Are You a Reactive or Proactive Business Owner?

By Razelle Janice Drescher   

Why is this important?

There is a big difference between running a business reactively versus proactively.  As a business coach, I have encountered many businesses whose approach to their day-to-day operations is reactive. That means that when there is a problem or frustration, everything stops and the issue is addressed, at least for the moment. However, there is a cost to operating a business that handles the challenges that arise day-to-day in the reactive, firefighting mode.

Is that solution just a quick fix, or has it become embedded in the daily operations of the company? Does the quick-fix solution ensure that the issue will not happen again? Or is it a people-dependent solution that isn’t woven into the fabric of daily business operations?  If the business is too dependent on the people who run it, the result is often burnout. 

A better mindset is a proactive one that recognizes there is a path to building a successful business. This approach includes building and implementing the elements of the soft infrastructure of your company to put the right foundation in place.

The Right Foundation

Working on building the elements that make up the soft infrastructure of your business is a different kind of activity than operating your business day-to-day. It means that you understand the need for these key elements of infrastructure so that your customers, vendors, and employees have a consistently excellent experience. What are these key elements?

The Building Blocks of a Healthy Business

Life Vision 

Establishes the owner’s connection to himself and what’s important to him/her.

Business Vision

Creates a clear picture of where the business is headed and what it’s all about.

Organizational Structure

Defines the functions of the business.  It is the framework needed to fulfill the business vision.

Position Agreements

Clarify roles, responsibilities and hiring needs.  A tool that helps establish accountability.

Systems Development

Documents best ways of operating day-to-day for consistency and a high operating standard.

Management System

Establishes accountability, respect and trust in an environment of shared expectations and predictable results.

Building and implementing this foundation for business success is essential for several reasons:

  1. Putting these elements in writing creates clarity about how the business will work and the standard of excellence to be met.
  2. All employees know what their job entails.
  3. You can hold people accountable for their part in business operations.
  4. When there’s a question about an employee’s performance, you can provide the support they need to succeed.
  5. Managers can focus on employee development instead of firefighting.
  6. Hiring costs decrease due to less turnover.

What Does This Mean for Your Business?

How do you know if you are reactive or proactive as a business owner? To understand your approach to building your business, ask yourself:

  1. Does my business depend on me?
  2. Can I take time off and not worry about the business running without me?
  3. Are mistakes happening over and over again?
  4. Is there a lot of turnover in my business?
  5. Do I have systems in place so everyone knows what their job entails and the standards to be met?

Working on building the soft infrastructure of your business will free you or any employee from being the glue that holds your business together. This kind of work is called working on your business instead of just working in it. I work collaboratively with business owners and their teams to put these missing pieces of infrastructure in place. Sign up for a free consultation to understand more about your path to business success. It’s better together!

https://calendly.com/intentionalleaders

 

Razelle Janice Drescher is an Executive Coach and owner of Intentional Leaders.

Call or sign up for a complimentary consultation and turn your business frustrations into business solutions!