Why Working "On" Rather Than "In" The Business Is The Most Effective Way For Business Growth

Working on the business rather than in the business is essential for you to know how to play to your strengths if you want your business to be profitable.Micromanaging everything is a piece of cake.You may believe that you are capable of accomplishing tasks more quickly and effectively than others.Even if that's the case, the time you're spending doing tasks that could be done by someone else is time you're not spending running your company.You aren't being an effective leader if you get bogged down in trivial matters that your employees could be focusing on.

Identifying issues and delegating solutions are your responsibilities as a business owner or manager.Setting goals and planning for the future are your responsibilities.You are the only person in your company who will be truly motivated to grow your business.Delegating tasks that can be delegated saves you time that you could be spending on more important tasks like planning and strategizing.

This is why it's so important to focus on your business, rather than your business working for you.When it comes to the big picture, you are in charge.Whenever you see a problem or an opportunity for improvement, delegate the work so that you can remain the problem solver and visionary that you are required to be.It may take some time to get used to, but your employees will appreciate the trust and responsibility you give them, and you will quickly discover that you can do the job of leading your business that no one else can!

Working "On" The Business Rather Than "In" The Business

COPYRIGHT_MARX: Published on https://marxcommunications.com/working-on-the-business-rather-than-in-the-business/ by Keith Peterson on 2022-02-21T02:35:26.586Z

Owners and founders of businesses are often referred to as working "on" rather than "in" the company.

The premise is straightforward, to say the least.

It's your job as a business owner to hire the right people, place them where they'll be most effective, and manage the company from the top down.

Every business owner knows that this does not happen quickly or easily.

Honestly, it's hard to get a grip on.

Most small business owners feel like they are driving the business forward by themselves.

The business will come to a grinding halt if you don't keep moving.

In order for you to truly be working "on" the business rather than "in" the business, there is still some work to be done.However, business owners are typically deterred from making this change for the following three reasons:

• Cashflow
• Talent
• Ego

Each of them has its own unique set of obstacles.You need to figure out which ones relate to your business before moving on to the next phase.Owners and founders of businesses are often referred to as working "on" rather than "in" the company.

The premise is straightforward, to say the least.

It's your job as a business owner to hire the right people, place them where they'll be most effective, and manage the company from the top down.

Every business owner knows that this does not happen quickly or easily.

Lack Of Cashflow

In the first place, managing cash flow is a major logistical issue.

The size and maturity of your firm will determine whether or not you can afford to pay someone to undertake work that you can do "for free."

There are two options here.

The first scenario is that you're seeing a brief blip in your company's growth.

There is a possibility that if this is only a short-term problem, you may have to simply develop your firm to the point where it is financially viable.As an example, if your firm increases by 20%, you'll be able to afford to hire an operations person right now.

This is a common occurrence for most firms.Optimist did, and for the last few difficult years, we teetered on the precipice.

As a result of this year's financial stability, we have decided to make this position a permanent one.Katy, thank you!

Another possibility is that this is a problem that affects the entire country.

In the near future, it's feasible that your business model won't create enough cashflow to replace or offload you completely.

Now things really start to go downhill.

This is a common route taken by many budding entrepreneurs.Rather than escaping, they build a prison cell—a task that they can't leave.

As a result, you'll never be able to make the leap from working in the firm to running it without going bankrupt first.If this is the case, you'll need to put in a lot of effort if you want to get out of the daily grind.

• Rethink your business strategy.
• An increase in your fees is necessary.
• Cost-cutting measures to consider
• Ascend the social ladder
• Make a complete 180-degree turn

If you're constructing a new product, you'll have a wide range of alternatives to choose from here.

Adding extra overhead would have been prohibitively expensive because our rates were too low and our margins were too thin.

Changes were required.Had to raise our prices, increase minimum retainers, and incorporate more profit into services.

Progress over the past few years in:

• Increased minimum engagement by 100% (from $5k/mo to $10k/mo)
• Increased effective billable rate by ~25%
• Limited range of services to focus on our highest-margin work
• Started charging more for upfront research and onboarding
• Let go of low-margin clients to bring on more profitable ones

These weren't simple or quick adjustments to make.It took an extremely long time.

