Forums: Discussions for entrepreneurs and small business.

Corporate jargon is a language unto itself, but the chances are you`ve seen a reference to how someone is working "in" the business, or "on" the business. I`ve seen it in a few posts, but nobody`s explained it. I`ve also seen the usage increasing, so it`s probably a good idea to translate the phrase back into English.

The idea comes from a general split in perspective of how consultants view corporate enterprise. In a nutshell, one view is to look at the stuff people do on a daily basis. The other view is more strategic, based on "where is this whole business going?"

To work "IN" the business, means to focus one`s attention on the daily operations, providing good service, handling problems, and mostly keeping things on an even keel. It means that your attention is on what`s going on "inside" the offices and buildings.

Working "ON" the business, means to take a look "outside" the buildings and offices. It means to step back, examine the overall idea of the business and figure out how to make it a better business generally.

In a microbusiness, single-owner environment (particularly bootstrapping), you come up with an idea. "I`m going to sell Whatnots." Selling Whatnots is your business. Working "ON" the business would mean that you decide what kind of Whatnots, how many models, where they`ll best sell, where you`ll make them, and what related things can you also sell.

Working "IN" the business would be the specifics. A business plan, in my opinion, falls into this category. It`s involved in the detailed, specific operations of the business. Finding a replacement printer, handling the accounts payable and receivable, figuring out where to get a skid of boxes, all are part of working "within" the business.

Customer complaints are another example. To work "IN" the business means to take each complaint, examine it, see how to solve it, then resolve it. That would mean reading email, making phone calls, figuring out the problem, and fixing it.

To work "ON" the business would be to compile a report of all customer complaints, analyzing whether there are an increasing or decreasing number. Then, going beyond that, to examine the entire way your company does business, then to figure out how to dramatically reduce all customer complaints.

I`m not an MBA, so maybe some other business-oriented folks would like to step in here with further clarification. But if we`re going to "go forward," as they say, we should at least all be "on the same page" with what we`re talking about. :-)

Craig,

It is hard to grow a business if you are 100% working "in" it. Most people work "in" their business because by nature, we like to feel important. In other words, it won`t get done right unless we`re there to make sure it is done right. So every fire that comes up, we`re the "fireman" (no offense ladies - I know, there are firewomen - "fireman" is for discussion purposes only) that puts it out. Waaaaaaay too many business owners are firemen. And then they wonder why they end their day and never feel satisfied, never feel like they accomplished anything, the TO DO list is just as long as it was yesterday, AND I will never grow my business because I NEVER have enough time. All "firemen" - this is where you say "Amen".

I believe it is much easier to teach a new dog new tricks but old dogs can learn, too. But a new business has a distinct advantage if they make a commitment not to become a fireman as their business grows. If they do make this commitment, they will have time to work "on" the business as it grows.

What is the easiest way to have time to work "on" the business?

From the beginning, design you company to be "process-dependent" and not "people-dependent." This means writing SOPs from day one. This means involving every employee in the process of writing the SOPs. From day one. And use them - religiously!

How does a company - say a sandwich shop like Jimmy Johns - succeed at franchising? They have the processes documented. McDonald`s did it. Chick-fil-A did it. The military does it. Successful companies are process-dependent, not people-dependent.

When your company is process-dependent and not people-dependent, the owners (and/or key management team members) can go away and they will not miss you. The train just keeps on clicking down the track.

If you`re starting a business, act like you will have 100 employees from day one. Document processes and make sure everyone knows them - front and back. As you grow, you`ll have time to work "on" you business.

JMHO

R@

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Richard Arnold · Key Concept Writers · Business Communication: The "Key" To Success· Law of Attraction Blog · Life Ain`t Brain Surgery Blog

"SOP" being the acronym for Standard Operating Procedure(s). :-D

I heard a really terrific expression, years ago, that brings into even more focus Richard`s story about being a fire-person putting out fires. (Even that`s a jargon expression, meaning continually dealing with always-new problems).

The author asked the reader to determine how many crises they dealt with each day. In the example, the reader said they dealt with many crises each day, sometimes as many as 10 per day.

The author then said, "If you`re handling a crisis every day, then it`s not a crisis anymore---it`s a way of life!"

A crisis (fire, in Richard`s analogy) is by definition an unforeseen event taking place with critical implications to the immediate future. The key here is exactly that: "unforeseen."

Having a process-dependent business means that events dictate people`s actions. It means that when you encounter Situation A, then the situation itself has a "standard operating procedure" as to how to deal with Situation A. (A crisis might be when a new employee can`t find the SOP manual explaining the process.)

I also concur with Richard that too many small business"people" get so engrossed in handling the everyday problems they lose sight of the strategic pathway of growing the business, then eventually selling it or retiring. That`s the "life plan" people discuss.

To work "on" the business means having a larger point of view than the entire business itself. It`s to put the business into context with something bigger---like a life. There`s another good expression that "we can`t understand a system from within or below the system; only from above or outside the system."

Maybe it`s because many entrepreneurs have spent so much time as employees? When they start a business, their intent is to replicate the comfort of an employee position with "someone" telling them what to do all the time. If that`s the case, then "customer orders" and "problems" act as a stand-in for being told what to do.

Richard,

Dead on.   Most owners are simply nothing more than their own employee - they can`t choose what they do that day, whether to improve processes, network with somebody to grow their business, figure out a better way to train employees, create a better inventorying process/system, etc.  They are just slinging sandwiches like the employee beside them.

