Contrary to the common belief among entrepreneurs, expanding a small company into a larger enterprise doesn't center on their worst HABIT: working harder and longer.
There was a small business owner who had big dreams and ambitions. He worked tirelessly, day in and day out, believing that the key to success was to work harder and longer than anyone else.
Despite his relentless efforts, the business remained small. He felt trapped, overwhelmed by the endless tasks and responsibilities that came with running his company. He often wondered why he couldn't seem to break free from this cycle and create self-managing company.
He wanted a company that would not only free him from the daily tasks but also allow him to focus solely on what he loved to do. He realized that the first step was not to create a job for himself but to implement the "WHO not HOW" philosophy.
He understood that constantly trying to figure out HOW to do everything on his own was limiting his growth. Instead, he began to collaborate with experts, delegating tasks to those WHO excelled in them.
He also learned that working overtime wouldn't necessarily get him ahead. Creativity had its limits, and his brain needed rest to function at its best.
He looked at what he uniquely do to help other and generate income for a better future and envision himself three years from now, making progress and feeling content with his journey. This clarity allowed him to tailor his services to meet his customers' specific needs.
He made a conscious decision to choose new capabilities over cash when the opportunity arose and cash confidence allowed him. He knew that developing these capabilities would ultimately will generate more cash in the long run, as opposed to relying solely on financial resources with the same capabilities.
He embraced change and complexity, recognizing that they create great new opportunities. He trained himself and his team to transform complexity into simple solutions, avoiding unnecessary complications.
He stayed focused but didn't plan his days 100%. Leaving some room for unpredictability allowed him to be open to new opportunities, capabilities, and possibilities that could help him grow.
He understood that leadership was about managing the future and inspiring others. He knew that great managers were essential for optimizing the present, but he needed to focus on leading and electrifying his entire organization.
His habits were the building blocks of a successful entrepreneurial journey. He worked on cultivating good habits and eliminating bad ones.
Every 90 days, he reviewed his progress. He eliminated five things that slowed down his success and drained his energy, whether by stopping, delegating, or outsourcing them. He also picked five activities that he loved and that added value to others and generate income, focusing his time and energy on doing more of them.
His unique ability was the intersection of his passion, helping others succeed, multiplying income and reputation, and striving for x10 growth. Focusing on this unique ability simplified his approach, enhanced creativity, fostered teamwork, and increased productivity.
He was no longer trapped by the daily grind thanks to self-managing company and gave him the possibility in doing what he loved. Despite all the pressure from the world which claim you can’t do only what you like and love there is still a chance to do it.
Common Factors Contributing to Small Business Stay Small
Scarcity vs. Abundance: A prevailing mindset fixated on scarcity, where opportunities, people, and economic prospects are perceived as limited.
Past vs. Future: An excessive focus on past disappointments and missed opportunities, overshadowing the potential for future growth.
Transactional vs. Transformational: Operating primarily in transactional business models, prioritizing competitive pricing over growth, innovation and market transformation.
Security vs. Opportunity: A greater concern for security over seizing opportunities, resulting in hesitance to take risks and explore new ventures, fearing potential setbacks.
Competition vs. Collaboration: Continuous preoccupation with competition due to all the above factors, hindering collaboration and partnership potential.
Status vs. Growth: When your mindset centers around growth, there's no need to concern yourself with status. Growth naturally elevates your status and influences how you and your business are perceived. Paradoxically, achieving status often leads to complacency and a halt in further growth.
Ego vs. Capability: A focus on ego-driven perspectives, such as the belief of being the smartest individual in the room, which can blind you on opportunities for learning and personal growth.
Cost vs. Investment: Viewing expenditures as costs rather than investments, leading to reluctance in allocating resources toward initiatives that could fuel future growth.
Applying the "WHO not HOW" rule to these eight reasons can shift one's perspective towards abundance and potential opportunities in each area.
Mastering the Art of Creating a Self-Managing Company
Every entrepreneur dreams of building a business that not only thrives but also grants them the freedom to do what they love. But achieving this isn't just about working harder or longer. It's about embracing a different mindset and adopting strategic principles that can transform your company into a self-managing entity.
1. Don't Create a Job for Yourself – Implement "WHO, Not HOW"
Our traditional education often emphasizes the "HOW" – the process of solving problems on our own without using others. However, the path to growth lies in working with others (the "WHO") and delegating tasks. In the real world, most problems are solved by collaborating with subject matter experts, making "WHO" an unlimited resource compared to the limitations of "HOW."
2. Working Overtime Won't Propel You Forward
Endless hours of work may seem like a shortcut to success, but there's a limit to what your brain can handle. Creativity and productivity have their bounds within a given timeframe. Working smarter during dedicated hours is more productive than pushing yourself into overtime.
3. Be a Leader, Not Just a Manager
Distinguish between management and leadership. Management focuses on the present and optimizing existing processes. Leadership, on the other hand, is about steering toward the future. To lead effectively, you need a secure cash flow to enable you to plan for the future. Inspire and electrify managers and entire organization, but don't get trapped in managerial tasks as an entrepreneur.
4. Identify Your Unique Impact
To grow, you must identify the people (your customers) whom you uniquely could help. Understand what their better future looks like and envision where they see themselves three years from now. While you can't influence every aspect of their future, focus on the areas where you can make a difference.
5. Harness the Power of Habits
Your habits shape your success. Successful entrepreneurs cultivate good habits over time. Initially, these habits may feel difficult and unnatural, but with repetition, they become automatic. Focus on what you can control to perform tasks consciously or unconsciously that lead to success.
6. Regularly Review and Optimize
Every 90 days, review your progress. Eliminate five activities that prevent achievements and drain your energy. Stop doing them, delegate, or outsource. Simultaneously, select five activities you love, ones that add value and income, and channel your time and energy into doing more of them.
7. Prioritize New Capabilities Over Cash
If you're in a position to choose, prioritize developing new capabilities over accumulating cash. Having cash confidence gives you the freedom to make choices. New capabilities often lead to increased cash flow, while more cash alone won't necessarily foster new capabilities.
8. Embrace Change and Complexity
Change brings complexity, but it also offers great new opportunities. While most people shy away from complexity, your success as an entrepreneur lies in your ability to transform complexity into simple solutions. Avoid overcomplicating matters; instead, train yourself and your organization to navigate change effectively.
9. Stay Focused but Flexible
While planning is crucial, avoid over planning every aspect of your day. Allocate at least 30% of your time to unplanned activities. This unpredictability allows you to remain open to new opportunities, capabilities, and possibilities that can drive your business's growth.
10. Unleash Your Unique Ability
As your business grows, you'll find yourself immersed in non-productive details and complexity. To overcome this, concentrate on four essential elements:
What you're passionate about.
Becoming a hero by helping customers succeed.
Passionately multiplying your income and reputation.
Combining these aspects to achieve x10 growth.
Focusing on your unique ability simplifies your approach and enhances creativity, teamwork, and productivity.
A self-management company with clear leadership and management structures that actively work to reduce micromanagement can expand the benefits of employee autonomy and innovation while providing essential guidance and support. However, this approach comes with its challenges, such as communication, accountability, and the need for effective change management during the transition. Successful implementation depends on maintaining a balance between autonomy and guidance while fostering a culture of trust and empowerment.
Creating a self-managing company requires a shift in mindset and deliberate actions. By embracing these principles, you can not only unlock your potential but also create a thriving business that aligns with your passions and aspirations.
© Inspired by Dan Sullivan - Strategic Coach
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