Flawed Philosophies in Owner-Managed Businesses
1. Chasing revenue is not growing your business. Owners need a model to add value to customers. They often take baby steps – 2 forward/1 back; growth is organic. Don’t have vision when focus is on CASH FLOW verses CUSTOMER. End result is the grab is too soon, not enough to sustain them for the long haul. CASH FLOW is short term, not productive, reactionary, not strategic and won’t get you there. It’s survival vs. thriving. Success comes when you include vision and aim higher.
2. Having a business is not the same as having a job. “Entrepreneurs only work half-time: You can work any 12 hours of the day you want.” Owners often have dated work ethic legacies (too labour intensive, head down, pride) that hold them back. They set up the wrong model and focus on operations, with no delegation. “With every pair of hands you get a free brain!” The key to happiness is letting go. Elevate your role, and give yourself permission to be strategic about your work – to think. How much “Working On” time do you have compared to “Working In”your business time? What could your business become if you realized the dream of it? If you’re self- employed, you might just work for the worst boss in the world. Working “In” your business is all about resource allocation, customer service, efficiency – but working “On” is all about possibilities – what it could become. You do that by focusing on Marketing – building your brand. Small biz is unique, adaptable – they can adapt quickly and change direction easily. Who is your best target/best customer? Should you bundle or unbundle your products and services?
3. It’s bigger than you because it’s all about the customer. In spite of your perception that you created a business because you wanted a livelihood for yourself and family, the real purpose of business is to serve the CUSTOMER. Don’t focus on what you’ve created – look at what the customer is doing. Safeway turned into a deli once cooked chickens began selling faster than they could make them.
Copyright Phil Symchych 2012. All rights reserved.