Business Baron

The founder is a single point of failure

Small business owner burnout is structural, not a character flaw. Ask what happens if you stop for a fortnight, then stop being the single point of failure.

, Running a business

A man who had run a building firm for eleven years came off a ladder in March and broke his wrist. Nothing serious. Six weeks in a cast.

In those six weeks the firm did not quote a single job, because he did the quoting. Two customers went elsewhere because nobody returned their calls, since the mobile number on the van was his. The VAT return was late. One of the two employees left, because for a month nobody told him what to do in the mornings.

The wrist healed. The firm took about a year to get back to where it had been.

Hours are an input, not an achievement

There is a persistent idea in British small business that long hours are evidence of commitment, and that a founder who works sixty hours is more serious than one who works forty.

Hours are a cost. They are the cheapest resource you have and therefore the one you spend most freely, and for the first year or two that is often correct, because you have more time than money. The trouble is that it does not have a natural end. Nothing in the business ever says you have done enough today. The work expands, the phone keeps going, and the quiet evening you were going to take gets used for the paperwork you did not get to.

What that produces, two or three years in, is not usually collapse. It is a slow decline in judgement. Decisions get made to end a conversation rather than to be right. Quotes get priced to get them out rather than to be accurate. The thing you have been meaning to fix for eight months stays unfixed because fixing it requires a clear afternoon and there are no clear afternoons.

Exhaustion is expensive before it is dramatic.

Ask what happens if you stop for a fortnight

The useful diagnostic is not how you feel. It is a structural question with a factual answer.

If you were unavailable for two weeks, starting tomorrow, with no warning, what would stop? Not what would be difficult. What would actually stop.

Write the list. For most owner-managers it includes some combination of quoting, ordering, invoicing, paying suppliers, authorising anything, answering the main phone number, knowing what the priorities are, holding the customer relationships, and knowing where things are. That list is not a description of your work ethic. It is a list of single points of failure, and each one is a risk to the value of the thing you have spent years building.

This also matters if you ever intend to sell. A buyer is buying future profits without you in them. A business where the owner is the operating system is worth substantially less than one with the same profits and a manager, because the buyer has to replace you and knows the customers came for you.

Write down the things only you know

The cheapest fix is not delegation. It is documentation, because you cannot hand over what only exists in your head.

Spend an hour a week for two months writing down how things actually work. Not a manual. A list of the recurring things and how they get done: how a quote is priced, which supplier is used for what and on what terms, when the returns are due, what the passwords are and where they live, what happens when a particular customer rings, which jobs take priority when two clash.

It is dull and it feels like a waste of a working hour. It is the highest return hour in the business, because it converts your knowledge into the firm's knowledge. Three specific things are worth doing first, because they are the ones that hurt fastest when you are absent: the payment run, the ordering, and whatever your customers ring about.

Then hand one of them over, properly, to somebody else. Properly means they do it, not that they help you do it, and that you accept it being done worse than you do it for a while. Most owners fail here rather than at the writing stage, because taking it back is easier than watching it be done at 80%.

Take the holiday on purpose, in the quiet month

Every business has a quiet period and every owner knows exactly when theirs is. Book a week in it, months ahead, and tell customers and staff in advance.

Booking it in advance is what makes it happen, because a holiday you intend to take when things calm down will never be taken. Things do not calm down. There is always a reason, and the reason is always genuine.

A week away also functions as a test of everything above. It shows you what breaks, cheaply and on a date you chose, rather than in March with a broken wrist. Whatever went wrong while you were away is your list for the autumn.

Two smaller habits are worth more than they look. Have a number that is not your mobile for the business, so that the business can be closed even when you are at home. And take one full day a week off, consistently, which is the one thing that separates the owner-managers who are still doing this at sixty from the ones who sold up exhausted at forty-five.

If you are past the point where a week helps, that is a medical matter and not a management one. Your GP is the right call, and the fact that the business needs you is precisely the argument for going.

Where this shows up in the game

The founder in Business Baron is a person with a life, a level of health and a finite amount of attention, not a cursor. Work them hard enough for long enough and their capacity falls, their decisions get worse and the business feels it. Hiring a manager, writing procedures and taking time off are things you spend money and months on, and they are the difference between a company that can survive its owner being ill and one that is really just a person with a van.

Read next