The E Myth: Why Most Small Businesses Don’t Work and What to Do About It is a popular book that points out the do’s and don’ts of a small business. Many who have read it have stated it to be “mind altering” A lot of entrepreneurs, when starting up their company, put most of their eggs in one basket. That one basket being a specific person/position in the company. With this strategy, you are only allowing yourself and your company to succeed in that one category while ultimately letting the others fall by the wayside. Bookkeeping is either one of those roles that falls to the waist-side or that the entrepreneur spends too much time on instead of focusing on the other aspects of the business that he/she is better suited to perform. In The E Myth it specifically states:
“For every business and business owner to survive he must seek help. The sales-oriented owner goes out to find a production person. The production-oriented owner looks for a salesperson. And just about everybody needs to find someone to do the books! Because if there’s anything most small business owners hate to do – and therefore ignore – it’s the books.”
There are so many more important things that they can be doing rather than spending time on their bookkeeping, which could be handled by an in-house or outsourced provider. It is incredibly important for the entrepreneur to spend his time and energy growing the business and putting systems in place that will allow it to grow and scale effectively. Any time spent doing bookkeeping or other technical work is time away from running and managing the business which in many cases is the fatal recipe for going out of business.
Interested in reading The E Myth? Click here.