Showing posts with label downstream. Show all posts
Showing posts with label downstream. Show all posts

Father's Days Communiqué Part I: Passing a Business Down to a Next Generation

Dear Sonny,

Here is what I can tell you about starting a recycling company from scratch.  Or really, starting anything from scratch.  It could probably apply to a doctor's office or a house painting company.

writing about digital waste handling
At the beginning, when you are the sole employee, you pretty much have to work on getting the clients, and not promising to do more than you are able to do.  At the beginning, you are earning a reputation, which will compound over the course of the next ten years of your business.  My first "motto" was "we are who we say we are and do what we said we'd do".

You will learn on your own that it's really difficult to do every job in your company.  You can try, and it's worth trying so that you know what it is.    But you will discover what Adam Smith observed, that every hour you take away from a task you are indispensible to, to do a task you can outsource, will stunt your business growth.

You will find that you are completely indispensible to about 20% of the hours, because those hours are key to 80% of your income.  Which hours those are will be different for a 2-person, or 4-person company, than they are to a 40-person company.