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Point of View: October 2009
Working On Your Business, Not In It |
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Written by Sue Fredericks
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Running your own business is no easy task. While many people start out on their own with the vision of opening the “perfect” business and having their “dream job,” in truth, most people end up creating jobs for themselves where they have to work harder than ever, instead of good businesses. For this month’s point of view, I thought I’d share one expert’s view on how to grow your business by stepping outside of it.
Michael Gerber, author of The E-Myth, The E-Myth Revisited and In the Dream Room, believes most business owners end up working harder because of a concept called "entrepreneurial seizure.” He suggests, “the initial excitement of independence often associated with getting rid of the boss, is fueled by a flawed understanding of what running a business on your own means.”
Gerber suggests that most small businesses are started by what he calls “technicians” and not true entrepreneurs. The difference between the two lies in how they go about building their businesses.
The technician believes that because he can do the work, he can turn that capability into a business that frees them from the boss. The graphic designer creates a graphic design business, the cook starts her own restaurant, the florist opens his own floral shop, etc. But rather than free themselves from the boss, they have become their own bosses – doing what they know how to do, but in greater volume, and perhaps on a larger scale than before. They’ve created a business that works because of them.
The entrepreneur on the other hand, makes the transition from working for someone, to working for themselves differently. Entrepreneurs invent businesses that work without them.
So the key, it would seem, is to create a company that works without you, rather than because of you. But how do you accomplish that? How do you transform from a technician into an entrepreneur? In a word: systems.
Systems are at the heart of every business, and are very closely tied to how successful a given company will be. Franchises like McDonald’s and Dell Computers tend to work well because they offer customers a consistent experience. They are able to do this because they have good systems in place that allow their owners to be entrepreneurs; that is, focus on growth and new ideas and directions for the company to head in, and not technicians who are on site every day ensuring that day-to-day operations are properly carried out. In short, good systems allow owners to work on their business, instead of in their business.
Look at your current business scenario: Are you an entrepreneur, or a technician? If you took yourself out of the business, would there still be a business?
In order to work on your business, you’ll need time. Often to have time, you’ll need help. In order for your help to be effective, you’ll need systems. With good systems in place, you’ll be able to focus on other aspects of your business, knowing that your employees have a clear idea of what’s expected from them – and of them – when it comes to running and maintaining the business without your direct involvement. The E-Myth suggest these guidelines for a systematized business:
- Develop your primary aim for yourself first. Figure out what you want from life.
- Decide what you want your business to do for you.
- Define how the business and different departments and systems will look and interact with each other.
- Look at how the business will be managed to produce optimal results.
- Set up guidelines for how to hire, maintain and get the best from your key assets: staff.
- Create a strategy so you can consistently get the right new clients and give them what they want.
- Ensure that you have a consistent value delivered to your consumers.
- Set up your shop with systems that are simple and effective to follow.
- Keep all your systems documented in a systems manual that everyone uses.
When you learn to view your business both as an entrepreneur and a technician, your business will run better. When you’re able to systematize your business, it will run more smoothly. And when you’re able to hire others to watch over and improve those systems, your business will benefit again. You’ll be able to freely live out your “dream job” as owner of the “perfect” business. And who knows what else you’ll be able to find time to work on.
Point of View appears regularly in CF and offers our readers the opportunity to hear the perspective of other industry members. If you would like to suggest a topic or be part of the Point of View column, please contact Sue at
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