One of the best mantras in operating a successful business is to surround yourself with talent. That allows you to do what you do best while everyone else takes care of the rest. If you are salesman, then you should be making sales calls, not paying the bills, answering the phones, copying proposals or marketing. If you are a software programmer, then you should be programming and not managing the business, marketing, doing the accounting or the legal work. The one issue that most have with this is struggling with giving up control.
The fear is that the job will not get done correctly or worse yet, the person that is given control will take advantage of their power. Whitehall, Michigan’s Viking Tool & Engineering, Inc. recently experienced a secretary embezzling tens of thousands of dollars over a number of years. She was able to write checks for her personal use and not for business expenses. It was not until a transfer of ownership rights that the missing money came to light.
Giving someone the responsibility to carry on a duty for your business does not mean that you relinquish control. Let’s look at the example of paying the bills. Giving someone the power to write checks on behalf of your business puts them in a position to take advantage of you. You still have the ability to track their activity though. Delegating the work does not mean that you fail to supervise them. A simple solution to this issue would be having the person cutting checks keep a spreadsheet of bills owed and amounts paid. That way you and your CPA can cross check that no improper checks are being drafted from the businesses checking account.
The biggest thing to remember is whether the person you are delegating work to is an employee of the business or is an independent contractor, they work for you. Meaning you are delegating the work to them and not relinquishing all control. That does not mean you are a micromanager but you do need to ensure they are doing what you expect. If they fail to meet expectations or wrong you then you should be able to identify that early and deal with it properly.
Source: “Fremont woman, 50, charged with embezzling $31,000 from Whitehall's Viking Tool” by John S. Hausman of MLive.com