You’ve probably heard the saying that you need to work ‘on’ your business, not just ‘in’ it. But have you ever considered exactly what that means in practice?
To clarify, here’s a simple distinction between working ‘on’ your business and working ‘in’ it.
With that understanding, here are five essential activities you should be focusing on:
- Prepare a business plan and review it annually—ideally in the last month of your financial year or the first month of the new one.
- Develop a budget and financial forecast for the next 12 months at the same time as your business plan and review these regularly throughout the year.
- Track your actual performance against your plan and budget each month.
- Share the business plan and financial results with owners and your team to ensure everyone is aligned.
- Set aside one to two hours each month for a meeting to review progress, financials, your business structure, and to discuss any risks or opportunities for growth.
Working ‘on’ your business doesn’t require a full-time commitment. Usually, dedicating one to two hours per week, half a day per month for reviewing information and holding your monthly meeting, plus one to two days per year off-site to update your plan and structure, will suffice.
After all, your business exists to serve you—not the other way around. You should never feel like a slave to your business. — Anonymous
It’s also good practice to engage an independent professional to help you establish these routines and keep you accountable, which ultimately drives better business outcomes. Contact us today to learn more about working ON your business.
