The Managing Manager Versus The Working Manager

The Managing Manager Versus The Working Manager

There are various decisions that need to be made when opening a small business. One of them is hiring a managing manager or a working manager. Unfortunately, most people do not even know what that actually means. According to Ryan Grigson, the real choice between the two is based on where the owner wants the business to go.

The Two Job Types

The working manager is practically someone that is highly involved in all business areas. They tend to do everything, ranging from marketing to meeting people. You will even see some that take out the trash. The managing manager is one that mainly delegates tasks. He/she tells others what to do, how to do it and where to go.

When the small business is opened, the obvious solution is the working manager. In many cases it is actually the business owner that is the working manager. In the future, the managing manager is normally seen as a much better option. Also, it does depend on business type and the decision that is desired.

There Is No Obvious Best Choice

In many cases the choice between the two boils down to personal preference. There are many situations in which a one-man business ends up growing and has a working age of over 10 years, all with great results. There are also many small businesses that started with a ten-man operation, with great results.

In order to make a choice between the two, all business aspects have to be analyzed. The most important thing is to think about business future. You want to figure out where you are going. In most situations you will start with the one-person operation but do you want to eventually start hiring other people that would hire more business areas? Business nature is going to dictate many of the answers to such questions.

How Much Is The Owner Involved?

This is one of the most important questions to answer when the choice is going to be made. If the business owner is going to be involved in numerous aspects of the business, he often becomes the working manager. When the owner is not involved in many operations, it is quite common to see him hiring a managing manager. The owner discusses everything with the manager that will then take care of day-to-day operations with the help of a team.

How Much Budget Is Available?

This is another fact that needs to be taken into account since finances will dictate what options are actually available. The working manager is normally paid more simply because he does a lot more work. However, this is still cheaper in the long run than building a team that the managing manager would then use. One of the main reasons why startups use working managers is this lack of capital to hire a big team that would be operational from the start. If the budget is high, hiring the managing manager with a team tends to leave towards a much faster business growth.

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