In our Expert Advice series, we are looking at recruitment and how it impacts growth and your chances of a successful sale. We often talk about a company’s ability to grow in terms of capacity and whether they have enough numbers of staff in key roles. But what sometimes gets forgotten is whether your company needs to increase its skill and knowledge base to cope with growth.
The Entrepreneur’s Journey
Building a foundation:
Many companies are founded by individuals who have a specific skill or expertise that can be turned into a product or service. Entrepreneurs often face a steep learning curve as they acquire the additional skills needed to build their businesses. Despite their growing skill set, they remain experts in the area that inspired the founding of the business.
Recognising the need:
As the business grows, it becomes clear that the founder cannot manage everything alone. They need support from others who have experience, skills, and knowledge in different aspects of running a business. This typically starts with hiring for finance, followed by roles in sales and administration. Eventually, the business reaches a point where it appears to have all the necessary functions and operates smoothly.
The shift to SME:
As small businesses grow, they often start by hiring people who have experience working for similar-sized companies. However, as the company expands, new challenges emerge when dealing with larger clients, such as increased regulation, complex logistics, and entering new markets. These challenges require new skills and experiences that may be beyond your current team’s capabilities. So, addressing this gap is crucial for sustainable growth.
The impact of great talent:
When recruiting for your business, especially in an SME, personality and team dynamics are critical. Hiring a highly skilled individual who believes they are superior to the team, regardless of their skills, provides little benefit. It’s important to have people who will collaborate well and complement your existing team.
Assessing this fit can be challenging during the hiring process and often becomes apparent only after they have been in the business for some time. However, initial insights can be gained from how candidates interact with your team during interviews.
Attracting the right candidates:
Finally, don’t underestimate your value as an employer, even if you are a small company. You might be looking for candidates with experience in larger companies, but many such individuals are interested in opportunities like yours. The appeal of making a significant impact in a growing business or the convenience of working closer to home can be substantial draws.
The reason you are looking to recruit them is because your business is growing. Many professionals are attracted to the idea of being an instrumental part of this growth.
Growth for exit:
In conclusion, recruiting the right skills and talents is not just about filling roles; it’s about ensuring your business can thrive as it grows. By carefully selecting individuals who bring both the necessary expertise and a collaborative spirit, you can position your company for sustained success.
Of course, having the right skill set in your business also adds significant potential value to your business when it comes time to sell. For many acquirers, the acquisition of skills and experience across a team represents a strategic reason for buying a business. Individuals can be recruited but experienced, effective teams are difficult to build and therefore of value to acquirers.
Growing a business is a complex journey, but you don’t have to do it alone. We’d love to discuss how we can support your business. Contact Entrepreneurs Hub for a free and confidential consultation.
