You need to know how to generate sustainable profits rather than how to make sales.
Are you spending so much time working IN your business that you never get around to working ON your business?
I would be remiss if I didn't mention that Melissa Zavala also mentioned working ON vs IN your business in her blog Watch Out Your Sales Pipeline May Be in Danger. I talk about E Myth all the time in my entrepreneurs program. Here is my spin on it.
Michael Gerber discusses this in his book “The E Myth Revisited.” The E-Myth or the entrepreneurial myth as described by Gerber incorrectly assumes that the desire of the new business owner or entrepreneur, plus capital, plus a profit goal will result in success. But this has not spelled success for business and the lack of the true understanding of what it takes has caused businesses to fail. Some businesses may survive due to external dynamics and timing but they will become stagnant and the owner will feel like a hamster on a wheel. There is a lack of entrepreneurial leadership.
For example, in the restaurant industry there are numerous great cooks and chefs that feel that because they know how to create a great meal that that they should open a restaurant. The restaurant might open and have sales but the owner might be so consumed with the food details that he might neglect other parts of the business. In most cases the business stops when the owner stops.
Likewise, if you want to build a real estate agency you will need to provide leadership and development to your team. You cannot expect new agents to hang their shingles with you and say you have an organization.
More needs to be done. Michael Gerber highlights some key points in his book. I have found that the enterprises that I have coached and consulted have had success when they have followed the following points.
1. You need a vision for your business. How do you look when you are successful? What is the future of your business five to ten years from now rather than what you are doing today?
2. You need to know your customers now and in the future. What is your unique value proposition; what sets you apart from your competition? How do you get customers?
3. You need to know the business works rather than work done in the business. What processes and procedures are in place to facilitate the smooth operation of the business when the owner is not present?
4. You need to know how to generate sustainable profits rather than how to make sales.
5. You need to know how to structure the business to meet customer needs. You must understand how to build loyal customers.
6. You must know how to hire, motivate, and retain the best people.
7. Do you know how to create a business that works when you are not there.
The real secret behind all of this is not simply having a business plan although you certainly do need a business plan. The real secret is learning how to become an entrepreneurial leader with vision and achievable goals. Leadership is paramount to you personally and to your team. As an entrepreneurial leader you will look at the forest instead of the trees, you will work ON your business rather than IN your business, and you will become the inspiration for your business. Read a similar post on our web site titled WHEN WILL YOU START WORKING ON YOUR BUSINESS?
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Business Coach - Strategic Plans - Sales and Marketing Coach
President Performance Development Strategies
914-953-4458, Armonk NY 10504 firstname.lastname@example.org
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