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What does “working on the black” mean for SMEs?

Jun 23, 2025 | Strategy | 0 comments

Running a small business is often an exercise in managing chaos. Your calendar is full, your team needs answers, and customers expect outcomes, yesterday. 

For many small to medium businesses, the urgent constantly takes priority over the important. But while you’re firefighting and ticking off to-dos, something more critical is quietly slipping through the cracks — your business’s future.

This is where the concept of “working on the black” comes in.

Misunderstood and too often ignored, “the black” isn’t about compliance or cash flow. It’s about the medium to long-term strategic direction of your business — the part only you, as the director or leader, can own. If you’re not carving out time for this kind of work, your business may be busy, but not necessarily on a sustainable path to growth.

Here’s what “working on the black” means, why it matters more than you might think, and how making it a priority can transform your business from operational to exceptional.

Understanding the red, blue and black framework for SMEs

To make sense of “the black,” you first need to look at the broader framework it’s part of: red, blue and black.

This productivity model helps small business owners categorise their time and effort based on the type of work being done — not just how much of it. 

Here’s a breakdown:

1. Red time

    These are non-revenue-generating activities. Tasks like managing your premises, admin tasks like booking meetings, emails, updating documents etc, managing your finances, managing HR and IT issues — all necessary to keep the lights on but not core to business growth. Too much red, and your business becomes stagnant and reactive.

    2. Blue time

      These are the revenue-generating activities. Think business sales and marketing, production, customer delivery, and support. Blue time moves money into your business and keeps you in business — but it’s still mostly short-term focused.

      3. Black time 

        This is where the real transformation happens. Black work is strategic, creative, and often complex. It includes vision setting, shaping company culture, building leadership capability, evaluating market shifts, acquisitions, product development, brand positioning, or deciding what kind of business you want to be in five years. Black work builds future equity value. It’s not urgent — but it’s absolutely essential if you want to scale your business.

        Most businesses are stuck balancing red and blue and black barely gets a look in. But if you want to grow, scale and lead sustainably, black work must move from optional to non-negotiable.

        Why a focus on “the black” is paramount to SME success

        If red is necessary and blue is urgent, black is the only one that’s irreplaceable because black time sets your business direction.

        Without a clear and compelling direction, your team ends up running hard — but not necessarily in the right direction. Black work is where strategy lives and where you ask and answer the hard questions:

        • What market are we truly in?
        • What do we want to be known for?
        • How do we scale without losing quality or culture?

        This isn’t theoretical. It’s the foundation of sustainable growth. Long-term success hinges on being deliberate about how your business evolves – black work is where you make those decisions.

        To understand this concept further, here are benefits to black work.  

        1. Black work defines your leadership

          As a director or leader, your staff look to you for more than instructions — they look to you for clarity and inspiration. Black time is when you define and communicate your business’s leadership framework: values, culture, and expectations.

          This empowers your team to step up and take ownership. Rather than managing every issue, you’re building the systems and structures that let people operate independently and confidently — all while heading in the same direction.

          2. Black work focuses on sustainable profitability

            It’s easy to chase quick wins in business. But sustainable profit requires knowing which clients to prioritise, which services to sunset, and where to invest. That clarity doesn’t happen in the red or blue. It’s only developed in the black.

            Unclear strategic direction is one of the reasons small businesses struggle to attract and retain talent. Staff want to work somewhere with vision and leadership — and that only comes from investing time in the black.

            3. Black time unlocks scalability

              Growth without black time is risky. You might win more clients, hire more staff, and boost short-term revenue — but without a foundation of leadership, systems and strategic clarity, cracks will start to show.

              By contrast, when you spend time on the black, you’re actively setting your practice up to scale sustainably. You’re creating the structure that supports the weight of success. You’re building a business that grows because of you, not one that only functions with you at the centre of everything.

              Why most businesses avoid “the black” (and what to do about it)

              Here’s the uncomfortable truth: most small business owners know they should be working on the black. But they aren’t.

              Why? Because black time is hard. It requires space to think, confidence to decide, and often forces you to face uncomfortable realities. It also doesn’t give you the instant satisfaction that red or blue work does.

              You can tick off 10 admin tasks in an hour. You can send three proposals in a morning. But setting a five year strategic direction? That takes a different kind of energy.

              This is where many business owners fall short — not due to lack of talent, but lack of structured support. 

              We help leaders get out of the day-to-day and into black thinking. Whether through one-on-one consulting, tailored workshops, or access to our leadership resources, we give you the tools, frameworks and accountability to stay in the black consistently.

              And the impact? Better leadership. Clearer direction. More empowered staff. Stronger valuation.

              Black isn’t a buzzword. It’s where future-focused leaders operate.

              So, if your days are filled with emails, meetings, and delivery deadlines — you’re not alone. That’s the reality for most small business owners, but staying stuck in red and blue work means your business will eventually plateau, or worse, decline.

              Investing time in the black isn’t a luxury — it’s a necessity. It’s the difference between being a “busy” business owner and a growing, resilient, and future-proof one.

              We believe every SME deserves a clear path forward — and we’re here to help you carve it out. That’s why we’re offering a one-off opportunity: a free black framework discovery call.

              This is a no-obligation, strategic deep dive to help you identify where your time is going — and how to shift it towards what matters most. Only five spots are available, and they will go fast.

              Book your black framework discovery call and start building the business you’ve always wanted to lead.

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