No doubt your business started with either an idea of a product or service that you could offer and setting up the business operations filled you with excitement for what was coming. As your business took off and grew you noticed that suddenly there was so much more involved than just providing that product or service and there are other responsibilities and roles you fill – we call these the 10 Hats of business, and every business has them!
When you are a sole owner, it likely feels that for each different task you complete you are putting on a different hat – when you are providing your service you may be wearing the ‘Operations Hat’ but then you need to put your ‘Sales Hat’ on for selling the product and the list goes on. So what are the 10 Hats and what do each of the roles mean?
What are the 10 Hats of business?
Shareholder – As the shareholder you finance the business and own it.
Director – In this role, you maximise the value for the shareholder.
Leadership – Is all about implementing the plan for the business.
Product/Service Development – an explanation isn’t really needed for this one but without a product or service there wouldn’t be a business and as time goes on you’ll need to review, amend and design new products and services.
Operations – This is actually doing the work which generates the income. It is the only role that is physically providing the service of the business to your customers.
Marketing – Is all about generating leads, we need to let others know what we provide and how we do it.
Sales – Once marketing gets customers to our door, we need to convert those prospects into customers.
Finance – To run a successful business, someone needs to manage the cash & keep the tax man happy. (This is where we come in)
HR – is responsible for enrolling and motivating the team – even if you don’t have a team yet, you still have to motivate yourself so there are always aspects of HR involved.
Admin/IT – Smooth administration processes and effective software will maximise your efficiency.
I can’t do all these roles by myself – Should I employ someone or outsource?
This is something only you can decide after considering your own business model but we can give you some tips on what to consider.
With all of these roles combined, if you are running your business by yourself you will be one very busy person – but there is no need to panic because once you understand what each of these roles mean for your business and how they work together, you’ll be able to identify where you need help and make a plan of action.
Now you may think that we are crazy for suggesting you create an organisation structure when you may be the only person carrying out all the roles but by being prepared in advance and setting out what functions of your business falls under which role in advance will help make it easier as you grow and expand – especially if that growth happens faster than you expected. It will also help you determine if the role should be outsourced or if you should take the leap and employ someone.
To help you decide where you need help, consider your own skill set, what skills do you lack whereby getting someone else involved would benefit you and streamline your processes.
Remember: if it isn’t a role that is in your skillset, you will take far longer to complete the tasks, think about how that time could be better spent doing the operations work and generating the income.
An example we like to use for this is that of our housework… I know it’s not business related but hear me out! You may think you can’t afford a cleaner because it is something you can do yourself – but outsourcing that for 2 hours a week will give you an extra 2 hours a week to be generating income that is likely going to be higher than the money you spend on paying the cleaner – and you get to come home to a happy, clean house!
Now convert that example into ways to help your business – if you spent less time on your Admin, Marketing & Finance roles because you have other people taking care of them – how much extra time in the week would you gain to carry out the Operations role and generating the income for the business.
If you are looking for recommendations for outsourcing some of your workload then check out Our Recommended Suppliers Blog
Tip: Determine the role and tasks before you determine the people!
You may be tempted to rush to bring someone on board before determining what their role will include, this can lead to time consuming and costly mistakes! If you decide you should hire someone – check out our previous blog: How do I go about hiring an employee?
What are the benefits of delegating some of the roles?
- Better time management – As already mentioned you can spend more time in operations and generating income.
- A team (made up of either employee’s or outsourced teams) of knowledgeable professionals that have skills beyond your own that you can learn from and grow with, taking your business to the next level.
- Less likely to lead to burnout – if we continuously try to take too much on it is more likely to lead to burnout which may even take you away from the business entirely for a period of time. (read our blog: The Importance of Rest)
- More time to spend doing what you love with who you love. Sharing some of the roles may mean you can take some time off to spend with your family or picking back up that hobby that you haven’t had time for recently!
Interested in knowing about how we can help with the finance function of your business? If so, pop over to our Get Started page, complete the quick questionnaire and book in a discovery call. We look forward to helping you delegate one of your many hats!