The Power of Working on your business and Not In It
For every business owner, the line between working on your business and working in it is a fine one. This line, however, marks the difference between just surviving and truly thriving in the business world. Russell Eastwood, the director of Eastwood & Co, is a passionate advocate of the concept, so much so that it has become the motto he emblazons on his car.
As business owners, we are all guilty of getting stuck ‘in’ the business. This is when we have our heads down, mired in the minutiae of daily operations. Our vision is limited, our perspective narrowed. It’s like wearing blinkers – we are so involved in the day-to-day tasks that we neglect to lift our heads, take a step back, and see the bigger picture.
Russell compares the roles we assume in our businesses to hats or seats on a bus. Which hat are you wearing? Which seat are you in? Are you driving the bus, or are you too busy serving refreshments to the passengers? By being too invested in the operational aspects, we may lose sight of our business’s long-term strategy and vision.
The solution is to shift your focus from working ‘in’ the business to working ‘on’ the business. This involves focusing on strategic planning, big-picture thinking, and establishing systems that allow the business to function efficiently without your constant input.
Five key benefits that come from working on your business
1. Strategic Planning:
Working on your business allows you to take a step back and see the bigger picture. It enables you to focus on long-term strategies, plan for growth, and set the future direction of the business. When you’re consumed by the day-to-day tasks, it’s challenging to find time for strategic planning, which is vital for the company’s growth and success.
2. Improving Business Processes:
If you’re always in the trenches, you may not see inefficiencies or realise there could be a better way to perform certain tasks. Stepping back gives you the opportunity to scrutinise your business processes, identify bottlenecks, and implement improvements.
3. Talent Development:
When you transition from working IN your business to working ON it, you create space to nurture and develop your team. Investing time in training, coaching, and mentoring your staff not only enhances their skills but also fosters a more engaged and motivated workforce. It ensures that your business can operate successfully even without your constant involvement.
4. Succession Planning and Value Creation:
Business owners who spend their time working ON the business can develop a succession plan and build a business that has value beyond themselves. As Russell Eastwood points out, many business owners who are ready to exit their business find there’s no value in it because it cannot function without them. Working on your business means setting up systems, processes, and a reliable team that can keep the business thriving, even in your absence.
5. Better Work-Life Balance:
Working on your business also allows you to create a better work-life balance. When you’re not entangled in the minutiae of everyday operations, you have the freedom to take time off, spend time with family, pursue hobbies, or even start new ventures. It reduces the risk of burnout and increases your overall satisfaction with your role as a business owner.
Stepping Back to Leap Forward: The Benefits of Shifting Your Role in Business
The advantages of such a shift are manifold. It paves the way for better time management, allowing you to delegate operational tasks and focus more on strategic growth activities. It creates a business that can stand on its own, one that doesn’t cease to exist the moment you step away. In other words, it transforms a business from being a demanding job into a vehicle that can help you achieve your personal vision and ambitions.
Furthermore, a business that runs smoothly without your constant oversight is a business that holds more value. Eastwood observes that many business owners, when they reach the point of wanting to exit their businesses, find they have built entities so dependent on their presence that they can’t be sold or passed on. In essence, they’ve created jobs for themselves, not thriving, independent businesses.
Working on your business, however, avoids this pitfall. By establishing a structure where the business pays its shareholders, and staff without your day-to-day involvement, you are creating a legacy. You’re building a business that not only serves you now but also provides an exit strategy for the future.
Let Eastwood & Co help you shift your business role
It may sound daunting, but remember, you don’t have to do this alone. Eastwood & Co is here to guide you on this journey. We offer professional advice and strategies to help you transition from working ‘in’ your business to working ‘on’ it. Our expertise will help create the necessary space for you to shift your perspective and approach to your business.
Transitioning to working on your business is a key step towards ensuring sustainable growth and long-term success. Yet, this shift can be a challenge for many business owners. This is where Eastwood & Co can provide invaluable guidance. Our team can help you extract yourself from daily operations. We can help you create the space for you to work ON your business, rather than being consumed by it. Let us help you navigate this transformative journey towards achieving your personal vision and the financial success of your business. Contact us today to learn more.