Why do business owners persist with trying to run their own business?
- December 18, 2018
- Posted by: Arron Skillen
- Category: Business plans
Working in the accounting industry for over 13 years has afforded me with the opportunity to observe the operations of hundreds of small businesses. One common theme that runs through these businesses is that the owners are great at what they do; be it as a tradesperson, in product development or in a service offering. But what they don’t do well is understanding how to get the best out of their business.
When having this discussion, I always like to use the example of fitting a light to your house. Fitting a light fixture may be fairly straight forward for most that are handy, however there are so many hidden issues that a non-tradesperson wouldn’t think about, such as safety, compliance, amperage, current draw and the list goes on. So who knows about all of this? A qualified electrician. Hence why it is in your best interests to have an electrician fit the light to your house, even though it may cost you a small fee – your value and benefit of peace of mind far outweighs the cost. So in thinking about this example, why is it business owners, who generally know little about ‘business’ persist with thinking they can run their business optimally.
Business owners are some of the busiest people in the world. They juggle so many responsibilities, but even the best of jugglers drop the ball on occasion. When business owners are focused on the operations side of the business, or trying to fix efficiency problems, it means they aren’t focussing on their customers, or their product, or their service offering – the stuff that actually makes the money. What’s more, is that very few have the knowledge or experience to be able to fully understand the compliance side of the business, or how to get the best out of staff; or even how best to leverage their assets. Cashflow management is the most poorly handled aspect of a small business when business owners attempt to do it all themselves. So not only are they losing focus on what is really important in their business, they also are at risk of not having the cash to support the business either.
So what is the solution? Much like the example above about the electrician; business owners need to find themselves a ‘business tradesperson’ – someone who’s service offering and experience is in business. Historically, many turn to their accountant for this and whilst a good accountant will ensure that your financials are under control and are invaluable, most still lack the holistic ability to understand the business. An MBA is a minimum prerequisite for any Executive in a large company – the reason being is that an MBA will equip a person with a broad understanding of business. The problem that small business owners have is being able to afford an MBA so the cycle continues of the business owner just attempting to do it themselves.
Fortunately, there is a way that business owners can leverage the experience and knowledge of an MBA in order to refocus their attention to their customers/product/service without the challenge of hiring one full time. Bizee Management Solutions offer a bespoke service by placing their MBA’s within a small business to work with and support the business owner by providing operational support. With tailored engagement periods, it means that business owners can take advantage of the business knowledge of an expert when required, and can be funded by the growth created from the owner’s refocus on value creation.