Insight
Small businesses grow by delegating and finding the right kind of partners
Business First of Columbus - October 20, 2006
by Judy Huang
For Business First
As entrepreneurs, we are used to doing it all ourselves. It is often easier to take care of things ourselves rather than training someone else.
It is frustrating to manage and train employees, and then if they don't work out, it is a waste of time. In order to have a business grow beyond the capacity of yourself, you need to delegate and find ways to create partnerships. While one involves how your business functions internally and the other is about reaching outside of your business, both can result in growth and smoother operations overall.
When it comes to delegating, there is a great book call "The Emyth: Why Most Small Businesses Don't Work and What to Do About It " that explains how a company can fail if there is no assigned responsibility for everyone in the company. Each business needs to implement an overall system that trains employees and manages the duties of staff members and yourself.
I suggest writing it down.
It is uncommon to find a written system or manual in a small-business office because that information is often all in the owner's head. Unless the owner is present, it is hard to proceed with the task of doing business since there is no one else that has all the answers.
Again, in order to grow, you need to train and delegate and have it written down so that any new person can reference to the manual and find out what policies and procedures he or she needs to follow.
This should cover, for example, how to answer the phone, handle accounts payable, lock up the office, pick up messages and answer a request for product samples. By doing so, you prevent failure, help yourself and create accountability when things go wrong or rules aren't followed.
A company manual need not be elaborate. Make it a simple document with bullet points spelling out steps and expectations. Remember, the manual has to be accepted and understood by everyone. Additionally, the manual can be altered or improved upon as needed. You will find that the person performing a certain task may come up with a better way to do it or find alternatives.
The manual is a living document, and that helps gives employees' autonomy and responsibility over their own tasks and environments. As business owners, we all need to have the respect and trust in our colleagues since you are only as good as the people you hire.
Finding partners
As an Asian woman, I have decided to register my company to have the Minority Business Enterprise status so that we can pursue other avenues of business opportunity. As a minority enterprise, the company is able to market to city, state and federal governments.
Working with the government and larger companies.
Each government has various levels of procuring products - Web sites, centralized purchasing departments and direct marketing to the members within the agency. It is a diverse maze that is difficult to maneuver.
To educate yourself on selling to the government, attend a seminar at Procurement Technical Assistance Center through the Ohio Department of Development at its Web site, odod.state.oh.us/DMBA/ptac.htm. You can also learn whether your small business can sell to the government.
I encourage any company that wants to pursue this type of business to attend the seminars and understand the whole picture. There are many nuances, such as does your product or service fit, do you have the proper available inventory, do you have any certification that will give you some advantage, who do you contact, how do you fill out the bid paperwork and when to turn it in and whether you can change the price once you have bid.
Minority business enterprise status can help you open the door to working with Fortune 500 companies, of which many have diversity departments. For example, Dublin-based Cardinal Health Inc. has such a program.
Kathy Benn, vice president of supplier diversity, is the head of Cardinal's small-business initiative. She holds a seminar to introduce the purchasing department to the minority companies. There are also educational seminars to help minority companies understand how the various departments operate and a mentorship program where Cardinal helps smaller business become more qualified to fulfill the needs of a large multinational company.
The minority status does not guarantee work, but it can get your foot in the door. Then the rest is to understand the strategy and the value proposition of the company and then to sell, deliver and improve your business to reflect the needs of the client.
Judy Huang is owner of Columbus-based 889 Global Solutions. jhuang@889globalsolutions.com
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