Top 10 Strategies - Working ON vs IN the business

The distinction between "working on the business" and "working in the business" is crucial for business owners to understand in order to strategically grow their enterprise.

There are downsides, risks, and opportunity costs associated with being overly engrossed in these activities, especially for business owners who want to grow and expand their enterprises:

1. Limited Strategic Vision: Missing out on long-term success or sustainable growth due to a lack of strategic planning and foresight.
2. Dependency on Owner's Presence: Limited scalability and potential hindrance to business growth due to overdependence on the owner's involvement.
3. Time Constraints and Burnout: Missed opportunities for personal growth, innovation, and exploring new business avenues due to time constraints and burnout.
4. Inefficiencies and Lack of Innovation: Missing out on implementing new technologies, improving processes, or developing innovative products/services that could drive growth.
5. Limited Focus on Business Development: Missing potential growth opportunities, expanding customer base, or entering new markets due to a lack of focus on business development initiatives.
6. Difficulty in Attracting and Retaining Talent: Missing out on acquiring skilled employees who could contribute significantly to the business's growth and success.

Understanding these downsides, risks, and opportunity costs associated with being excessively entrenched in day-to-day operations can motivate business owners to shift their focus towards strategic planning, delegation, and fostering a more scalable and sustainable business model. Balancing both aspects—working in and on the business—can optimize efficiency, drive growth, and ensure long-term success.

On the other hand, working ON the business involves taking a step back from the day-to-day operations and focusing on the strategic aspects of the business. This includes activities such as long-term planning, setting goals, developing business strategies, refining processes, identifying opportunities for growth, analyzing market trends, building partnerships, and ensuring that the business is aligned with its overall vision and objectives. Essentially, it's about working strategically to drive the business forward rather than getting caught up in routine tasks.

Transitioning from working in the business to working on the business requires a shift in mindset and approach. Here are the top 10 strategies that can help business owners make this transition:

1. Delegation and Empowerment: Identify tasks that can be delegated without compromising quality. These might include routine administrative tasks, customer service inquiries, or certain operational responsibilities. Train and empower your team to take ownership of delegated tasks. Provide clear guidelines, training, and resources necessary for them to succeed. Encourage a culture of responsibility and accountability among employees, allowing them to make decisions within their areas of responsibility.
2. Set Clear Goals and Priorities: Define both short-term and long-term goals for your business. Ensure that these goals are specific, measurable, achievable, relevant, and time-bound (SMART). Break down larger goals into smaller, actionable steps. Prioritize these steps based on their importance and impact on the overall objectives. Regularly review and adjust goals as needed to align with market changes and evolving business needs.
3. Develop Systems and Processes: Document and streamline operational processes. Create standardized procedures for routine tasks to ensure consistency and efficiency. Use project management tools or software to organize workflows, track progress, and ensure that tasks are completed on time and within budget. Continuously refine and improve processes based on feedback and data analysis to optimize efficiency.
4. Time Management: Practice effective time management techniques like time blocking, where specific time slots are allocated for tasks related to strategic planning and decision-making. Prioritize tasks based on urgency and importance. Use tools like Eisenhower's Urgent/Important matrix to categorize tasks and focus on those that contribute most to strategic objectives. Minimize distractions during dedicated work periods by setting boundaries, using productivity apps, or working in a quiet environment.
5. Hire a Coach: Identify areas where you lack expertise or where your time is better spent elsewhere. Consider hiring specialists or consultants to handle these areas. Collaborate with professionals who bring unique skills or perspectives to the table. This might include marketing experts, financial advisors, or IT consultants. Ensure clear communication and expectations with hired experts to maximize their contributions to your business.
6. Regular Strategy Review: Schedule regular strategy review sessions, whether monthly, quarterly, or annually, to assess the progress toward your goals. Analyze market trends, consumer behavior, and industry developments. Use this information to adapt and refine your business strategy accordingly. Involve key stakeholders in strategy review meetings to gather diverse insights and ideas.
7. Invest in Technology: Identify and invest in technology that automates repetitive tasks, streamlines operations, and provides valuable insights. Implement customer relationship management (CRM) systems, project management tools, accounting software, or analytics platforms to improve efficiency and decision-making. Stay informed about technological advancements relevant to your industry and assess their potential impact on your business.
8. Networking and Collaboration: Attend industry-related events, conferences, and workshops to connect with peers, potential partners, and industry leaders. Actively participate in industry-related forums, associations, or online communities to exchange ideas, learn from others, and identify potential collaborations or business opportunities. Foster relationships with complementary businesses or professionals that could lead to mutually beneficial partnerships.
9. Continuous Learning: Invest in your own development and that of your team by attending seminars, workshops, webinars, or obtaining certifications relevant to your industry. Read books, articles, and research papers to stay updated on industry trends, best practices, and innovative strategies. Consider mentorship or coaching programs to gain insights from experienced professionals and learn from their successes and failures.
10. Delegate Financial Management: Hire qualified financial experts or consult with financial advisors to manage financial aspects such as bookkeeping, budgeting, cash flow analysis, and financial reporting. Regularly review financial reports and performance metrics to make informed decisions about investments, cost-saving measures, and growth opportunities. Ensure compliance with legal and regulatory requirements by having professionals who stay updated with changes in tax laws, accounting standards, and financial regulations.

Making the transition from working in the business to working on the business isn't an overnight process. It requires commitment, strategic planning, and a willingness to let go of certain day-to-day tasks. However, by implementing these strategies gradually, business owners can create a more scalable and sustainable business model while freeing up valuable time to focus on strategic growth and development.

Remember, while it's crucial to delegate and focus on the bigger picture, maintaining a pulse on the day-to-day operations is equally important to ensure that the strategic decisions align with the practical aspects of the business.

By implementing these strategies and fostering a culture of innovation and strategic thinking within your organization, you can gradually shift your focus from working in the business to working on the business, thereby driving sustained growth and success.

Joe Graci is a multi-exit Business Builder committed to helping other Business Owners address their growth challenges & avoid costly mistakes through 2 programs: (1) Conquering Business Owner Dependence and (2) The Exit Minded Growth Plan .