So, give it your best shot here.

Are you on a route that will get you to where you desire?Or are you doomed to a lifetime of manual labor?

Lack Of Talent

Another major problem is a lack of skilled workers.

Some businesses simply lack the talent necessary to transfer or delegate critical facets of their operations to others.In some cases, this is due to your team's inexperience.They may be unable to perform their duties because they lack the necessary training or experience.

If your company is suffering from a talent shortage, you will have to spend a significant amount of time and effort recruiting and training new employees.As a founder, this is usually the last task to be delegated.

However, you must exercise caution.

A lack of talent can be mistaken for a lack of ego.

There's a risk that you'll convince yourself that no one else on your team, or even in the world, is up to the task you've set for yourself.It's either that, or they can't do it as well as you do.

It's one of those roles where it seemed impossible to find a replacement for if not impossible.

It is stated in the framework that:

• Hire a person who can perform 70% of the work.
• Give them an additional 20% of your time and effort.
• Be content with 90% of the results.

For two reasons, this has been beneficial:

• There is a good chance a person won't be able to replace himself with someone who has all of the same skills and knowledge that he does.However, that's fine.
• It is clear that it will need a lot of time to train and retrain the strategists.Many hours have been spent documenting and creating workflows to help the team improve their skills and perform at a level consistent with the service providing to clients.

Everyone, on the other hand, has a unique set of abilities and life experiences.It is not reasonable for anyone to assume that they can jump right into our strategist role without significant investment of time and effort to get up to speed.

In all likelihood, your lack of confidence in your ability to find a replacement is due to your unwillingness to face the realities of hiring and your failure to put in the effort necessary to make that person successful.

In order to accomplish this, you must:

• Defining clear procedures for the most important tasks
• Maintaining and documenting work processes
• Training and onboarding should be prioritized.

Setting people up for success by identifying essential skills and non-negotiable experience levels

It's also important to remember that you need to invest in the development of your workforce.

The "Great Resignation" era is upon us.Many companies are struggling to compete for the best and brightest employees, and entrepreneurship is on the rise.

If you treat your employees like cogs in a machine, they'll treat you like one in return.

In some cases, this could be a viable business model that expects a lot of turnover.

When it comes to key positions in your company, you need to look at the big picture.If you want these people to remain in your business and perform essential functions, you must pay them and treat them as such.

Ego

Entrepreneurs' egos are the most common sources of blockage.

Your company's and your reputation's success in the service industry is often directly tied to your personal "brand," your skills, and your past experiences.

To put your trust in someone else is a bit nerve-wracking.

However, ask yourself a simple question: Are you attempting to maximize your own time?Alternatively, are you trying to start a company?

Neither of these are the same thing.

Being able to control how much time you spend on a project pays off.

In the end, though, it's going to be all about you.Involvement will always be present.As a result, you'll always be a snag in the system.

It's important to separate your personal identity from your company if you want to build a successful business.You must gradually relinquish control of various aspects of the business to someone you can rely on.

Consider what your company will look like in the future as a way to prove this to yourself.

Imagine what it would look like if it grew 2, 10, or 100 times its current size.

A task of this magnitude might be beyond your capabilities.

If not, you'll need to come up with a strategy for bringing in someone else to handle this part of the business.

Do you believe that Elon Musk inspects each Tesla that leaves the factory?

No, there isn't.It's not possible in any way.

So, here's the takeaway: Honesty is essential if you want to move from working in your business to working on your business.

That which truly hinders your progress is:

If you want to run a business, don't let your ego and fear keep you in a job.

About The Authors

Keith Peterson - I'm an expert IT marketing professional with over 10 years of experience in various Digital Marketing channels such as SEO (search engine optimization), SEM (search engine marketing), SMO (social media optimization), ORM (online reputation management), PPC (Google Adwords, Bing Adwords), Lead Generation, Adwords campaign management, Blogging (Corporate and Personal), and so on. Web development and design are unquestionably another of my passions. In fast-paced, high-pressure environments, I excel as an SEO Executive, SEO Analyst, SR SEO Analyst, team leader, and digital marketing strategist, efficiently managing multiple projects, prioritizing and meeting tight deadlines, analyzing and solving problems.