How to Make Bigger Better

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The board met once a month and helped Humphrey draw up goals such as improving return on investment or developing a sales coaching strategy. Humphrey had to make progress on each goal by the next meeting.

"I knew I would never have their respect if I didn't deliver on those commitments," he says. "I wish I'd done it sooner. It didn't cost anything, but it was worth millions to me."

PASSING THE REINS.

Sometimes the best thing an entrepreneur can do for his or her company is to let someone else run it. In October, 2004, Humphrey recognized that he had taken DrinkWorks as far as he could without a dramatically larger sales force and new product lines. He sold the company to a competitor, Warren (Pa.)-based Whirley Industries, which had a big, established sales force. Whirley also made a midpriced product line that complemented DrinkWorks' offerings.

Humphrey is vice-president of new business development for Whirley-DrinkWorks and has moved his family from California to Pennsylvania. "I'm happy that the companies merged," says Humphrey. "DrinkWorks was such an emotional part of me, if I had had to let it go, I don't think I could have done it."

Often, as in the case of Dale Carman's ReelFX, the solution is less drastic. Carman and a friend from high school, David Needham, founded ReelFX in 1993, when Carman was 22. The company, which produces visual effects for film studios and advertising agencies, now has revenues of $25 million. In mid-2004, Carman realized he wasn't doing what he does best. "I recognized I had a passion for the work, not a passion for running a company," he says. "I'm good at pulling off animation projects. I'm not as good at finance or taking a company public or being CEO."

BRINGING UP BABY.

The answer for Carman was to hire Steve O'Brien, a serial entrepreneur, to replace him as CEO. O'Brien has already set up an employee stock-options program, which Carman had wanted to offer but didn't know much about.

Carman's new title is chief visioneer. He oversees creative, while Needham heads sales and marketing. With O'Brien, the three are members of a new six-person management team that collaborates on all key decisions.

"This way I can focus on what sets us apart and what we're special at, and Steve can apply all his skills and expertise to running the company," Carman says. Although he still considers the company to be his "baby," giving up some control wasn't as tough as he expected. "There's a point at which a wise man asks for help," he says. For the wise entrepreneur, that point is often sooner rather than later.

Karen E. Klein is a Los Angeles-based writer who covers entrepreneurship and small-business issues.