Working ON Your Business vs. IN Your Business: Why It Matters

Here's an uncomfortable statistic: Only 66% of businesses last two years, and just 30% reach the ten-year mark. The primary reason? Most business owners become too involved in daily operations rather than formulating strategies and a long-term vision for growth.

If you recognized the signs of business model maturation in our recent post, you're likely wondering why you didn't see them coming sooner. The answer is probably simple: you've been working in your business instead of on it.

The Critical Distinction

Working "in" the business means being involved in daily operations—addressing immediate issues, managing teams directly, and handling routine tasks like firefighting problems, approving invoices, or managing customer complaints.

Working "on" the business refers to focusing on overarching strategy, vision, and direction—building systems, shaping company culture, identifying long-term opportunities, strengthening leadership teams, and steering toward sustainable growth.

The difference isn't about working hard versus working smart. It's about where you focus that hard work. And here's the problem: on average, business owners spend 80% of their total time on low-priority tasks and only 20% on functions of fundamental importance.

Why This Imbalance Is Dangerous

When you're perpetually absorbed by operational details, three things happen:

You risk becoming a bottleneck for your team. By micromanaging, you undermine the autonomy of other leaders, leading to lower morale and missed opportunities for empowerment.

You get drawn into too many tactical decisions. Without clarity on strategy, every decision feels urgent and requires your input.

You miss inflection points entirely. Remember those signs of business model maturation? You can't see them when you're focused on this quarter's results and today's fires.

Being tactical means focusing each day on cash flow, survival, and the most urgent task—regardless of its level of importance. These CEOs are working IN the business 100% of the time, putting out continual fires.

The 20% Rule for Business Survival

Google founders Sergey Brin and Larry Page adopted a "20% time" rule that contributed to significant advances like AdSense and Google News. The rule dictates that business owners must spend a minimum of 20% of their time working on their business to prevent stagnation and eventual business failure.

Twenty percent doesn't sound like much—roughly one day per week. But for most middle-market CEOs, carving out even that much uninterrupted strategic time feels impossible.

Yet it's non-negotiable. Strategy creates alignment among the many decisions within a business. By spending time on strategy, a CEO provides direction, helps make the value proposition explicit, and defines how the company will compete. Without this time, you're navigating blind.

What Strategic Work Actually Looks Like

Working "on" your business doesn't mean abandoning operations entirely. The best CEOs find a balance: "Counselors" are confident operations will take care of themselves and instead focus on strategy, coaching, and mentoring their teams, while "Operators" want constant updates and schedule regular review meetings.

Strategic work includes:

• Developing and refining your business strategy (including spotting second curve opportunities)

• Building systems that run without your constant intervention

  Strengthening your leadership team and succession planning

• Shaping company culture and values

• Identifying market shifts and competitive threats

• Exploring new business models and revenue streams

Notice what's not on this list: approving invoices, solving IT problems, or sitting in every client meeting.

As your business matures, strategy time is needed to create your Second Curve of growth.

How to Make the Shift

Start small. If you're currently spending 90% of your time operational, don't try to flip to 50% overnight. Aim for that 20% minimum first:

Block sacred strategic time. One full day per week, or four half-days. Treat it like your most important client meeting—because it is.

Delegate ruthlessly. If someone on your team can do it 80% as well as you, it's theirs. You're not looking for perfection; you're looking for capability and growth.

Build systems, not dependencies. Every time you solve a problem, ask: "How can this be handled without me next time?" Document processes. Create decision frameworks.

Invest in your leadership team. Strengthening your leadership team allows them to handle more operational decisions independently, freeing you for strategic work.

Say no strategically. Not every meeting needs you. Not every decision requires your input. Trust your team to handle what they're equipped to handle.

The Connection to Business Transformation

Here's why this matters for your second curve: Without clarity on strategy, the CEO will be drawn into too many tactical decisions. And when you're buried in tactical decisions, you can't see the strategic opportunities—or threats—on the horizon.

The engineering firm that misses the shift toward integrated asset management solutions? Working in the business.

The professional services firm that doesn't see subscription models gaining traction? Working in the business.

The CEO who realizes too late that their business model has peaked? Working in the business.

Your next curve won't reveal itself in your inbox or during operational review meetings. It emerges when you have space to think strategically about where your industry is heading and where you want to position your company.

Ready to reclaim your strategic time? Let's talk about building the systems and team that free you to work ON your business.

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References

66% Business Survival Stat: U.S. Bureau of Labor Statistics (2024) Business Employment Dynamics. Available at: https://www.bls.gov/bdm/(Accessed: November 16, 2025).

Visual Capitalist.com, Visualized: How Many New Businesses Survive 10 Years? (June 17, 2025) https://www.visualcapitalist.com/visualized-how-many-new-businesses-survive-10-years/ (Accessed: November 16, 2025)

European Business Review (2022) Exploring decision-making at the strategic, tactical, and operational levels, The European Business Review. Available at: https://www.europeanbusinessreview.com/exploring-decision-making-at-the-strategic-tactical-and-operational-levels/ (Accessed: November 16, 2025).

Gerber, M. E. (1995) The E-Myth Revisited: Why Most Small Businesses Don't Work and What to Do About It. New York: HarperCollins.

GrowthForce (n.d.) What type of CEO are you - tactical or strategic?, GrowthForce. Available at: https://www.growthforce.com/blog/are-you-a-tactical-ceo-or-strategic-ceo (Accessed: November 16, 2025).

Supplyframe Intelligence (2022) Are your teams stuck in "firefighting" mode? Here are 3 ways to get out, Supplyframe. Available at: https://intelligence.supplyframe.com/3-ways-balance-firefighting-strategic-focus/ (Accessed: November 16, 2025).

Business.com survey, Time Trapped: The Productivity Crisis Facing Small Business Leaders, https://www.business.com/articles/productivity-crisis-facing-small-business-leaders/((Accessed: November 16, 2025).