Most small business people are very shortsighted and see very clearly that if they hire somebody else to sling that sandwich it will cost them money right now - so they do it themselves.  What they don`t see is the much greater cost of not having the time to work on growing their business, improving the systems/processes, etc.  They get trapped on a treadmill being their own employee.  As a result, they are doomed to be hunter-gatherers all their business life, rarely getting to subsistence farming, let alone working "on" the business (having someone else do most of the farming). 

The most successful small business people do just what you say - work as if they have 100 people and are the President (if you have 100, you aren`t slinging sandwiches as the President), and they understand that their job is to take the company from survival (hunter-gatherer), through success (farming), to significance (having the time to have in impact in the world around us).



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Team Nimbus facilitates peer teams who advise each other from their collective business experience to raise profits in less time, so they can focus on the passion that brought them into business in the first place. We help move their business from survival, through profitable success, to significance.

hmm you could be on to something there...

However, I`m under the impression that most entrepreneurs were so even when they were working for somebody else, although the business clearly was not his/hers, we behave is if it were, I know that was the case with me.

ElidS,

I would agree entrepreneurs act that way no matter who they work for, but would still say it is extremely rare for an entrepreneur to think in terms of working "on" the business. 

One of the classic weaknesses of entrepreneurs is the inability to let go of the day to day and become an owner or President of something.  

One type of ent. is more visionary and has an "idea" that requires them to work "on" the business during startup, but usually they`re only working on it because they have to in order to get the idea through the concept stage and into real production.  At that point, most entrpreneurs will get stuck working "in" the business, doing the production. 

The other type of ent. I`ve seen is the "craftsman" - someone who goes into business because they have a particular skill or profession they absolutely love (sheetrocker, lawyer, doctor, chef, model train expert, etc.).  They have no interest in the business side of the business and only put up with it so they can practice their craft - no intention of ever working "on" the business.  So three years into it they are wondering why they`re not having any fun anymore with something they loved going in.  They`ve turned themselves into an employee.

The test is how the business does when the owner is not around for a while -  at some point it should be able to run well based on the processes without the owner standing at the wheel and maybe not even being around more than a few hours a week (although if he/she isn`t thinking about their business more than a few hours a week, it won`t survive - but that`s working "on" it, not "in" it.)




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Team Nimbus facilitates peer teams who advise each other from their collective business experience to raise profits in less time, so they can focus on the passion that brought them into business in the first place. We help move their business from survival, through profitable success, to significance.

Blakeman,

I appreciate the "second" on my post.

I do a lot of consulting in the automotive aftermarket, especially in and around collision repair shops. These businesses are notorious for not having ANY operating procedures to guide their business. Body shops are constantly "putting out fires" all day long. Many body shops are opened and operated by the "craftsman" types Blakeman describes in his last post. I see the results of the "fireman" mentality every day.

But as the song says, "The times they are a changing." Process-think is making its way into this business arena - finally. But it is like pulling teeth. They are coming to their senses kicking and screaming. The ones who are adapting to these tried and true methods will be the ones who will survive the consolidation of our industry. We predict that the current 45,000 body shops will be around 30,000 in less than 10 years. Those they adapt will survive - those that don`t, well, you get the picture.

The body shop business may not interest you. But below is a link to a recent article in one of our major trade pubs where some industry experts talk about the importance of SOPs and becoming process-dependent. The overall message of the story can apply to most any business or industry.

Working Smarter, Not Harder.

Enjoy and have a great weekend!

R@

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Richard Arnold · Key Concept Writers · Business Communication: The "Key" To Success· Law of Attraction Blog · Life Ain`t Brain Surgery Blog

For the most part I have not had any help with my business. With that said, I have actually written SOPs for me to follow. I have also written them incase I am ever in a car accident or some other dreadful thing were to happen to me. My wife helps in the business, but she doesn’t know it as well as I. She has a job of her own.

I wanted a way to direct someone on running my business. Even things like adding product to the website. Since my latest upgrade, many of my SOP docs are out of date and need me to spend more time on them. It causes many hours of typing and analysis to write down, in an orderly and presentable way, how my business functions. By doing this, I have found it to be very revealing about the process and my business itself. I have found problematic areas of conducting my business, which were not mentioned in my business plan. It provided a great opportunity to improve.

I agree it is the people and the process working… not the business. The better I can improve those situations, the more my business will profit. I know there are other issues to a successful business too. But really, it’s about the people and the process.

Now I am hiring a writer. I will create a new document for dealing with potential employees. I will even pass off my style template to them. They will know my font style, size, colors, everything about their position they would need to know in order to do a fantastic job. If I disappear, the writer should not worry about not having a job any longer. The writer will see another person running the business with the same goals as the last person.

I used to spend 5-6 hours of my day writing copy. Now I spend about 1 hour. I used to think I was the best writer for my product… ‘til SuN suggested I should try something different. (I take no offense).

Now that my writing time will be open, I really can look into other things. Of course I hope my investment in the hourly rate for my writer will be fruitful. If it’s not, then I hope I use my widow of open schedule (no longer writing) for something more important.

I love working On my business, but I realize I tend to work In the business. It`s what I have been trained to do my whole life. So I must force myself to "give" the project to someone else so I can work On the biz again.

Great post CraigL


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Vincent Wilcox (a.k.a. KRAKR)
Drummer
My band: Letters Make Words

great article keykon

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Vincent Wilcox (a.k.a. KRAKR)
Drummer
My band: Letters Make Words

Vincent - thanks for sharing your own experience - very well spoken.

Glad you liked the article.

Later - R@

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Richard Arnold · Key Concept Writers · Business Communication: The "Key" To Success· Law of Attraction Blog · Life Ain`t Brain Surgery Blog