Secrets of successful business owners: building your team

Of the hundreds of business owners that I have met and worked with, there are a number of common traits that really make the most successful owners stand out. One of those is an ability to build a great team around them. This includes employees but in this article I wish to focus on the service professionals that provide additional external services to your business.

It is the nature of small business that the owner must be able to develop and implement strategies across a breathtaking array of disciplines. Everything from IT to sales, from database management to staff retention and from internet marketing to bookkeeping. It is reasonable to expect that one person be so diversely skilled? Is it even possible? Maybe there are a handful of truly gifted individuals who are capable, but for the rest of us mere mortals this is too much of an ask. From what we have seen, business owners are usually good at two or three key business functions.

As your business starts, grows and develops you will build a team of experts around you. Your ability to get the right people on your team is a task that is given very little attention - yet stories abound of wasted time, wasted money, opportunities lost or businesses put at risk from poor advice. I have seen all of these first-hand.

Business owners often don’t fully comprehend the power of having a great team, are afraid of the cost or simply assume that all providers are the same. They are not! For these reasons - and the fact that you will potentially have a relationship with this person for your business life and beyond - it is worth spending the time getting the right ones for you.

Value and cost

The cost of service professionals will form a component of your final decision. This is a difficult issue that must be addressed within the circumstances of your business. Your ultimate decision of who to choose must be based on value not price. Make sure that the net value to your business is maximised without killing your cash flow.

What is of value to your business will be based on your particular circumstances, so take time to consider this and be prepared to extensive questioning. If you select providers that specialise in small business then you will usually find the cost/service ratio will be right for you. The most expensive or cheapest are not usually the best!

Make sure you know what you are getting for you money. An example I recently heard was from an accountant that, although charged $350 per hour, saved $4000 in tax in an hour’s work.

Who do you need?

A good consultant (there is a free checklist for consultants here)
A proactive accountant and lawyer that really understand small business
Web designer that understands business, strategy and marketing - not just a geek that has great technical skills
A graphic designer that suits your style and understands your business
Business banker

How to go about it

When looking for a new service provider, treat the process like you are recruiting a new staff member. Be systematic about the process of selection and take your time to get the right one for you:

Determine what you want your service provider to deliver and write down a list of criteria. Make sure it addresses your specific needs. e.g. ‘knows small business’, ‘understands investment properties’, ‘in experienced in trusts’, ‘knows web-based CRM systems’ or ‘has experience in importing.’
Prepare interview questions.
Through your networks, establish a short list of potential providers
Interview each service provider using the same questions. If you can take a colleague or business partner this may also help.
Ask for referees from one or two of your most desired (and actually speak to them)
Think about and discuss all of the outcomes.
Make a final decision

Final words of caution:

Many business owners feel locked-in or obliged to stay with a service provider that they are not happy with. Don’t. You are paying with your hard-earned money for this service so you should get exactly what you want and need.
Watch out for pushy networking groups that obligate you to select a provider from the group. I have seen many cases of businesses that choose providers that are too expensive, not appropriate or don’t understand the client’s business. It is OK to include them in the shortlist but you need to go through the same process that you would with the other potential providers.

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