It’s a common scenario and a self-defeating cycle.
But Dick Zalack says it’s easy to understand how small business owners become cemented in counterproductive practices that keep them focused on creating income — rather than wealth — for their companies.
“Ninety-five percent of business owners aren’t running their companies — the company is running them,” says Zalack, president of Focus Four, an organization that helps entrepreneurs, executives, managers and salespeople achieve breakthrough goals.
“The ultimate goal of the business owner should be to let the workers do the work, and shift to the leader role to ensure the future viability of the business. The sole responsibility of the owner is to create wealth, not income,” he says.
Zaklack acknowledges that when most entrepreneurs start a business, they become proficient as “the producer.” They also handle details that staff members would otherwise perform.
Eventually, they recruit employees to help them do the work. But since they haven’t implemented training programs and workflow processes, they micromanage and fail to delegate.
“Now they’re working harder because they have employees to support, and they hit a maintenance mode where they’re trying to maintain the operation as opposed to growing it. Their focus is on efficiency — how to get the work done — and on the bottom line profit — how to control expenses,” he says.
To build a business that creates long-term viability and wealth, the owner must assemble a capable staff, says Zalack, emphasizing that the owner must recruit and develop leaders who can, in turn, develop other leaders. Investments must also be made in systems, processes, training and technology that allow the business to function without the owner. This is to ensure that, instead of doing the work, the owner can focus specifically on finding opportunities to do business, not manage it.
Here is Zalack’s nuts-and-bolts approach to achieving those goals.
Personal inventory. Write down all the tasks you do yourself that don’t make you money, such as tracking fees and commissions, assembling sales materials and completing paperwork. Next, write down all your talents and proficiencies that make money for your company, for example, your salesmanship and leadership.
Restructure your workday. Discipline yourself to stop doing the tasks yourself that you should be delegating to someone else. Let your team do its job, and focus yourself only on moneymaking activities at which you’re most proficient. Your goal is to fill solid blocks of time doing nothing but those things that make you money.
Think strategy. Stop thinking in terms of tactics. Forget about how the work is getting done and how much money you’re making. Instead, become a strategic thinker. Focus on what you’re trying to accomplish: building a business with long-term viability. Take stock of your company and create goals for its short- and long-term future.
Act proactively. Rather than reacting to fix problems as they arise, proactively implement capabilities and resources to allow your business to perform at a higher, more effective level, whether it’s a new system, a new technology or new employee.
Don’t row — steer. Foster your new attitude of being a leader instead of a producer. Instead of rowing the boat, concentrate on steering the ship. How to reach:
Focus Four, (330) 225-0707. Zalack’s book, “Doing Business Versus Building a Business” (Praxis Publishing, $12.95) is available through his Web site, www.focusfour.com.
