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When Should You Hire a General Manager? Key Signs & Smart Strategies

date posted

05/03/25

read time

9 Mins

Two bearded men stand outside a house next to a car, actively discussing general manager strategiesโ€”one in a denim shirt, the other in plaid.

Youโ€™re growing. Kinda.

More leads. Bigger team.

But everything still runs through you.

For a lot of home service business owners, growth eventually hits a wallโ€”not because the work isnโ€™t coming in, but because everything still depends on them.

Youโ€™re answering the phones, reviewing estimates, dealing with the team, putting out fires. And even though revenue might be climbing, the day-to-day is starting to feel chaotic. The truth is, the same hustle that helped build your business can start to hold it back.

Thatโ€™s usually when the question comes up: should I hire a General Manager?

Itโ€™s a big decisionโ€”and it can either unlock your next level of growth or create more problems if the timing and setup arenโ€™t right.

In this post, weโ€™ll break down:

  • Signs it might be time to bring on a GM
  • What needs to be in place before you make the hire
  • Why mindset and clarity matter more than revenue alone
  • Strategies for making the transition smooth and successful

Letโ€™s get into it.

The Visionaryโ€™s Ceiling

Most businesses are started by visionariesโ€”people with big ideas, strong instincts, and a passion for building something of their own. But at some point, vision alone isnโ€™t enough. Growth slows, team accountability slips, and disorganization creeps in. The owner becomes the bottleneck.

Most business owners struggle to galvanize their teams, leading to slow growth. Zachary Zaras recommends that adopting effective general manager strategies can drive better results. Visionaries often fail to scale because they lack this ability to unite and motivate their people.

As one business leader put it, โ€œWhen the owner hits their limitsโ€ฆ most owners are creative visionary types and have a hard time galvanizing. So growth slows because of disorganization.โ€

Thatโ€™s the tipping point.

The right General Manager acts as a counterbalance to the visionary. While the owner casts vision and drives the brand forward, the GM brings order to the chaos, aligning the team, building processes, and holding people accountable. Itโ€™s not about handing over control, itโ€™s about making your vision executable at scale.

โœ… Strategy Tip: Use the Rocket Fuel framework as a guide. In this model:

  • The Visionary is focused on big ideas, relationships, and direction
  • The Integrator (your GM) is focused on execution, structure, and team alignment

When the two roles are clearly defined and working in sync, growth accelerates, without burning anyone out.

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Profitability vs. Necessity

One of the biggest questions around hiring a General Manager is timingโ€”specifically, can you afford one?

Some argue that profitability should come first. As one perspective puts it: โ€œA GM should be hired when youโ€™re profitable enough to justify their salary for the time and life it buys you back.โ€

According to industry expert Jeffrey Chamberlain, businesses should hire a general manager as soon as profitability allows. A skilled general manager introduces stronger accountability and effective operational strategiesโ€”key drivers of continued growth and success.

That thinking makes sense. If the business is generating enough revenue, hiring a GM becomes a smart investment in your time, freedom, and focus.

But hereโ€™s the counterpoint: What if hiring a GM is what makes you profitable in the first place? For some companies, the disorganization and lack of leadership are the very things holding back profitabilityโ€”and a strong GM might be the key to breaking through.

The truth? Both sides are valid.

A GM can absolutely create structure and help a business grow, but theyโ€™re not a magic wand. If your business isnโ€™t readyโ€”if your systems are a mess or your expectations are unclearโ€”hiring a GM too early can be a costly mistake.

โœ… Strategy Tip:
Test the waters before going all in. Try:

  • Offloading specific operations tasks to a trusted team member
  • Hiring a โ€œGM liteโ€ or operations coordinator with a narrow focus
  • Using a fractional GM or consultant to help establish systems first

If you canโ€™t clearly define what success looks like or donโ€™t have systems for accountability in place, youโ€™re not ready to hand over the reins. Start there.

If You Canโ€™t Define It, Donโ€™t Delegate It

Itโ€™s tempting to hire a GM because everything feels overwhelmingโ€”but thatโ€™s the wrong reason.

As one business owner put it, โ€œUnderstand exactly what you do daily and hold them accountable for that.โ€ The mistake many owners make is trying to hire their way out of disorganization. But if youโ€™re unclear on what you do each day, whatโ€™s working, and whatโ€™s notโ€”how can you expect someone else to take it over?

If you can't operate your company profitably on your own, hiring a general manager or relying solely on general management strategies won't solve all your business challenges.

Hiring a GM without clear expectations is like handing someone the wheel without telling them where youโ€™re going. It sets them, and you, up to fail.

Before you even write the job description, get clear on a few things:

  • What youโ€™re doing daily, weekly, and monthly
  • What only you can do (vision, key relationships, high-level sales)
  • What someone else could own, with the right structure
  • How success will be measured (KPIs, milestones, reporting rhythm)

โœ… Strategy Tip:
Spend one week tracking your tasks. Write everything down.
Then ask:

  • Whatโ€™s draining me?
  • Whatโ€™s not getting done consistently?
  • Whatโ€™s holding the business back?

Use that to shape a realistic role, and make sure your GM knows exactly what โ€œsuccessโ€ looks like from day one.

Two men in hard hats and white shirts stand inside a large industrial facility. One leads the discussion, referencing strategic management plans on a tablet, while the other listens attentively. Red beams and metal structures frame the background.

