The Power of Working on Your Business, Not in It

By Tony Monisse

Is being the expert in your field actually holding your business back?

Have you ever considered that being a technical expert in your company’s product or service might actually be a disadvantage? While having expertise can be valuable, too much focus on the technical side can sometimes prevent business owners from seeing the bigger picture. In fact, stepping away from technical details and working on your business, rather than in it, is often the key to driving growth. This approach helps build a stronger, more sustainable business.

When you’re deeply involved in every technical aspect of your business, it can be difficult to step back and focus on the higher-level strategies that will help you scale. By concentrating on leadership, growth, and building a strong, capable team, you can create a business that runs smoothly without relying on your direct involvement in every operation. As Michael Gerber’s The E-Myth Revisited advises, the real power comes from working on your business, not in it.

Managing Without Being a Technical Expert

One of the most critical questions that a business owner needs to ask is how to mitigate the risk of being taken advantage of if they don’t fully understand the technical side of their business. There’s always the risk that employees or vendors might overstate the time or costs. But you don’t need to become an expert in every area to address these concerns.

Here are two strategies that can help:

• Tie Employee Compensation to Long-Term Success: Aligning compensation with the company’s future success motivates employees to make decisions that benefit the business as a whole.
• Implement Phantom Equity: This gives employees a stake in the company’s financial upside without transferring ownership, ensuring their decisions align with your long-term goals.

By using these strategies, you reduce your reliance on technical knowledge and ensure that your business operates efficiently, with a team that’s accountable to its success.

Focusing on the Strategic Sweet Spot

From our experience, you don’t need to be a technical expert to build a successful and valuable business. The key is to build a business that can run without you. By focusing on growth, empowering your team, and aligning incentives with performance, you can build a better business; one that will attract buyers or investors.

In fact, businesses that are less dependent on the founder’s technical expertise tend to be more valuable in the long run. A business that can run without the owner’s daily involvement is more attractive to potential buyers, as it shows that the business has a solid, independent foundation for future growth.

Your Business as an Asset

Ultimately, your business is more than just the product or service you provide—it’s a system, a brand, and an asset. The less you need to be involved in the day-to-day operations, the better. By focusing on building a business that operates smoothly, with a strong team in place, you create a more valuable, sustainable asset that can thrive long after you step back.

Not being a technical expert can actually be a significant advantage. By focusing on the broader aspects of your business—leadership, growth, and team empowerment—you can create a more successful, scalable, and valuable company. Sometimes, the less you know about the specifics, the better equipped you are to build something truly great.

How hard is the business working without your direct involvement? The answer may be the key to unlocking your business’s next level of growth and helping you grow a sustainable profitable business.