How to Build a Team? Part 1. Delegation.

Many entrepreneurs eventually realize they need a team. But finding the right people is no easy task — the company's future depends on it. Want to build a team that takes your business to the next level? Then this article is for you.

WHY WITHOUT A TEAM YOUR VENTURE ISN'T A BUSINESS?

What's the difference between a business and self-employment? Simple: a business has a team, self-employment means doing everything yourself. Why? Because without a team, you can't step away from the operation — not for vacation, not for family time. Unlike a regular job where someone covers for you, here everything depends only on you. That's not a business — that's a job you created for yourself.

HOW DOES A TEAM ACHIEVE RESULTS?

A team works according to this scheme: employee → function → result → company goal. The employee takes on a function. By completing that function, they achieve a specific result — and the combined results of all employees lead the company to its goal. Every company has a starting point A and a target point B. The team's job is to close that gap.

WHERE TO START WITH DELEGATION?

When does an entrepreneur think it's time to hire? When they can't cope alone? That would be ideal. But no. Beginners don't build teams because of a pile of fears: 'What if I share everything with an employee and they copy my business?' 'What if I can't pay their salary?' 'What if I do it better myself?' These fears keep entrepreneurs stuck in the role of the one-person show forever.

Now let's look at what to do about it. Tasks fall into 2 types: tangible tasks (when you perform an action) and mental activity (when you make a decision). You can only start delegating tangible tasks! That's the key mistake. When you delegate tasks, you hand over the action — but you still carry the mental load of oversight, checking, and correcting.

Delegation means assigning someone a task you previously did yourself. Assignment means giving a task that was never done before — introducing a new function. Remember: a new person in your business should NEVER start by doing assignments. Only delegation first.

Why? Because as an entrepreneur, most tasks rest on you — and you spend 100% of your time on them. When you hand a task to an employee, you might think you can forget about it. But you still spend time and attention on it. For example, before you spent 3 hours a day on it. After handing it off, you still spend 1 hour on oversight. But your employee also spends 3 hours. You haven't freed time — you've duplicated effort.

When we hire someone, we want to see that they bring in money. The question arises: 'What am I paying them for?' So we put them where there's direct revenue contact — like sales. That's ineffective, because sales skills are their own skill set. And sales are your key revenue driver. What you're doing is risking your most critical function.

All work tasks can be divided into four categories: 1) I don't like doing it and do it poorly — e.g., accounting, done in a rush. 2) I don't like doing it, but do it well. 3) I like doing it, but do it poorly. 4) I like doing it and do it well. Category 4 is your Zone of Genius. Delegate everything else, starting with category 1.

The result to aim for: you walk into the office and people are working there that you don't even recognize. Meaning, you don't need to control everything for the company to grow.

WHO TO HIRE FIRST?

In 90% of cases, the ideal first hire is a personal assistant. Someone who handles everything you do poorly and don't enjoy — to free up your time. Then you can focus on the key tasks. It's not always necessary in every business, but in most — it's the fastest way to start scaling.

When hiring, it's important to set 2 metrics: a direct result the employee produces and an indirect result. Sometimes company revenue grows after a new hire — but the new hire didn't directly cause it. That's the indirect result in action.

For effective delegation, know the cost of your hour. Calculate how much you earn per hour (last month's revenue divided by hours worked). From today, make it a rule to delegate everything that someone else can do cheaper than your hourly rate. As soon as a task costs less than your hour — stop doing it yourself.

In Part 2, you'll learn how to select the best employees in the shortest time. Stay tuned.