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As entrepreneurs, it’s our job to wear many hats — most of the time out of necessity. 

While being the jack of all trades may be needed during the formative years of a company, it can slow down the growth of your business. 

So how can you strike a balance and get the most out of your business? Frequently it comes down to knowing what you do best (and worst). 

That was the topic of our latest conversation on the Inner Edison Podcast with Ed Parcaut. 

We spoke with Freshbooks founder Mike McDerment. He shared his experience of going from a three-person operation working out of his parent’s basement to the #1 cloud accounting software for small businesses with 500+ employees. 

Every Owner Wears One of Three Different Hats

Mike explains that many entrepreneurs spend their days juggling between three different roles. He bases this philosophy on Michael Gerber’s book The E Myth. 

The three roles are: 

1. Entrepreneur
2. Technician
3. Management

Mike states that he was fortunate enough to team up with two other people, and together they realized that they each had one of these individual strengths. He never planned it to work out that way. It just seemed to happen serendipitously. 

However, Mike states that many entrepreneurs are stuck juggling all of these roles until they can find the right people as they grow. 

Mike explains that this is the dilemma that most entrepreneurs have while growing their companies. However, even with Mike’s strong team, he admits it was hard to relinquish control at first.

We All Have Strengths and Weaknesses — and That’s a Good Thing!  

It wasn’t until Mike realized that others could take over areas of his company he didn’t enjoy that he found ways to build better. 

He recalls talking to another business owner and explaining how he didn’t like writing up reports for his board and how it always takes so much time. 

His colleague fired back with, “If you don’t like it, why do you do it?” 

It never occurred to him to have someone else do those parts of the business that he didn’t like. As it turned out, his partner loved that aspect of the business, so he took over those duties. 

It gave Mike the freedom to focus on business, vision, and strategy.

It Takes the Right People To Grow

Once Mike realized that finding the right people could make his job easier and help him love his role more, he looked for the right executives to grow his company.

That was then he focused on finding the right talent for his executive team. Finding the right people with real executive experience, he could feel comfortable focusing on what he was passionate about while the team handled other aspects of the business. 

It wasn’t until he leveled up his executive team that he would comfortably grow his team past 150 employees. 

Knowing When to Step Aside

Mike spent eighteen years running Freshbooks, helping to grow the company, but recently made the decision to step aside. Now, he spends his time working as a board member. 

Just as he realized that it’s important to find the right team, he realizes it’s essential to know when to release the reigns. While he understands that this can be a difficult decision for some entrepreneurs, he feels it was the right decision. 

Today, Freshbooks helped 24 million users get paid over 60 billion in invoices saving over 192 hours a year for small business owners. 

If you’re looking for more information about Freshbooks, you can start a free trial. 

As always, if you’re looking for more great interviews about entrepreneurism, please check out the Inner Edison Podcast with Ed Parcaut.