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Leading a startup is not easy. With a smaller workforce, you may be responsible for increasing sales, keeping your operations running, complying with regulations, and many other responsibilities. And when things go wrong, customers and employees are often the ones customers and employees turn to for help. While a company is rewarding to own, it can sometimes be difficult to take on the leadership and carry so many roles.
Fortunately, outside help can take a significant load off your shoulders. A new leader might identify potential opportunities that you are missing out on or areas where you could improve your business operations. Most importantly, it allows you to step away from day-to-day business and focus on broader ideas that will make your business grow.
Here are some signs that it’s time to bring external leadership into your organization.
1. You plan to expand the business
Most companies have different growth goals. Perhaps you want to open a new office in another city or introduce a new line of products or services that will benefit your customers.
With growth comes the potential for higher sales, but it also means higher risk. You’ll likely need to invest some money up front to support the expansion, which may require taking on debt or drawing on your savings. Your workload will also increase, so you may need to work longer hours to make your endeavor a success.
To pave the way forward, it’s often best to hire a qualified executive who can help you expand your business. New leaders can take charge of your existing operations while you focus on your growth—or vice versa. You have someone to turn to for help instead of getting too overwhelmed.
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2. You open up a new market
Are you planning to market your products or services to a new customer group? Then you could benefit from the expertise of a marketing manager who is familiar with your target group.
Opening your business to a new market is similar to business expansion; There is potential for revenue growth and opportunity. However, you probably need to change your marketing techniques. Finally, your current advertising strategies are unlikely to work with an audience with different purchasing behaviors and demographics.
A new marketing director can help you fine-tune and tailor your advertising strategies to your audience. They can also provide strategic insight into your current marketing plan and reinvigorate it.
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3. Your existing employees take on multiple roles
Startups often have a few key employees who have been with the company since its inception. As a result, founders value and trust these employees and turn to them whenever they need help—even when the responsibilities fall outside of their routine duties.
While it’s something to be proud of, when you have an employee you can rely on, you may be giving them work that someone else could do better. For example, you may have an office manager with a diverse background in finance, marketing, and operations. While these traits may have supported your initial growth, continuing to thin your team can lead to burnout.
Additionally, an office manager is unlikely to have any special training in finance or marketing, and continuing to rely on them in these areas will only hinder your growth. You may find that you get better results by hiring someone who is an expert in a particular field – especially if you are planning significant changes for your business in the future.
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4. Company growth is stagnating
At a certain point, you may find that you’re not getting the same significant results as you were in your first few years of business. This is a sign that your organization has entered maturity.
The maturity stage is something that startup owners strive for. However, once they reach maturity, revenue growth can often slow down.
The good news is that you’ve built a solid platform for future growth, but you may need some strategic insights to make that happen. Hiring a new executive who can work with you and articulate a vision of how to take your business beyond current milestones can be a step in the right direction.
5. A valued team member leaves the company
Has your current COO decided it’s time to retire? Does a Trusted Sales Leader Start His Own Business? If so, you need to hire someone to replace them – and fast.
While executive turnover can be problematic for startups, it’s a natural part of growth. Nothing is permanent, and your senior team members will eventually leave – just as you will if you decide to leave the company.
It’s not easy when a key team member leaves, but it can be the start of a new beginning. Hiring a new manager gives you a fresh look at areas that probably no one but you and your previous employee has seen in years. Their unique perspective can breathe new life into your brand and workflow in ways you didn’t even know you needed.
If your former team member held significant responsibilities at your company, you want to replace them with someone of equal skill who will bring new talent to your company. Take the opportunity to find someone with current skills who can reinvigorate your business.
New leadership can be scary, but it’s also good for your business
It can be difficult to hand over the reins of essential responsibility to someone with whom you are not familiar. After all, your business probably means as much to you as your family does – you’ve hit several milestones and achieved more than you could ever hope for. It’s only natural to want to make sure it’s in good hands.
However, if you maintain a positive attitude and seek a qualified leader who can add value to your organization, you will reap significant benefits. Hiring new leaders may be all it takes to fuel your company’s future growth.
