The way small business owners run their companies is as varied as the kinds of small businesses themselves. Small business owners can be deeply involved in the everyday operations of their businesses, or they can be, in effect, absentee managers. For a potential business owner, having an idea about how much involvement he or she is willing to commit to can narrow down the field of business options as well as help clarify expectations on the parts of both the owner and prospective employees.
Some useful questions to ask are:
- How much time am I willing to commit per day to this business?
- How much time am I willing to commit per week to this business?
- How involved do I want to be in minor decisions regarding this business?
- How involved do I want to be in major decisions regarding this business?
- How much do I trust others in running day-to-day operations of this company?
- How confident am I in the process of hiring employees?
Business owners who take a hands-off approach can expect a smaller profit than owners who are intensely involved in the everyday workings of the business. Absentee managers not only must hire more employees to make up for their missing labor, but they typically have a comparatively high rate employee turnover and internal theft, as well. For the turnkey business owner who is only interested in supplementing his or her income without committing to serious day to day involvement, this may be acceptable.
