Growth Secret: Working on Your Business vs. in It
Entrepreneurs are typically overachievers who direct a laser-like focus on their business. Many feel responsible for managing the smallest details and responsibilities.
But while some early-stage businesses can’t afford much of a payroll, there’s a significant risk to the growth of any business in which the owner continues to play too big a role in day-to-day operations. It’s what’s known in business coaching circles as working in your business instead of on your business – as described by author Michael Gerber in his 2004 bestseller “The E-Myth Revisited.”
At Kirsch CPA Group, we have seen it more times than we can count: a small or mid-sized business owner is so focused on the day-to-day demands of operating the business that the larger picture of how to ensure the business will still be viable in five years gets shortchanged.
Wear too many hats for too long and you can find that instead of growing a business, you’ve become the business. It’s exhausting and it can leave your business devalued and struggling to grow.
The Phases of Business Ownership
Outlined as a hierarchy in the book, Stark Naked Numbers, by Jason Stark, the roles that business owners tend to play often come in phases. From the “technician” who basically does the work that’s being sold to customers to the salesperson, manager and marketer, many business owners struggle to find the time to play the role of business owner because they are too busy wearing all the other hats.
So how do you make the transition from playing all the parts to focusing on the strategies you can use to grow your business? It starts with your accounting processes. With clear visibility into your profitability and cash flow, you can begin the process of putting the right people into all the roles you’ve been trying to manage alone.
If you don’t have the systems in place to scale, you’re stuck, and so is your business. Being involved in every aspect of your business makes it dependent on you, a strain on your work-life balance, and a damper on your business valuation as well. After all, a business that can’t operate without you can’t be sold unless you’re part of the package too.
Scaling Your Accounting System
The first thing to scale is an accounting system. It’s the tool that will empower you to make the best decisions for yourself and your business, including knowing when and how to start adding to your team.
While you may think you can’t afford outsourced accounting help, a full-time bookkeeper generally costs more and won’t have the same breadth of experience you can tap into with an outsourced team. Employees can also get caught up in day-to-day tasks, just like you, and may not see the big picture as clearly.
Outsourced accounting help can let you step back, get out of the weeds, and provide you with insights you need to chart the growth of your business.
Next Level Accounting Services for Growing Your Business
At Kirsch CPA Group, we provide outsourced accounting services to a wide range of small and mid-sized businesses with a holistic approach built around each business and each business owner’s goals.
Kirsch CPA Group services are strategic, comprehensive, and forward looking. They’re built around solid financial data, key performance indicators (KPIs), and deep knowledge of your business.
Wherever you are in the lifecycle of your business, we can provide you with the roadmap you need for getting to the next level of your journey.
Speak to one of our team members today to learn more about the role of holistic accounting and advisory services to get you into the role you were meant to fill.
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