If you’ve read Michael Gerber’s book “The E-Myth Revisited”, you know that many business owners get caught in the trap of working IN their business, and not ON their business.
What does that mean?
Simply put, working IN your business means playing the role of “technician”, the one who does all the nitty-gritty work on a day-to-day basis. Working ON your business means being a true entrepreneur – guiding the overall strategy of your business, but letting others do the day-to-day nitty-gritty work.
Gerber says that playing the role of the technician is fine in the early days of your business, but at some point you have to elevate yourself to the role of entrepreneur – otherwise, you run the risk of burning out. In fact, Gerber believes that the #1 cause of small business failure is that many business owners get burnt out by being technicians, when they should be systematizing their businesses and hiring others to do the operational work.
When I read “The E-Myth Revisited” recently it really struck a chord with me, because I’ve been a technician in my online business for too long. Reading the book caused me to step back and think about the individual components of an online business. Going forward, I’ll be systematizing every aspect of my business – developing written processes for every component, and hiring additional people to carry out the day-to-day tasks that aren’t already performed by my virtual staff.
So how does this affect you? Well, whether you’re an online veteran or a complete newbie, I encourage you to think about the components I’ve outlined in the video above and the diagram posted below. If you’re currently playing the role of technician, think about which components of your business you can outsource, to grow your business faster (if there’s one thing I would have done differently in growing my own business, it would be to hire outsource help sooner!)
Here’s what I think are the most important components of an online business:
So that’s my take on what makes up an online business. Feel free to download the schematic in which I’ve outlined all of the components (download the schematic here).
And if you have any questions, or suggestions for improving this model, please leave them below!
I've been making money online since 2009 and have a passion for research. My focus is niche research: finding profitable niches, keyword research, and competition analysis, as well as creating outstanding content.