Don’t let your business fail (an excerpt from Small to Great) – David Naylor
Only around 4% of businesses survive beyond the initial 10-year
period, and the survival of your business beyond that 10-year period
depends on this simple premise: that as the owner, you progress
from working in the business to working on the business.
For instance, you may need to progress from being a person
doing the actual work – a technician – to becoming a person
who’s involved in managing the work. If you can’t or don’t hire the
technicians to do the work – so that you can get on with managing
the business workflow, clients and your systems – then you may join
the growing list of businesses which fail.
As most small business people are trained as technicians in
their respective line of business, it’s a challenge to shift their focus in
this way – but it is critical if you want to succeed.
The ultimate goal is to create a business that works so that the
owner doesn’t have to.
Therefore, the idea is to develop a business that gives the
owner/s a sustainable cash flow and dividend, and brings enjoyment
to their lives rather than despair. This is a business that works
without the owner. Instead, the owner’s role should be simply to
ensure that the systems are working and the business is getting the
best out of its people.
To achieve this, the first thing that needs to change is the
owner’s way of looking at the business, because the business won’t
change unless the owner changes. As the saying goes, the definition
of insanity is expecting a different result, but doing things the
same way – but nothing will ever change if nothing changes.
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