One of the most difficult moments for entrepreneurs can be the point when they realize that they can no longer effectively manage the companies they created. This is not an unusual event, but it is most often met with complete denial.
The StartupJournal has an article that shows the struggles that one entrepreneur faced when he owned up to his limitations related to his growing company.
“Mr. Reeve wants to remove himself from all aspects of management and become the company’s chief designer and inventor. This transition is proving easier said than done. The company needs to find a strong manufacturing manager with the ability to satisfy the founder, maintain quality and build profitability. Two managers who were hired in the past three years weren’t up to the task.
Both Mr. Reeve and his wife, Anne, who co-founded and helps run the company, agree something needs to happen quickly. Mr. Reeve is burned out from doing work he doesn’t enjoy.”
There are the lessons that the author of this article, Perri Capell, arrived at from interviewing this entrepreneur:
-Entrepreneurs can be a mismatch for a mature business.
-Management skill cannot always be learned.
-Hiring a successor can be a very difficult task.
Although all of these can be true in many cases, my experience is that if dealt with early enough, many of these challenges can be avoided. I have seen many entrepreneurs make such a transition successfully. It is not easy and the entrepreneur will need to commit to a long term plan not only for the business, but for him or herself. I stress to entrepreneurs that they need to understand that it is not just their businesses in transition, but they need to transition, as well.
One of the best books I have even read on this topic is Growing Pains. It was my Bible during this transition period in our business. The good news for young entrepreneurs is that many are learning about managing growth in their formal education on entrepreneurship. The rest of us old dogs will need to try to learn this on the fly.
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