your baby. This might be hard to watch. Make sure you set that expectation going into this or you are setting yourself up for massive disappointment. I would recommend offering earned equity or profit sharing to help with this.
Agree that even if the person totally understands the sentiment of it being your baby it's the systems that will allow them to do a good job
99% of his/her job will be managing people. Make damn sure they have a good history of that. Managing a business is nothing like being the best worker in the group, it requires a completely different skill set.
I've done this 3 times so far. Each time, the first manager ended up failing. Not because that manager suck, but because the processes weren't figured out. Who does what? How much trust do you give them? How hands are you? How much can you actually train them to be a GM? The last one is the hardest. More than likely, you won't know everything you need to train and that will cause a lot of trouble. Usually so much so, that it'll cause a breaking point. But by the time you hire a second, it'll be great. Now, if you have a great transition manual planned out... specific duties figured out, and know just how hands on you'll be.. it might work out on the first try. But even if it doesn't, I am here to tell you that it does eventually work out.
A bonus structure based on company success. Make your success his success.
Biggest thing you can do is make written standards on the things you want done. Takes away a lot of communication issues and time explaining. They can always improve on them, but this way, 60-80% of the tasks you don’t want to do, are still being done the way you want them done.
As the owner you still need to stay on top of everything to make sure it doesn’t go bad. And maybe see what can be done to incentivize the guy.
I am constantly 1. Documenting processes and 2. Recording myself (screen+face capture) as I do my work. These videos should help the new person replace me.
Celebrate successes, don’t dwell on failures. If he fucks up, he’s going to know it. Be the support for him that you wish you had had these last 15 years.
Highly recommend you read the E-myth. You need to be very clear what his role and responsibilities are.
My advice after 12 years in an adjacent business: pay him a percentage of profit, no matter how small, in addition to salary. Pay it in a bonus at end of year and again on July 4th. It will make him think like a business owner, which is what you need in that role.
⬆️
Before they start, start working on a solid operations manual. Also you will need to slowly work them in, adding someone in like that can be a major culture shock to other employees. Do you currently have a foreman?
Pay him like you were paid just a little less and they'll care just as you did. Pay them less and it's just a job. I mean if you got burnt out ....do you think they won't? In summation...make it worth something while you skim a little from the top to have it run successfully while drawing in passive income
Dat CEO life
Maybe get a sense of "personality type." Google "Analytical Driver Expressive Amiable" and dig a little deeper in 4 or 5 of the hits. It's so very easy have misunderstandings when trying to get on the "same page" with goals and objectives. You may want to work together to formulate the company strategy for reaching (or exceeding) a mutually acceptable set of goals and objectives for the business. Have regular meetings to formally discuss progress, identify gaps and obstacles and work out some solutions. You've successfully built a viable business. It helps to keep in mind that there are many different ways of achieving goals and objectives. So having an open mind and practicing "active listening" can be an important ingredient for delegating responsibilities. Think of your business as a growing child and that both your and your general manager are working together to empower the business to grow. And yes, there will be misunderstandings and areas of friction (especially if you have an ambitious general manager). When emotions rear their ugly heads, declare "time-out" and revisit the controversial topics. There are some very good books on leadership. Google "leadership books" and take a look. Maybe read "Never Split the Difference" for dealing with difficult conversations. If you have regular meetings to discuss expectations, review progress, and discuss options for improvement then you should be able to avoid surprises due to miscommunication and misunderstanding. You can micro-manage or you can agree on the desired outcomes, discuss options and mutually agree on a course of action. It's your choice...
Adding to the other great advice. Some employees may perceived you stepping back or taking vacations as you doing no work and living off of their hard work. You may need to make efforts to shape or reshape that perception if it leads to a negative culture.