One of the most common
failings in small business is the ability for the owner to manage personnel;
especially when they are not performing satisfactorily, or when business changes
require someone to be let go. Compound that with personality conflicts, or the
owners inability to separate the stress in his own life from his management
responsibilities and it is no wonder why so many businesses fail. It is often
hard for either party to see past friendships to what is necessary for the
organization to survive. Having a third party to answer to removes this often
damaging dynamic and allows the organization to thrive, which is ultimately in
the best interest of all parties.
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Few small
business owners are really competent in this area for many reasons.
First, they typically just don't have the background, or the love of
numbers to do it well. Second, it is so easy to get caught up in the
microcosm of "we really need a new _____" and not see the macrocosm
of "Yes, we just received a large payment, but next month is
historically low for us".
Having to justify and budget for new expenditures as well as
demonstrate how income is being produced to a third party helps keep
things in perspective and ensure you and your employees a
consistently reliable source of income.
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