Increase your Net Worth by Working On Your Business -- Not In Your Business

In the 35 years I have worked exclusively with closely held businesses, I have yet to meet an owner who did not feel as though he/she was "pushing water uphill" at some point in the development of their business.

Best-selling author, Michael Gerber, describes how an owner can be stuck "doing it, doing it, doing it" by working in their business rather than on their business. In his book, The E-Myth Revisited, Gerber shows how important it is for owners to take stock of themselves and their activities and priorities.

The plight of many owners, that I work with is to work at the daily-grind activities, while neglecting the bigger picture matters (e.g. planning, recruiting, systems analysis, marketing strategy). Gerber further reflects that many owners are not aware of the three qualities they must manifest in order to build a successful business: 1) technical, 2) managerial, and 3) visionary.

I’ve found that you must have the right amount of these qualities at the right time. If, for example, one is extremely technical, with great vision, but lacking managerial capabilities, they may have a business that starts off great, but lacks profitability or loses customers because of disorganization. I once new a great guy who had great people skills but he had no…

Hire people that will fill your voids. You must, however, first become aware of the formula for success. Many business owners play multiple roles in their business and are stuck (often by habit and a false believe they are controlling costs) doing routine work and working long hours. They fail to take time to develop themselves by attending seminars, joining executive dialogue groups with other owners, or becoming involved in outside activities. Their lives are defined by their businesses, and their businesses are defined by them.

Some owners feel like they are in the proverbial Catch 22. They believe they are too busy to make the time required to change the situation that precludes them from making time to develop themselves. There is a way out and it’s called priority management. Take a hard look at what you do and ask yourself, "What damage would really occur if I chose to neglect, defer or delegate this activity?"

I know it is not a matter of time… but priorities. Class dismissed.

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