Small business owners run their business absentee for variety of reasons. Some owners are still holding full-time job while starting a business. Others have more locations than they can handle themselves. While still others just don’t want to spend their entire time on the business. Our estimate is that while majority of small businesses are owner operated, there are number of businesses that are run absentee for the reasons mentioned above.
While it is possible to run and succeed in absentee owner business you need to be aware of the problems that arise when you are doing so. Ignoring these problems can lead to deterioration and even disaster for your business. The most common issue in running the business absentee is that you may not be aware of what’s going on with your business or at least not to the same degree as when you are present 24×7. Even if you come to know about the issues it may be too late to act on. The issues can surface in all areas of the business ranging from operations, quality, purchasing and customer service.
You have to accept the fact that running the business absentee is not going to produce the same results as when it is run as owner operated. At very least, it will produce relatively lower sales and profit. However, there are steps you can take to ensure that it does not lead to disaster and eventual shutdown of the business. Below we have provided tips and techniques you can use to avoid this situation.
- Hire best employees and pay them extra. This is common sense. If you are not going to be present in your business 24×7; the next best thing to do is to ensure those who are present are of top notched quality. After all, they are the ones who will make or break your business. We have provided tips on how to hire best employees in earlier post. In addition to hiring best employees you need to keep them motivated so that they give their best all the time, just like you would. On the flip side you will have to pay extra money to them; but they are worth it.
- Keep a close eye on key performance indicators. It is essential that you identify and track key performance indicators of your business frequently. You also need to be prepared to take appropriate actions on a short notice based on unfavorable trends you might notice. In an earlier post, we showed the reports you should look at periodically to keep track of how the business is doing.
- Provide incentives to employees and make them accountable. When you are running the business yourself you are accountable for everything that is going on. While this is still true when you are running it absentee, you have to assign responsibility to your managers and employees and hold them accountable. At the same time, stay away from micro managing them. There is no way you will be able to manage it when you are not present and you will drive them crazy.
- Set proper expectation with yourself. Let’s face it! The business is not going to be run the same way when you are running absentee as it would in owner operated case. The managers and employees will not feel the same connection with the business as you would. You need to accept this fact and set proper expectations in terms of operations and financial returns.
It is possible to run and succeed in absentee business as long as you have set proper expectations and laid out appropriate processes and procedures.
Do you have experience in running absentee business? How have you succeeded?
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