The journey from simply "doing the work" to building a thriving, scalable business begins with a shift in mindset. Michael E. Gerber, the legendary author of The E-Myth Revisited and co-author of The E-Myth Bookkeeper, shared transformative insights in an episode of The Successful Bookkeeper Podcast. His philosophy has helped countless small business owners, including bookkeepers, transform their operations from chaotic to scalable enterprises.
One of Michael Gerber’s most impactful observations is the concept of the “entrepreneurial seizure.” Many small business owners, including bookkeepers, start their businesses because they’re skilled at their craft. However, they often fall into the trap of "doing it, doing it, doing it," getting caught in the day-to-day operations and failing to think strategically about their business.
For bookkeepers, this can mean focusing solely on completing client work while neglecting the larger goal: building a scalable, sustainable business.
According to Michael, the key to escaping this trap is creating systems. Systems turn your business into a predictable, repeatable machine that doesn’t rely solely on you. This not only increases efficiency but also allows you to scale your business and, eventually, prepare it for sale.
For bookkeepers, systems can include:
- Client onboarding processes: Streamline how new clients are brought into your business.
- Standardized workflows: Create repeatable steps for tasks like reconciliations, reporting, and invoicing.
- Technology integration: Use automation tools to handle routine tasks, allowing you to focus on higher-value work.
When your business runs on systems, it becomes scalable, sellable, and more enjoyable to manage.
One major barrier, Michael points out, is that bookkeepers are often seen—and see themselves—as technicians, not leaders. Many bookkeepers perform critical financial tasks but don’t position themselves as strategic partners to their clients. This limits both their impact and their earning potential.
To change this, bookkeepers need to adopt a leadership mindset. This involves:
- Shifting Perception: Reposition yourself as a financial leader who provides valuable insights, not just bookkeeping services.
- Client Education: Help clients see the importance of financial systems and how your expertise can drive their business decisions.
- Building Confidence: By focusing on the big picture, you’ll move from being an invisible technician to a trusted advisor.
Michael stresses that every small business owner should think about their exit strategy from the very beginning. Whether you plan to sell your business or simply want it to run without your constant involvement, building with the end in mind is essential.
A business that’s dependent on its owner is not a sellable asset. By implementing systems, creating scalability, and removing yourself as a bottleneck, you make your business more attractive to potential buyers.
Michael's framework, laid out in his course and books, provides bookkeepers with a roadmap for transforming their businesses. Key steps include:
- Start with a Dream: Define what you want your business and life to look like.
- Build a Vision: Develop a clear picture of how your business will operate at scale.
- Create Systems: Design processes that ensure consistency and scalability.
- Adopt an Entrepreneurial Mindset: Lead your business with strategic intent rather than reactive effort.
For bookkeepers ready to break free from the cycle of "doing it, doing it, doing it," the message is clear: focus on building a system-dependent business. Whether it’s automating workflows, positioning yourself as a financial leader, or planning for your eventual exit, the steps you take today will shape the future of your business.
As Michael puts it, “Anybody can pick up that mantle.” The opportunity to create a thriving bookkeeping enterprise is within reach. It’s time to stop working in your business and start working on it.
What’s your next step toward building a scalable, successful bookkeeping business? Share your thoughts and join the conversation!
For more great content, check out The Successful Bookkeeper Podcast!
