There is a huge distinct difference between "the business" and the "technical side" of the business. The business as a whole is the product not the services or things the business outputs. That is why good companies get "blue sky" when they sell rather than just asset based price.
If you are one of those business owners that only do the technical work, you really are not a business owner; you just have a job.
E-Myth and Micheal Gerber have a great principle called "Working On Your Business, Not In It." A good business creates a model that can run effectively and profitably without any one person. So what should you be doing?
- Owners should create the vision and establish the values and behaviors of the company. In addition, the owner should set the strategy to win for the company and communicate it to the entire organization. Good owners also are involved in the people process to ensure the right people are on your bus.
- Managers should be getting the results through others. This includes systems development, supervising, training, hiring, recruiting, and the orchestration of others.
- Technical work is the hands-on direct work of producing products or services.
Here is a guide for what you should be working on:
- CEO should be 90% on entrepreneurial work, 10% managerial work.
- Managers should be 20% entrepreneurial work, 75% managerial work, 5% technical work.
- Employees should be 5% managerial work, 95% technical work.
Make sure you are working On your business and not In your business.
