How to Trust Your Team
How to Trust Your Team
How can entrepreneurs turn personal passions into commercial products?
As a child, I wasn't the best student; many entrepreneurs can probably relate. I was average, but I always had a desire to invent and create things. In fifth grade, a teacher noticed this about me and gifted me a book on creating things from everyday materials like paper and plastic. That experience was transformative.
The biggest challenge I faced in previous jobs was that I was always creating for someone else's vision, not my own. What motivates me now is the desire to create something uniquely mine that also helps others. For example, as a recent dog owner, I developed a new type of dog leash and harness while walking my dogs. This process reminded me of my childhood inventiveness and how to turn those ideas into commercial products. That long response encapsulates my journey from a young aspiring inventor to creating practical products today.
How can entrepreneurs effectively delegate to enhance productivity and innovation?
A major challenge for entrepreneurs, especially in the beginning, is learning to trust people to do their jobs without micromanaging them, which allows them to be innovative and productive.
As a business grows and you manage multiple companies, the challenge magnifies. You risk becoming a jack of all trades but a master of none. To overcome this, you must find ways to multiply your efforts, whether through hiring virtual assistants, partnering with individuals willing to share the risk, or wisely investing in people, processes, or technology. We've all wasted money in these areas, but learning from others who have succeeded can help minimize mistakes.
Leveraging tools like ChatGPT can significantly enhance efficiency across your businesses. The goal is to find effective ways to extend your capabilities through people, processes, or technology to improve overall efficiency.
What should be considered when choosing a business partner?
Entering business, whether alone or with a partner, is a significant decision. Going it alone is challenging, but partnering is akin to a marriage and requires careful consideration to ensure compatibility. I appreciate my first business partner for giving me the confidence to start, but in hindsight, it wasn't the right fit. My eagerness to launch led me to settle too quickly.
I came up with three key factors for evaluating partnerships.
First, both partners must be equally committed. If one person does more work, resentment will build.
Second, both must have the same financial investment. Otherwise, one will feel more invested, while the other may feel like an employee. If one person takes the risk and the other doesn’t, an imbalance forms—one pushing hard while the other coasts.
Finally, both must have a shared understanding of business. A baseline level of business acumen is required. For example, some people think everything is a write-off. It’s not. You’re still spending money—it’s an expense, not free cash. Understanding these fundamentals helps guide decision-making.
If you align on these three things—and, of course, get along—you have a solid foundation. The real issue is often the unseen factors beneath the surface that sink partnerships. Most entrepreneurs have at least one partnership that didn’t work out.
You need clear partnership rules. If these standards aren’t met, the partnership won’t work. It's better to recognize that upfront than to waste time and end up with a bad outcome.
Why should business owners educate their teams about financial goals?
At the lower levels, ground workers may not fully grasp financial concepts, but management is more likely to understand them. It involves reviewing numbers to explain growth plans, focusing on metrics like EBITDA, and outlining investment strategies. Clearly demonstrating that the only way to provide raises or bonuses is by achieving specific financial goals is crucial. There isn't extra money lying around; bonuses are earned through value creation. As an owner, showing the big picture helps employees see the connection between their efforts, company performance, and their personal rewards.
How can small business owners effectively show employee appreciation?
Actions speak louder than words. Small gestures, such as unexpected rewards like Christmas bonuses or movie tickets, especially in simple settings like a small restaurant, demonstrate that employers care about their employees' happiness. These small acts show employees that their employers are invested in their well-being, not just in words but through meaningful actions.
*This interview has been edited and condensed for clarity.*