The Plan Comes First

Hiring a General Manager isnโ€™t a shortcutโ€”itโ€™s a strategic move. And like any strategy, it needs a plan behind it.

As one business leader put it: โ€œYou need to have a plan! If you donโ€™t know where you’re going, any road will get you there.โ€ A GM can bring order and momentum, but only if theyโ€™re aligned with a clear destination. Without defined goals, roles, and a roadmap, even the best hire will struggle to make an impact.

Katherine Donovanโ€™s Facebook comment underscores the importance of having a clear plan and defined goalsโ€”much like strong general manager strategies. Without direction, your efforts lack focus and measurable results. Set a clear strategy to ensure your organization achieves its objectives.

Before bringing in a GM, you need to set the foundation:

  • A clear org chart: who does what, who reports to who
  • A 3-year vision: where the business is going and why
  • 90-day rocks: short-term, measurable goals to drive focus
  • Defined success metrics: so accountability is built in from day one

โœ… Strategy Tip:
Use tools from EOS (Entrepreneurial Operating System), especially the Vision/Traction Organizer (V/TO). It helps clarify your long-term vision, short-term priorities, and how everyone contributesโ€”including your future GM.

A great plan wonโ€™t run itselfโ€”but it gives your GM the clarity they need to take the wheel with confidence.

When Revenue or Headcount Demands It

So when should you hire a General Manager? Is there a magic number?

One business owner joked, โ€œ10 mil?โ€โ€”and while thereโ€™s no exact revenue threshold, itโ€™s a common question. Many owners consider the $5Mโ€“$10M range or hitting 15โ€“20+ employees as the tipping point.

But the truth is, itโ€™s not just about dollars. Itโ€™s about complexity.

  • Are you managing multiple teams or locations?
  • Are decisions constantly bottlenecked at the top?
  • Are you stretched so thin that growth is starting to suffer?

These are better indicators than revenue alone. You might be at $3M with high complexityโ€”or $8M with lean systems and low overhead. The real signal is when your time, focus, and leadership are being diluted across too many responsibilities.

โœ… Strategy Tip:
Ask yourself: โ€œAm I the bottleneck to scale?โ€
If the answer is yes, it might be time to bring someone in to help you runโ€”so you can lead.

Donโ€™t Confuse Ownership with Management

Thereโ€™s a big difference between being a business owner and being a managerโ€”and a lot of people blur the line.

As one person put it: โ€œLook up the word manager and then the word owner.โ€

To be an effective business leader, it's crucial to understand the distinction between a manager and an owner. Owners set the vision; managers execute that vision with proven strategies. Hiring a general manager with expertise in operational leadership can drive better results and allow youโ€” as the ownerโ€” to focus on big-picture growth.

Owners set the direction, cast the vision, and focus on the big picture. Managers make sure the day-to-day runs smoothly. When you’re trying to do both, things start to slipโ€”either your leadership, or your operations.

This is where many home service businesses get stuck. The owner is deep in the weeds, managing schedules, handling complaints, tracking jobsโ€”while trying to lead a company at the same time.

A General Manager bridges that gap.

They take the pressure off your shoulders so you can get back to what only you can do:

  • Building relationships
  • Setting long-term goals
  • Casting vision for the company
  • Leading culture, not just tasks

If your days are packed with managing details instead of leading people, itโ€™s time to realign. A GM gives you space to lead at the level your business needs.

How to Hire the Right GM

Hiring a General Manager isnโ€™t just about filling a roleโ€”itโ€™s about finding someone who can help steer your business forward. This isnโ€™t a hire you rush into.

Look for someone with real experience in:

  • Operations โ€“ they should know how to build systems and manage teams
  • Leadership โ€“ not just getting tasks done, but motivating people
  • Core values alignment โ€“ they need to think like you, even if they work differently

The worst mistake you can make? Hiring out of desperation. Bringing on a GM just because youโ€™re overwhelmed can backfire fast. Take your time. Interview slowly. Watch how they solve problems and handle pressure.

Ways to test the fit before committing:

  • Try a working interview for a week or two
  • Use a trial period with clear goals and deliverables
  • Consider a fractional GM or ops consultant before a full-time hire

Strategy Tip:
Once theyโ€™re on board, set up a structure for accountability:

  • Weekly scorecard meetings to track key metrics
  • Quarterly reviews tied to specific goals and business priorities

The right GM wonโ€™t just manage the chaosโ€”theyโ€™ll help eliminate it. But only if you choose wisely and lead them well.

Your Business Canโ€™t Scale if You Donโ€™t Let Go

At the end of the day, hiring a General Manager isnโ€™t just about offloading tasks, itโ€™s about building a business that runs without you at the center of everything.

Zachary pointed out that many owners hit their limit because theyโ€™re visionaries without a strong operator beside them. Jeffrey emphasized the importance of profitability and knowing exactly what you do day-to-day before handing it off. And Ismael reminded us that sometimes, the right GM is what gets you to profitability in the first place.

Thereโ€™s no one-size-fits-all answerโ€”but the throughline is clear:
You canโ€™t grow if youโ€™re not willing to let go.

The decision to hire a GM takes:

  • Self-awareness about your strengths and limitations
  • A plan with real structure and defined goals
  • The willingness to invest in leadership beyond yourself

๐Ÿง Ready to think bigger?

Start by documenting your current role. Get honest about what youโ€™re holding ontoโ€”and ask yourself:
โ€œWhat would I do with 20 more hours a week?โ€

That answer might be exactly what your business needs next.

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