This is a cross posting about part-time directors from my other business, Local Business Partners.
“Yo-Yo Confidence” is the real danger to growth
News from the BDO Employment Index that hiring intentions are down but optimism is rising highlights the “Yo-Yo Confidence” problem that is holding SMEs back.
Business Desk North West notes that
“The weakening index reflects recently published official figures, with unemployment rising to 8.1% and job vacancies falling back in August. BDO‘s index, part of its monthly Business Trends report, recorded a score of 90.7, a 28-month low.
However, the report also suggests optimism rebounded last month, continuing a pattern of ups and downs in confidence over the last four years.”
As indications from surveys and reports move and up and down the confidence scale, businesses find themselves forever at the crossroads of wanting to move forward with plans and steal a march on competitors but held back from hiring the kind of high performing individuals that can deliver growth.
“The risk of putting perhaps £80,000 and more on the salary line is a massive decision for an SME, but many business owners know that they will only develop their potential if the owner is freed up from wearing so many hats that the strategic work of growing a business gets lost in the fire fighting” says Oli Randell, founder of Local Business Partners.
“When faced with this endless uncertainty what SMEs need is a practical way of bringing high calibre people into the business at the lowest possible risk”
“Many businesses will have considered hiring a director of finance, HR or marketing to achieve high performance but baulked at the commitment risk and cost.
By using a part-time director on flexible terms, Local Business Partners can deliver the same results at about half the cost.
How? By putting in three controls.
1) Control how much senior input is needed each month to achieve the business’ goals.
2) Control how efficient a director needs to be. Think how much senior time is spent on non-essential tasks. Decide what’s needed and don’t pay for all the other things that end up being delegated upwards.
3) Control the term of engagement. Hiring a director is a big decision and what if the chemistry isn’t right after the honeymoon?
