Working ‘on’ instead of ‘in’ your business

By | August 6, 2007

At a recent event in Aspen, Colo., Michael Gerber, the author of “The E Myth,” and “The “E” Myth Revisited” spoke about the importance of living our dreams.

Gerber, now 71 years old, challenged the audience to release the “work” we are supposed to do before we die. Gerber stressed the importance of asking ourselves the key questions of who we are, and what the meaning of our life is. Interestingly, his twist was that the answers are not the key; instead just asking the questions has the most impact on us.

For those unfamiliar with Gerber’s work, his book, “The E Myth,” which stands for Entrepreneurial Myth, was published in 1986, with more than two million copies sold. Gerber has recently written a series of other “E Myth” related books. His consulting firm is called E Myth Worldwide Inc., specializing in coaching, training and other services for small businesses.

Gerber’s basic philosophy is that just because some business owners are experts in the technical work of their business, does not mean they are able to build and run their business. The fatal assumption made by small business owners is that individuals who understand the technical work of a business (how to be a plumber or sell insurance) will inherently know or quickly learn how to run that sort of business.

This is rarely the case. Small business owners will soon realize that they eventually need to acquire business management and development skills. They can get this from an outside source (consultants or managers) or they will need to develop these skills themselves.

When Catherine first read this book almost 20 years ago, she was excited about how applicable it was to Oak & Associates’ business consulting services We have used the general philosophy when working with our clients ever since.

Agency owners who have lasted in business more than three years and have grown bigger than “Ma & Pa” shops, have learned to work “on” the business, rather than being the person doing all the work “in” their business. These owners have learned to delegate tasks, while others sell products or services that have been “systemized” that don’t require the owner’s input. These owners have learned to leverage themselves as much as possible.

The following are some of the highlights of Michael Gerber’s philosophy of running a small- to medium-size business.

Rules of the Game
Promises that owners must make to themselves include:

  • You have to want to be the best.
  • Practice at management of the business, a lot.
  • To become a “master,” model the experts and do it their way (or model the best aspects of your competitors).
  • Remember, the sale shows up only when you are called to do it.
  • Take advantage that others are working “in” their business and not getting ahead.
  • Develop your own systems for selling, marketing and management.
  • Keep in mind that everything is connected by just one decision.
  • In order to awaken your business, you will need to “transcend” it.

Entrepreneur versus the technician
The founders of most companies are not entrepreneurs. They are technicians who suffer from an “E” seizure. They began to build the business around them. The technician only sees the mechanics of the business — its product or service. However, that is 180 degrees away from truth. Successful companies are built around the product or service, not the person. Systems and procedures are developed to keep it running by the employees, not the original founding technician.

Follow the example of Ray Crock when he bought the franchise rights to MacDonald’s. He did not work “in” MacDonald’s. He used his mind and imagination. He said, “I will create the most successful small business in the world!” He developed prototypes, systems processes and procedures to allow others to create the products and services. That is the definition of an Entrepreneur.

The “E” life – Who am I?
The answer is irrelevant. Everyone needs to discover the question so he or she can find the meaning of life. The question has to live in all that you do. Otherwise, you only discover more problems.

For many business owners, the business is the biggest opportunity of their life. They need to change the way they think, so that the company and their life are both successful.

It is imperative to go to work “on” the business not “in” the business. The key is to transcend the business. Reality is that the business is not its owner, it is just a business. Are you an insurance sales person, or an insurance agency, or are you truly a person who makes money in the insurance business?

Tell your story — that’s the magic. It is the story of your dream and vision, which creates a brand and soul to your company. What words do you use to describe what you do?

With The “E” Entrepreneurial Myth, you need to define “What is the story of our company?” Make people commit to do it your way or you won’t work together!

Oak & Associates has been working with clients to help create a business that they enjoying working “on” or “in” — it’s their choice. Imagine an environment that is positive and motivating. When owners begin to work “on” their business and no longer “in” their business, wonderful things happen.

In our next issue we will focus on setting up Dream Rooms vs. staff meeting rooms, which is a concept that Walt Disney used so well.

Bill Schoeffler and Catherine Oak are partners at Oak & Associates. The firm specializes in financial and management consulting for independent insurance agents and brokers. Contact: 707-935-6565, by e-mail at bill@oakandassociates.com, or visit www.oakandassociates.com.

Was this article valuable?

Here are more articles you may enjoy.

From This Issue

Insurance Journal Magazine August 6, 2007
August 6, 2007
Insurance Journal Magazine

Top Commercial Lines Retail Agencies; Errors & Omissions; Commercial Auto/Taxis/Limos