Although many small businesses can be quite large as defined by the number of employees (usually 500 or less in the U.S.) or by a combination of employees and gross sales in other countries, they may still be owned and operated by one individual or perhaps, a family or a few owners. And, of course, many small businesses have an owner and only a few employees.
Regardless of the size, the owner or owners cannot be expected to be at the business at all times. Many small businesses have owners who rarely show up and delegate operational responsibilities to a chief operating officer or general manager. Other owners work full-time in their businesses but certainly cannot be expected to be at the business from when it opens until it closes. With this being the case, the relevant question is, “How does a small business with a limited number of employees operate when the owner is absent?”
It’s All About Management
Some small business owners view their businesses as investments rather than occupations and may have another full-time job or be retired. Other small business owners work full-time in their businesses. They must leave periodically during the day or be away for training, attend conferences or markets, or even take much-needed vacations.
For whatever reason, when an owner is absent, there is often a problem of absentee ownership. How does the business operations when the owner is absent, and who is to take over during these times? Is managerial talent available? With a limited number of experienced or inexperienced employees, full-time or part-time employees, small businesses are forced to rely on a group of employees to run the operation efficiently. Some businesses operate in these situations without any problems. Others, however, fall miserably short during these times.
Training Is A Must
The answer, of course, to the dilemma of absentee ownership is trained and efficient management. Some employees will act as responsible as the owner when the owner is absent; others will fall short of the mark. Employees without management experience cannot be expected to temporarily step in for an owner and manage the business with the same efficiency. So often, it is not for lack of desire but more due to a lack of training.
With limited employees, frequently, the “manager” in charge is whoever has the most seniority on that particular hour or day when the owner is out. In their defense, they certainly might not have had any training on how to manage employees. They are put into the position of temporary management by default. Perhaps, they might be given the authority to make simple decisions and direct other employees on what to do. At other times, they may be given the responsibility to manage but not the accompanying authority actually to manage. The business then runs in a haphazard, inefficient manner during the owner’s absence. This can be detrimental to the business, even for a short period.
Management training is essential for small businesses with an owner and a few employees, just as it is necessary for larger businesses. Employees cannot be expected to manage without proper training effectively. In a small business, this might be simply an owner mentoring a senior employee as a manager designee when the owner is absent and allowing the employee to step into a temporary management role, so the business can continue to operate efficiently as if the owner was present.
Does It Matter?
Some owners might ask, “Does it matter if I have a good manager while I’m gone for only a short period?” The owner does not realize with this scenario the negative effect a poorly run business can have on customers. Maybe, an employee is discourteous to a customer in person, on the phone, or a host of other things that can ruin a buying experience for a customer. This short-term lack of strong management can affect the satisfaction or dissatisfaction level of customers toward the business. Just one misstep might be enough for a customer or prospect to decide not to return, and the owner never knows why. This situation can be greatly magnified when the owner is absent for a long time or is completely absent.
Absentee Ownership Can Work
Absentee ownership can certainly work in a small business and always does. The key is to have a strong manager during the owner’s absence. This is more than having any employee designated as the manager for a couple of hours or days. Small business owners’ task is mentoring talented employees, so they can assume a managerial role immediately when needed. Owners never know when they will suddenly be called away from the business. Absentee ownership, strong management, and customer satisfaction are all related. Don’t let absentee ownership run customers to your competitors. Make absentee ownership work for you in the right way.
