At the beginning of the Owner Manager Program we ask all the participants to write down why they are there. Here’s what one business owner wrote recently:
“How do I move from working “in” the business to working “on” the business?”
It’s a common phrase, but it’s still one of the most crucial transitions a business owner faces moving forward. This shift is pivotal for scalability, long-term success, and lifestyle. However, many business owners find themselves stuck in the day-to-day operations unable to free themselves.
The goal is to build a business that doesn’t rely on the owner being involved in the day-to-day operations. This will give them the time and energy to focus on strategic development, i.e. working “on” the business.
During the Owner Manager Program we focus on three essential business foundations that facilitate this transition and empower business owners to build a more valuable company.
Let’s look at the three things business owners must focus on (and why) …
1. Develop Clear Systems and Processes
Clear systems and processes form the backbone of any successful business. They provide structure, consistency, and clarity for day-to-day operations. When processes are well-defined, employees know exactly what is expected of them, leading to increased efficiency and reduced errors.
More importantly systems and processes add considerable value to the business. If your business has clear systems and processes, it means that at any one time someone else can step in to continue operations. This may be required when there are staff absences, staff changes, or when the business owner decides to sell.
To develop effective systems, start by documenting key processes, identifying bottlenecks, and seeking input from employees. Explore opportunities to automate and implement AI. Regularly review and update your procedures to reflect changes in the business environment and technology.
2. Build a Leadership Team
No business can thrive without strong leadership. As a business owner, it’s essential to surround yourself with capable individuals who share your vision and can help drive the company forward. Building a leadership team allows you to delegate responsibilities, harness diverse perspectives, and focus on strategic initiatives.
And just the same way that having systems and processes in place can alleviate the owners time, so too can having a strong leadership team in place.
When building your own leadership team, look for individuals who complement your skills and bring unique perspectives to the table. Invest in leadership development and provide opportunities for team members to grow and take on more responsibility over time.
3. Make sure the business doesn’t revolve around you!
Time and time again we see owners that build a business that resolves around them. They are unwilling to let go of key tasks, or don’t take the time to train and develop the people they have employed. In family businesses it’s often the previous generation unable to let go.
It can be hard to let go, but it is essential. Often the biggest bottle neck is you as the owner which is where the Owner Manager Program focuses. If you think you’re the problem, then start with small consistent plans to change that. Review your weekly schedule and the tasks you’re completing and focus on ways to pass your to-do list on to others.
Conclusion:
Developing clear systems and processes, building a strong leadership team, and making sure the business doesn’t revolve around you are three pillars of business success. By focusing on these elements, business owners can further concentrate on working “on” the business rather than “in” it. This shift not only improves efficiency and scalability but also lays the foundation for a more valuable and sustainable business – and a far more attractive investment to future buyers.
As you continue to build your business, prioritise the development of systems and the cultivation of leadership talent. By doing so, you’ll position your business for long-term growth and success in an ever-evolving marketplace.
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