John Jantsch in a recent Duct Tape Marketing Blog entry made an interesting point about how lack of delegation can stifle the growth of a business. The gist of his point is that not all tasks in a business are of equal value and if you can hire or outsource less important tasks. You can then focus your time on the higher value tasks and thereby generate more income.
I have seen the truth of this a few times myself. Before I decided to open Market Accelerators, I considered buying a small business. I spent a few months interviewing business owners who were selling their companies. Many of these companies had stagnated and I was shocked to see how few of owners had taken vacation in recent memory! One guy I met had not taken vacation in almost 25 years and to be honest he looked like he was on his last legs. Most of these people would have difficulty selling their companies and it helped me to realize that I had a passion to help business people avoid this fate.
In most cases, the owners were doing too many low value activities. They were the business and as a result the business had become a prison. If they took a vacation, the business would have taken a vacation also. Frequently the problem was made worse by a lack of time spent on marketing. Properly applied marketing would have helped the company grow. They would have had more profits and could more easily have afforded to hire the necessary resources to delegate work more appropriately done by someone else.