The philosophy of working on your business instead of in your business is achieved as follows:
- Having the right people in place to assume the administrative and operational responsibilities and if you do not have the right people you must work to get them
- The business owner must be the face and the ambassador of the company
- The business owner must be responsible for bringing business into the company and working toward that end
- The business owner must continuously communicate with existing customers in order to maintain those relationships
- The business owner cannot have any administrative or operational responsibilities nor can they allow themselves to get immersed and bogged down in those responsibilities.
I told this potential client that if I were consulting those business owners there is no way I would have suggested to lay off their key people and abandon the concept of working on their business instead of in their business. First of all, what is needed in a recession are sales and to take the person responsible for bringing business into the company (the business owner) and putting them into the administrative and/or operational trenches is a terrible mistake and will drastically reduce the top line. Secondly, in a recession you do not layoff key top performers you layoff "B","C", "D" and "F" performers.
Part of a good strategic plan is working towards this concept of working on your business instead of in your business. A good Part Time CFO should have a good working knowledge of this concept and its implementation as part of their CFO Services.