Is It Possible To Have Management Completely Run Your Business Successfully Without Your Input?
Absolutely. But, there are two questions that need to be addressed to determine if it’s a good idea and how to do it:
- What are your strengths?
- What are managements’ incentives?
YOUR STRENGTH
Are you better at envisioning and starting or executing and managing? If you’re the former, then, not only CAN you have management run your business, you SHOULD! It takes a wise and humble person to recognize when a business has outgrown them.
If a founder feels burned out, out of his league, or just that someone else can better manage the business for success, he can always remain an adviser and keep up on the business in some capacity.
MANAGEMENT INCENTIVES
People do what’s in their best interest. If you consider yourself a great manager, but you need to step back from a business for any reason, then you need to ensure that your interests align with management.
Obviously, the first step is choosing the right people to manage. Then, get them on the same page as you. The strongest way you can do this is by making them owners as well. You can also create long-term bonus plans or tie their base compensation to the business’ performance.
Being a solo, absentee owner is never a good idea. People will revert to laziness if left to their own devices… The short answer is this: If you want to relinquish control, be prepared to pay for it. You will either pay for it by giving people what they deserve or in the decline of your business. The people managing your business must be motivated to do a good job.
Your exit strategy should start with your business plan. If you want to learn more about how to plan a business, get a FREE copy of my Amazon #1 best-selling book here!