No Ownership of Operating Costs
When you are just starting out, you may have total ownership of the operating costs. The bucks stop with you. As you grow, that can change. You move from having just outside spending on information technology to having your own head of IT. Or you could now have heads in other areas, like marketing, product development, or customer service.
As your company grows, you cannot do it all. Even though you have hired them, you still may not be using them well:
• You may have too tight of a leash. It all goes through you still. Everything has to be approved.
• You could go the other extreme. One or more department might get free rein. You end up spending money you did not realize.
• They do not know how the numbers are doing. You do not share the department costs with them. They do not see the monthly financials, which can be fine. But they still need to know how they spend money.
• There is no budget or it comes from you. It is top down and they never take ownership of it. Or they do get involved, take ownership, but never see how they compare against budget. You may not even see this either, if you do not add budgets to your reporting package.
If they do not feel like part of the game, you are not using them well. They do not help you as well as they could and operating costs get higher.
As your company grows, you cannot do it all. Even though you have hired them, you still may not be using them well:
• You may have too tight of a leash. It all goes through you still. Everything has to be approved.
• You could go the other extreme. One or more department might get free rein. You end up spending money you did not realize.
• They do not know how the numbers are doing. You do not share the department costs with them. They do not see the monthly financials, which can be fine. But they still need to know how they spend money.
• There is no budget or it comes from you. It is top down and they never take ownership of it. Or they do get involved, take ownership, but never see how they compare against budget. You may not even see this either, if you do not add budgets to your reporting package.
If they do not feel like part of the game, you are not using them well. They do not help you as well as they could and operating costs get higher.














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