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The proper balance of management

Choosing the form you business will take is important. That framework will form the superstructure that you use for support and growth of your business. It will determine how you pay your taxes and how you share your profits.

As important is developing a management structure. If your business begins small, you may have a flat management. In some cases, you may have a very vertically integrated business, where you perform all activities as both the manager and worker. However, even if you begin very small, you could grow and add employees and inevitability, managers.

And by this point, you should sit down with your attorney and discuss how to formalize your structure. It does not need to a draconian, Soviet-style bureaucracy to control all of your functioning. Some happy medium between free flowing chaos and locked-down control will probably serve you and your business best.

A local writer notes that one of the reasons behind Google's major management change, devolving into a holding company of divisions, is likely the driven Larry Page's experience of being sucked into the endless minutia of budgetary issues and expense reports when that company abandoned the use traditional managers.

This work is necessary, even if it is not as important as the actual production of whatever good or service your business provides.

However, determining the proper amount of management is essential. If your management structure begins to believe it is "the business," and that it is more important than the delivery of your goods and services, your business may find itself in just as much trouble as one where there is no control and no one person truly knows what is going on.

The key to being an effective owner/manager of your business is finding the balance point between making sure the bills are paid and that there is sufficient revenue to pay those bills.

Source:, "Schafer: Google's new structure has roots in GM management innovations," Leo Schafer, August 20, 2015

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