As your business grows, it can become increasingly difficult for you to manage all aspects of the organization effectively.  

Different areas of your business will require corresponding skill sets and expertise, so it’s important to have the right people in place as your business continues to develop. 

While many business owners are capable of managing various aspects of their operations, they may eventually find themselves in a position where they need support to take their business to the next level. 

This is where a general manager can come in handy.

What is a general manager?

A general manager (GM) is a high-level executive who oversees the day-to-day operations of a business. They ensure that the company is running smoothly and efficiently and that the business goals and objectives are being met through the staff’s daily output. 

The GM is typically responsible for managing various departments, including: 

• Finance
• Human resources
• Marketing
• Operations

The GM oversees lower-level managers and works closely with other senior executives to develop and execute the company’s strategic plan.

A general manager gains experience by succeeding in lower-level management positions before advancing to top executive positions or more renowned companies. They will typically have the following skillsets:

• Budgeting, planning, and strategy skills
• Problem-solving skills
• Knowledge of business processes and functions 
• Communication skills
• Analytical skills

There are key differences between a general manager and other top executives. While a general manager is responsible for overseeing different departments in a company, a CEO handles the fiscal oversight and long-term decision-making for the business.

A general manager shouldn’t be confused with an operational manager either; the former typically handles most (if not all) aspects of the business, while the latter exclusively deals with business operations and production.

4 signs it’s time to hire a general manager

Maybe you are hesitant about getting a general manager for your business, thinking that you don’t need one yet. 

But there will be key indicators that prove otherwise, and we’ve shortlisted the top red flags that signal it’s time for you to get a general manager for your business.

1. You lack expertise in certain business areas

It’s normal for a business owner to have weak spots; no one’s perfect! When a business owner insists on taking on responsibilities outside their expertise, though, that can be a problem.

When a business owner lacks expertise in a particular area, it can result in costly mistakes and missed opportunities. A general manager who has experience and expertise in areas such as finance, marketing, or operations can fill those gaps.

2. You have an overwhelming workload

As a business owner, your key responsibilities include strategic planning and growing the business. If you spend too much time managing day-to-day tasks, you lose focus on activities that need your attention. 

A general manager can take on some of the workload and free up your time to focus on higher-level tasks. And remember, even business owners deserve to reclaim free time for themselves and away from their business — and an effective general manager can help you do that.

3. Your business is experiencing stagnant or declining performance

If you are experiencing stagnant or slow growth, it may be time to bring in a general manager to help identify areas for improvement and develop a plan to accelerate growth.

A general manager can give a fresh perspective on the development of your business while having the same level of commitment and investment as you in seeing your organisation succeed.

4. You need to scale the operations

If your business is growing rapidly, you may need a general manager to help scale your operations. A skilled manager can help you streamline processes, increase efficiency and expand your business into new markets.

The benefits of hiring a general manager

Your potential GM should be capable of handling basic responsibilities within their position to propel your organisation towards success. 

There are six key tasks a general manager must excel in to positively impact the organisation. These include:

• Shaping the work environment
• Setting strategy
• Allocating resources
• Developing managers
• Building the organisation
• Overseeing operations

There are three benefits that you and your business can expect from having a good general manager at the helm:

• Focus on strategic planning – With a general manager taking on day-to-day tasks, you can focus on strategic planning and long-term growth.
• Improved operational efficiency –  A general manager can identify inefficiencies and implement processes to streamline operations, reducing costs and improving productivity. 
• Enhanced team management – A general manager can help create a positive and productive work environment by improving communication and collaboration among team members. They can also develop training programs to help employees develop new skills and improve performance. 

Your general manager can support you in developing a strong management team, overseeing the training of great leaders in the workplace and making sure that junior staff are well taken care of.

What size should your business be when you hire a general manager?

While there is no specific size that a business must reach before hiring a general manager, it’s best to wait until you have 25 to 50 employees before considering a general manager. 

At this stage of development, your business will likely become too large for just one person to handle. A dedicated general manager can streamline operations and improve overall efficiency, bringing back focus and excellence in every aspect of the business.

What you need to know about hiring a general manager

Ultimately, the decision to hire a general manager should be based on a careful assessment of your business needs and goals. While it may be a huge investment, bringing in an experienced and skilled manager can help you take your business to the next level and achieve long-term success. 

According to this Mckinsey article, great managers and supervisors can significantly impact the performance and job satisfaction of junior staff employees. So it’s crucial to find a general manager that is committed to contributing to the success of your organisation. As a leader, your general manager should also be invested in the success of your staff members in their roles, as each employee contributes to the growth of the entire organisation.

Before you hire a general manager, you must consider the potential impact on your business culture and team dynamics. 

Introducing a new manager can sometimes lead to resistance from existing employees who may feel threatened or concerned about changes to their roles or responsibilities. It is important to communicate openly and transparently with your team about the reasons for hiring a general manager and how their role will fit into the company’s overall vision.

Hiring a general manager can be a smart and strategic decision for many businesses. By bringing in an experienced and skilled professional to manage your operations, you can free up your time and resources to focus on growth and expansion. 

With the right support and resources, a general manager can help take your business to the next level and achieve long-term success.

Your general manager must be experienced and equipped with developing different areas in your business. Contact us and we will help you get your business GM ready so you don’t waste time and resources.