I saw a presentation today that reminded me of a classic entrepreneur’s dilemma.

The single mindedness brought to the table by a company founder is the driving force behind the early success of a new venture. Then building a small team of trusted compatriots provides the complimentary fuel to achieve hyper growth over the next several years.

Up till this point, profits and personal income have risen with sales, although not quite as fast.

Then, something unexpected happens – profits drop or disappear altogether. Even if sales continue to flow.

Why?

It’s a lack of controls, process, and “professional” management. A founder at this stage will either retrench or put their head down and drive forward in the belief that more sales will fix everything.

In fact, more sales will only make things worse.

This is the moment of truth for the founder(s). Will they allow themselves to come to the realization that they need to stick to what they do best while hiring professional management – even if it turns out one of these new managers becomes their boss?

If you’re lucky, your business will reach this point if it hasn’t already.

Posted by: Steve Banis