What’s the difference between working on or in your business? Most of the Employees works in the business since most have specific duties or tasks to accomplish on a regular basis. Most know what’s expected of them. The “Owners” however, doesn’t have such a clear path and the reason may be that their role and responsibilities are self appointed and, based on our observations, quite different from owner to owner. The result is that many work in the business sometimes and on it at other times. It appears to be a matter of priorities and fires.
All too often the boss spends much of his or her time fighting fires. Rather than an owner working on the business they have become crisis managers. Many sit in their offices and wait for someone to come through the door with a problem that needs attention or resolution — now.
Most owners seem to be pretty good at handling crisis problems. Some even call them “opportunities.” The reality is that the owner has trained his employees to bring all problems that need immediate attention to them. This, of course, takes the responsibility away from the staff and puts it squarely on the owner’s shoulders.
So what would change if the owner started working on the business? First, he would not be the first one in and the last one out.
The owner would be expanding his circle of associates and yes, even friends, outside the industry, spent time thinking about the future and how to use all that knowledge bottled up inside but not exercised because of day-to-day pressures.
“If it can be measured it can be managed. If it is measured it can be improved.” Working on your business should mean that you have the tools to measure and manage and more importantly, your managers have the training to measure and manager those who report to them.
“If we think of the entire business as a car; then in this car the entrepreneur is the driver. He is the one who controls the steering wheel, the break and accelerator, and he is the one who steers the car in the direction of its goal. But can this entrepreneur become engine? Can he become the wheels that move the car? No! These things have to run themselves. If the driver of a car, instead of focusing on the road ahead, focuses on the wheels and the engine, then he will surely crash the car. An effective entrepreneur thus, is one who creates the necessary operational and managerial set-up for the company to run itself on a day-to-day basis. Just like an effective car is one where the engine and wheels run on their own, without the driver having to check whether they are working. “
The Essential Cs for Effective Processes:
5. Commitment - to clients
So we know already that your business needs to move from an Owner-Driven to a Process-Driven business” he summarized.
“But the key question is” Manu began again, “how do you move from ‘Rajan the Self-Employed Owner’ to ‘Rajan the Entrepreneur’?”
a truly successful entrepreneur is one who can recognize that his business has outgrown him. And who can institute the necessary changes in his own mindset and his organization, which will enable it to keep growing in the future.
He also reminded me, that an entrepreneur who cannot see this, or cannot do this, is doomed to fail in the long term. This is because he becomes so singularly focused in the day-to-day running of his business that he fails to identify the long-term factors this will eventually erode his business.
For me, this was a wake-up call; as it should be to all successful entrepreneurs. When we start a company, we do everything associated with it. We are its sales team, its production team, its quality supervisors, its office administrators – everything.
But after growing the company to a certain threshold, if we are still undertaking all of these activities on our own, then two things are happening
– firstly we are undertaking activities that we no longer should be, and
– secondly these activities are distracting us from the more urgent and critical role we need to undertake as entrepreneurs.
Sustainable business growth strategy is a practical approach for achieving top-line growth and bottom-line results. Strategic analysis includes different methods of assessing the current position of the business in the market place.
Two basic methods: Internal Audits – uses data and information generated from within the business, Internal audits may be carried out through recruitment of an outside consultant to look at how the business works and offer an ‘independent’ viewpoint
External Audits – uses information and data from outside the business – such information may be outside of the business’s control but has to be factored into decision making.