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🧭 Leadership

Work on your business, not in it

In one sentence

Build systems so the business runs without you doing every task.

The simple version

Many people start a business because they're good at a skill — baking, coding, design. Then they become a full-time worker with a scarier boss. Gerber says to think of your business like a franchise: write down how things are done so anyone can do them, and spend your time improving the system.

Visual · Gerber's three roles
  1. 1Technician — does the work
  2. 2Manager — organises the work
  3. 3Entrepreneur — builds the system

Why it matters

If everything depends on you, you can't grow, take a holiday or ever sell the business.

How to do it

  1. 1Write down how each repeating task is done (a simple checklist is fine).
  2. 2Hand tasks over using those checklists.
  3. 3Block weekly time to improve the business, not just run it.
  4. 4Measure results so the system can improve.

Real-world example

A café owner documents opening, closing and coffee recipes. Staff can now run shifts and she spends her time opening a second location.

What the books say

Key idea (paraphrased)
Most small businesses fail because the owner works in the business as a technician instead of on it as an entrepreneur.
— Michael E. Gerber, The E-Myth Revisited
Quote
“Good is the enemy of great.”
— Jim Collins, Good to Great

Common mistakes

  • Believing nobody else can do it right.
  • Writing systems once and never updating them.
  • Over-engineering processes for a tiny team.

Questions people ask

Isn't this only for franchises?

No. The franchise idea is just a mindset: build the business so it works consistently without relying on one person.

References

  1. [1]
  2. [2]

More books on this in the library

Out of the Crisis

Out of the Crisis by W. Edwards Deming is highlighted by Roger Ehrenberg of IA Ventures as critical for startup founders. The book emphasizes respecting employees, focusing on process, and collecting and analyzing data, applicable to businesses of any size.

An Elegant Puzzle: Systems of Engineering Management

An Elegant Puzzle offers engineering founders leadership lessons on systems thinking for team sizing, technical debt management, and succession planning in high-growth environments. Key principles include organizational design frameworks and cross-functional collaboration for effective team building. Vs High Output Management, it delivers specialized tactics for engineering leaders navigating hypergrowth.

High Output Management

High Output Management teaches founders leadership lessons on maximizing output through OKRs, one-on-ones, and high-leverage activities for effective team building and organizational scaling. Key principles include managing like a production process, conducting performance reviews with absolute honesty, and optimizing meetings. Compared to The Making of a Manager, it provides a more rigorous, systems-oriented approach suited for ambitious startups.

Scaling People: Tactics for Management and Company Building

Claire Hughes Johnson, former COO of Stripe, delivers a practical and empathetic guide to company building and scaling people. Drawing from her experience helping Stripe grow from 200 to 7,000+ employees, this 2023 bestseller includes over 100 pages of templates and worksheets for founders and leaders.

The Mythical Man-Month

Fred Brooks' classic on software project management, essential for software company managers.

The Mythical Man-Month: Essays on Software Engineering

Fred Brooks's timeless classic on software project management and why adding people to late projects makes them later. Essential for technical founders managing engineering teams.

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