Entrepreneurs often see “expense” and “investment” as synonymous. But the two couldn’t be more different.
- An expense costs you money
- An investment costs you money but ALSO makes you money
Where do you spend your money? Expense or investment?
Unfortunately, many entrepreneurs can’t differentiate between these two terms. They spend money on things they think will propel the business, without a strategic plan to base it on.
Or they refrain from making investments that could massively spur their growth, afraid to “spend the money.”
Let’s talk about one of the most overlooked CEO investments: hiring a TEAM.
Yes, hiring a team is initially an expense. But with the right systems and framework, that investment will bounce back to you( as they help you boost your sales, drive more clients, and earn more revenue).
Measure Your KPIs, Then Measure Again
Most businesses keep hustling and grinding until they can move the needle. But what’s the point of working so hard if they’re not tracking progress, measuring numbers, and figuring out what works and what doesn’t?
If you don’t know where you’ve been, you can’t see where you’re going.
This is where Key Performance Indicators (KPIs) come in.
Key Performance Indicators are strategic indicators of how your business is performing effectively. They reveal:
- What is directly helping your business grow, and
- What areas need to be improved
Since this data is so crucial to long-term business growth, your team should be taking part in tracking and improving KPIs.
They need to take ownership of their responsibilities to meet the goals of your business.
So how can you delegate this to your team?
- List and use essential KPIs for your business –
There are many KPIs you can track. Choose what’s important for your business. Are they aligned to your business goals? Are they measurable? Actionable?
- Assign KPIs related to each team member’s role and explain them clearly –
This is where you really know if you’re getting ROI from your team! If you’ve hired a copywriter, assign KPIs like click-through rate (CTR), email open rate, or conversion rate. Your accountant/bookkeeper can track quarterly profits and losses, and annual sales growth.
- Set up a KPI meeting where everyone will report –
Hold your team accountable by setting up a designated KPI meeting. This keeps team members accountable, not only to you but to the whole team. These meetings are the best time to brainstorm on improving numbers, giving suggestions, and motivating and empowering your team to improve those numbers.
Remember: this is an ongoing process! It never stops. Once your team learns how to track and improve their numbers, you’ll gradually see those results getting bigger. You hit KPI targets – you eventually increase ROI.
Hold Your Team Accountable
Accountability helps a team climb to its highest potential. Yet this is the weakest link in so many CEO’s team culture.
18% of CEOs’ ultimate weakness is holding their teams accountable! Another 15% from the Predictive Index’s study admitted they struggle to let go of consistently underperforming team members.
I know many entrepreneurs tend to get lost in the weeds of their businesses and accountability systems fall by the wayside. But I’m telling you, holding your team accountable is non-negotiable. This is the key to having a high-performing, winning team.
So how do you hold your team accountable?
- Set goals and clear expectations – Before you hold them accountable, make sure your team knows what’s expected of them.
- Be prepared to give feedback – People need validation. Your team needs to know if they’re doing a great job… or not. So provide feedback. Be specific. Share their strengths, weaknesses, and offer corrective action.
- Always follow up – This doesn’t mean you have to micromanage. Just stay aware of what’s going on. This can be as simple as asking team members to report back with simple benchmarks. If anyone has roadblocks, be there to offer support.
Holding your team accountable helps them take ownership of the results they create. If they’re always aware of what’s expected of them, they know what to do and how to perform at their best.
Take Time to Find The Right Hire
Maybe you’ve established measurable goals.
Maybe you have a rock-solid accountability system in place.
But there are still a few team members that consistently underperform.
What’s the last trick in the book?
It could be as simple as firing.
No leader enjoys or wants to fire a team member. So I’ll tell you how to keep yourself out of the situation in the first place!
Many of my clients used to rush the hiring process because they needed to fill the gap as soon as possible. Which is definitely understandable.
Any overwhelmed CEO would love to get things off their plate ASAP. A new hire can easily step in and give you one less thing on your to-do list.
But you have to be careful who you recruit in your team.
Hiring just anyone is a Band-Aid solution. Someone takes over a role in your business and does the job.
But as time goes by, you realize that they bring more losses than wins.
They don’t show up on time, fail to meet deliverables, cause chaos within the team, and more.
So don’t rush. Make sure you’re choosing the right people for your team.
Here are some tips for hiring the right person.
- Look for someone committed to their career – You don’t want to hire someone who gets tired and bored easily. A committed person will stick to their passion and will go the extra mile to boost your business’s ROI.
- Check compatibility – You want to find a prospect that fits in well with your company’s culture. Are they goal-oriented? Transparent? Problem-solver?
- Ask for references – Check a candidate’s background, including their work history. If they haven’t gotten along with their previous clients…time for another interview.
Take the necessary time to recruit the right people in your team so you can get ROI from them in the first place.
Grow Your Team Through Coaching
Learning is a never-ending process.
Team members that get on board with this will always help you grow. I know you’re committed to never-ending growth – and your team should be too.
Even if you hire the best sales agent or project manager, they can learn new skills, new approaches, new systems, new methods. Coaching is a great way to do that.
This approach is much more up close and personal. Your team will sense that you’re also willing to invest in their personal development.
This motivates, empowers, and drives your team to do more and perform better.
Coaching and mentoring come in different forms for different needs/budgets.
- Set up 1:1 coaching – 1:1 coaching is really helpful for team members who need high-level support.
- Enroll your team in a course – Sure, your team members might be doing an awesome job. But you’ll always notice some areas where they can improve. Go ahead and enroll them in a course! Courses are effective tools to gain experience and hone their skills.
- Give helpful resources related to their role – These resources are not limited to books, PDFs, and videos. Give them any resources that they can read, watch, or use to improve their skills!
Coaching and mentoring play a vital role in a leader-team member relationship. They provide that avenue for your team members to stretch way past their current skills. When you help your team improve, you get ROI from them.
It’s a simple equation.
Focus on Team Empowerment
Your role as a CEO/team leader doesn’t end with hiring, onboarding, or even training your team.
Company culture trickles down from you. If you’ve fostered a working environment where everyone gets mutual trust, respect and support—that’s empowerment.
So how do you empower your team?
- Delegate! – Handing responsibilities (and results) to team members is one way of empowering your team members. When they have autonomy, they free you up as a CEO. And of course, you also get ROI.
- Give constructive feedback – Telling a team member they did a good job when they didn’t won’t help them. Constructive feedback allows your team to learn from their lapses, grow, and do their part in never-ending growth.
- Accept ideas and input – Even as a CEO, you need to be open-minded and willing to take suggestions. Give them the opportunity to speak up. Your team has valuable ideas and input that will genuinely help you.
Team empowerment creates a loyal team. A team committed to productivity and high performance. They’re the ones that can help you cross that 7 figure mark.
That’s why your team can be your best investment yet!