How To Create A Management Team

As your home business grows, you will know who you can rely on for what things and building a management team can be vital.  So before you dive into the deep-end-challenges of starting up your home business, read on to find out how to create a management team.

Firstly, a Non-Executive Director (NED) is a member of the Board of Directors who form part of the executive management team, but may not be an employee of the company.

how to manage people when you start up a new business

Working with an NED should strengthen your management team (remember to explore this in your SWOT Analysis), especially if they are an industry expert and you are not. It could be a good idea to make contact with possible NEDs at an early stage of your planning.

Think carefully about the essential skills you need yet don’t have and interview or select NEDs based on this list.

Consider someone with experience in the areas where you and your team are possibly weak. You could also look for a few people who will complement your business and use their skills and experience to reinforce your SWOTs.

You may want to offer them a Sweat Equity, which is a share (preferably small) in your business in return for their sweat … err, their help and advice.

Choose only those people who are better than you in whatever area you feel deficient and make sure you like them!

You need to have a clear understanding of what you want from them and what they can do for you, and then communicate this to them so both parties have full understanding of the agreement.

 

Learn to delegate. You can’t possibly do everything yourself. Find other specialists that can do certain things better than you.

 

You must also have clearly defined rules of engagement. What happens if they leave or you want them to leave? Lastly, on the subject of Non Executives, Jo believes that you should not mix up consultancy with NED roles.

Instead, have agreed director’s fees; a contract for services should you not get an NED involved in your business.

 Marianne Craig explains to Careershifters that when you start your own business it can be lonely and getting support is hugely important.

Being self-employed or setting up a new business can feel very isolating. Your local Business Link can help with networking events and relevant training opportunities. A business coach can work with you on developing and building your business too.

Some entrepreneurs also find it really useful to set up a group which meets regularly to focus on their coaching business. This group can be your own personal board of directors - also known as your personal council, mastermind group or success team.

This is how it works: you think of people you know who are successful or who have great contacts or who are expert in some area that is relevant to you.

For example: accountant, business owner, marketing person, journalist, website designer, business coach. Ideally you want people you know and like - and who are enthusiastic about your business idea!

Talk to each person individually about your business first to check out if they fancy being on your board.

Next, invite them all to meet up informally in a quite pub or cafe. Or if you like cooking, invite them to your house for a meal.

Explain to the group where you're at with your business plan and ask them for their ideas.

These are new and exciting times but reasearch is always vital.  Have a read through some of the many articles on starting up your home business, including how to name and host your home business website, how to set and acheive goals and many more in our How To section.

Award-winning entrepreneur of social networking site, iHubbub, and author of ‘Create A Successful Website’ and Pimp My Site, Paula Wynne is co-founder of iHubbub, a home business social community.

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