Working ON the business
O.K. were starting off with one of those cliché phrases – but one of the biggest issues I have seen affecting business profitability, growth and quality of life for business owners is the old working “on” vs. “in” business concept.
So, what does it mean and what is the difference?
Most business owners’ work both on their business and in the business – the biggest determinant of how you are working as a business owner is a matter of priority, which is usually determined by who is making the most noise, or by where the biggest fire is burning. This is not a way to mange a business, but alas is common in small business environments – the result of being afraid of change, loosing control, or over managing risk, and client/customer perceptions.
While some small business’ may be better off worked in by the owner – or perhaps that’s the way you like it – some are limiting themselves in the long run by taking this approach. The real value of changing your focus is not so much in the day to day operation (although this is important), but in ultimately building business value, improving the operation, ongoing profitability, reducing your business risk and improving your quality of life.
If you are working “in” your business you are performing the day to day work, and at the same time resolving the problems that arise from your customers, vendors, employees, etc., although the business continues to operate, and maybe make a good profit – there is little or no planning, leverage, educational development, client development or staff development. Over time you, the business and your staff suffer because of these factors, commonly, the business becomes stagnant over the course of several years and it becomes harder for the owner to make change – or to realize value from the business.
As you continue to work “in” your business the only way to keep things going as they are is to work more hours and attempt to keep abreast of everything. This is a sure-fire recipe for owner burn-out and when this happens no one wins.
When you are working “on” your business you have time to spend on planning and development issues and to perform strategic vs. tactical thinking. You spend more time with your staff and clients/customers. You develop more friends and contacts within, and outside of, your industry. You attend community events and organizations. As a result of these and other activities you refine and improve your business process, develop new business ideas and customers. Most importantly you stay refreshed and improve your quality of life.
So how do you change your focus? It won’t be easy, and it won’t happen overnight – there needs to be a transition process. Some of the required steps include:
- Systemizing or establishing your key business processes;
- improving your coaching and mentoring skills;
- giving your employees more latitude – and knowing they will make mistakes along the way;
- developing systems to manage and measure work and work product and;
- changing attitudes and expectations of clients and customers.
Most business owners discover that giving their employees more responsibility results in the employees rising to the challenge, developing in their career and profession and becoming better at what they do. Conversely, customers learn to rely on someone other than the owner, which in many cases results in better customer service and results. With the right management and measurement tools in place further development of employees and customers – and your business becomes possible.
Call TLB if we can help you work “ON” your business. We offer experience and insight into identifying and improving business process and metrics and improving business value. Posted by Rich Bienvenue