One of the biggest challenges faced by business owners is finding a balance between being directly involved in running the company and taking a strategic and management approach where valuable time is spent planning the company’s marketing, HR and financial strategies. While you may need to work in your business to ensure that things run smoothly, it’s extremely important to take the time that’s needed to work on your business too – here are a few useful ideas that will assist you in finding the right balance for your business:
What type of business do you own?
In the 1970s, two business scientists from the University of Wisconsin by the names of Filley and Aldag created a framework that allows small businesses to be classified into three groups: Craft Firms, Promotional Firms, and Administration Firms. These categories are very useful in deciding what type of business you are running at present.
- Craft Firms – These include bakeries, service centres, and any type of business where the owner using a specialised skill to generate a product or service.
- Promotional Firms – This type of business is typically owned by an entrepreneur who is excellent at marketing the products or services which the business offers to its clients.
- Administrative Firms – These businesses are usually run strategically, with regular meetings and fixed job descriptions. The responsibility is shared by staff and management and the business slowly develops the ability to run without the owner being actively involved all the time.
Learning to work ON your business
If you recognise your business as a Craft or Promotional Firm, you may be interested to know that businesses of these two types often struggle to grow substantially until the owner takes a more managerial approach to running the company and allows members of staff to take on the tasks of day-to-day administration, client service, and creation of products – simply put, the owner needs to delegate to create a successful business.
Working ON your business means taking a step back and viewing the business from an outsider’s perspective. You may need to ask a colleague or financial advisor to assist you as you study your business to identify how well your marketing, product development, administration, and finance plans are working.
By freeing up your valuable time from the everyday tasks of running your business, you will have the opportunity to create an organisation that is efficient, well-managed and is geared for growth and expansion, laying the foundations for great success.