People or Processes: Which Comes First? (Facing Scaling Issues - Need Help)

[GuestUser4aMPs1]

Hey all, just wanted to ask for some advice on hiring/scaling.
My business is a productized service (Progress Here).
What I can tell from other sources, where I'm at right now is where a lot of PServices hit a snag.

I'm basically facing a classic E-Myth problem here - solving a big pain point for people, but I'm the bottleneck to production.
Typically the work wasn't bad at the beginning, and it was easy to under-promise and over-deliver, and to really give the customer an outstanding experience. But now it's Tedious. Mechanical. Draining...and it's affecting my enthusiasm for providing said service.

I know it's time to hire, or at least bring on a part-time freelancer for production.
I've pre-sold enough orders this month to at least cover the cost and make a decent profit, based on the math (this client is also MRR, so if a hire works out, I can keep him/her for a while).

Where I'm hitting a snag is wondering if...

1: I should be more effective personally and document the process for maximum efficiency (widen the bottleneck)
2: Document basic processes and hire ASAP before I drive myself insane.

In other words, I believe there are improvements I can personally make to be more productive and handle a larger load.
But I'm at the risk of being crippled by an influx of orders - unable to do anything else.
(At the same time, there's a lingering thought that I can always push a little harder - But it's lead to some unhealthy habits lately)

On the other hand, I can put basic processes in place and work on more sales to handle an influx, at the risk of having to take time and capital fixing potential mistakes from a new hire.

I'm sure it's an easy question to answer, but does anyone have advice for making this transition?
This stage is just a bit overwhelming. Especially this morning, MJ's Chapter in UnScripted on the Productocracy really struck a chord.
That's when I realized I'd really rather spend more time selling, making customers happy, building relationships, etc...

I'm afraid if I don't get this hire thing figured out, this business is going to really shrivel up.

tl;dr - Not sure to hire until I personally become 100% effective in my habits, or if I should document processes and hire ASAP to save my skin. Both paths have inherent risks and uncertainties.

 

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[Ronak]

Create the systems to run your business, then hire the people to run your systems.

 

[OldFaithful]

In other words, I believe there are improvements I can personally make to be more productive and handle a larger load.

This would be my focus. My preference would be to wait a bit longer to hire, because they will then be you biggest pain point.

How can you accomplish these improvements? Automation? Outsourcing? I must admit that I don't know what your productized service might be, but there must be some facets that would really benefit.

Automation can be applied to numerous tasks. For example, in a previous job I once wrote a large script for use within Autocad that allowed the drafter to create unique drawings in minutes instead of days. Think "out of the box" when it comes to automation!

 

[GuestUser4aMPs1]

@Ronak & @OldFaithful

Thanks for your replies.
Looking back at my E-Myth notes, have to admit I've been working "In" the business instead of "On" the business for a few solid busy weeks.

This would be my focus.
How can you accomplish these improvements? Automation? Outsourcing? I must admit that I don't know what your productized service might be, but there must be some facets that would really benefit.

You're totally right. I haven't taken a moment to really break down every part of the production process, so to answer your question about what improvements can be made...I don't know yet! There are so many things - What software to use, how to manage files, how to stay organized, project management software, and so on.
I'll really need to take the time to sit down and figure out where the 80/20 problems lie and make a deliberate effort to improve, fix, and document those processes.

When I said "Improvements," I was making a generalization to mean being more productive/focused in general, but not related to production processes itself.
The analogy that fits this best is that the machine is only 12% efficient - meanwhile I'm redlining my RPM and guzzling fuel!

Thanks for the extra pair of eyes. Knew it was a simple fix.
Cheers.

 

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[TheSmokey1]

...

Where I'm hitting a snag is wondering if...

1: I should be more effective personally and document the process for maximum efficiency (widen the bottleneck)
2: Document basic processes and hire ASAP before I drive myself insane.

....

#1 is what I would focus on first. You may find yourself even more insane if you start to bring people in before you really have those processes defined and documented. Those processes (and documentation) become the training and resources for anyone you bring on in the future.
I have done option 2 before and it wasn't good. You always think that you'll just start with a few of the basics and then circle back and really focus on it with the free time you have created for yourself by getting the help. But, in my experience, it never works out that way. The act of managing even one person, and answering all of the questions and problems that come up, ends up eating up the rest of your time.

Eliminate and automate before you delegate (to your new hire). And, IMO, you can't effectively delegate what you don't have a process and documentation for.

@Ronak & @OldFaithful
...You're totally right. I haven't taken a moment to really break down every part of the production process, so to answer your question about what improvements can be made...I don't know yet! There are so many things - What software to use, how to manage files, how to stay organized, project management software, and so on.
I'll really need to take the time to sit down and figure out where the 80/20 problems lie and make a deliberate effort to improve, fix, and document those processes.
...

The great thing is, and I was just marveling at this recently, there are so many more options now for growing businesses than there used to be. So many good software packages and subscription options that didn't exist even a few years ago. It used to be that software was a much more prohibitive expense for a young company. It kind of blows my mind. Now you can find excellent options that are free or close to free, and only grow into more expensive packages (with extra features) as you need them. Process management, project management, accounting, lob apps, knowledge management, cloud storage, etc... many of which are free or very cheap to start with. You no longer have to spend $800 - $2000 per person upfront anymore.

But yes, take a step back and figure out your processes and documentation. Problems from poor processes are exponentially magnified the larger you grow. Of course, I don't know your business, so I am speaking generally.

 

[ZCP]

slack.com has helped us a lot. a searchable place for info. a way to collaborate.
also continuously updating the operations manual and procedures.

 

[Nicoknowsbest]

1: I should be more effective personally and document the process for maximum efficiency (widen the bottleneck)
2: Document basic processes and hire ASAP before I drive myself insane.

I was listening to @Andy Black's latest call with @Almantas last night - AndyTalks with @Almantas about Making Plans and Making Progress

Andy's gives his perspective on this analyzing his past - he tells the story of how he automated his own job so much that people had to fire him, because he was simply a cost.

Where I'm hitting a snag is wondering if...

1: I should be more effective personally and document the process for maximum efficiency (widen the bottleneck)
2: Document basic processes and hire ASAP before I drive myself insane.

I am happy to call myself part of a small team.

We are working hard on setting up processes, documenting them and making it very easy to rinse and repeat.

Many of those tiny little details of processes, especially if various skill sets are involved, evolve once you actively solve problems.

What about making sure your part is documented well and bringing a fresh pair of eyes aboard?

What about combining both?

 

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[CareCPA]

I agree you should do #1 first. If you don't have your processes created efficiently and documented, it makes managing others more challenging.
How you can expect others to complete the work correctly if you haven't fully documented what "correctly" means?
How do you set expectations for how long something should take (and thus the wages you should pay them), unless you have the process completely fleshed out?
Documenting processes takes a lot of time, but it pays huge dividends over the years of your business.

 

[GuestUser4aMPs1]

Hey all, thank you for your replies. It really has helped. This post was mainly created in desperation, but the path is much clearer now.
Since then, I've taken the foot off the gas a bit and started getting organized. It was like trying to eat an elephant all at once instead of taking it a bite at a time.

In a search, this video really helped ask the right questions in the business at this stage:

View: https://www.youtube.com/watch?v=x-XnmLojB6g&ab_channel=BrianTracy