How KPD is your business?

A weekend sporting injury has created a pain in the butt for me this week. Literally. So as I sit here gingerly in front of the computer, doing enforced downtime, I'm reminded of one of the perils of running a small businesses: that being Key Person Dependent (KPD) can impact your performance.

KPD is a particular danger for micro and solo businesses, where you, the owner, do much in the business. If you're not there, things just don't happen. But it's also a factor of every small business because when we hire people, most of us rely on them to do specific tasks that no-one else in the business knows how to do.

Ask yourself: if I took a tumble, would someone else know what needs to happen in my business today? Or if your admin manager got hit by a bus, could people still get paid? If your foreman doesn't show, does anyone else know where the projects are up to?

My tip for small businesses is to make sure that everyone knows how to do another person's job. Develop a mentoring program as an essential part of your strategic and staff development. It's a simple way to mitigate your KPD risks, protect your intellectual property and, as Professor Ian Williamson states in The Small Business Success Guide, it "allows for the cross-fertilisation of ideas".

Basically, if your staff are mentoring each other, you won't be left high and dry, and you'll guarantee that your IP isn't tied to an individual.

And if your business is a micro operation, or just you? Make sure you outsource certain tasks and organise back-up services in the event that you're flat on your back.

You don't want KPD to make your business suffer too!

Margie