Are you “investing” your time working ON your business or “spending” it working IN your business?
The challenge that I find a lot of business owners face today is that they are so busy working in their business that they can’t see the full potential of their business. So many times I look at a business and think the owner is doing well, only to discover on talking to them, that they are not even earning as much, (when their income is converted to an hourly rate), as their top employees.
A while ago, we had a client who owned a commercial cleaning business. This client used to work each week doing the cleaning himself. When asked how much would it cost to employ someone to do the cleaning he was doing, he replied “ about £400 per week”. He was then asked how much extra business he could generate if he spent this same time in a week looking for new customers. He said he could generate about £2000 worth of new business in a week.
It’s obvious, looking from an outsider’s perspective, that the logical thing for the owner to do is employ a cleaner to work in the business so that the owner can work on the business.
How much mundane work are you doing that could so often be delegated to a junior staff member or contracted out, or maybe even a semi-retired person?
What are your opportunity costs? What value do you place on your time? How much extra business could you generate if you employed someone to do the day-to-day work?
What would it mean to your customers and your business if you were “freed up” to follow up enquires that haven’t been chased up, socialising with customers, encouraging them to come back or phoning existing customers to see if there is anything they require. The bottom line is you could be spending time on vital sales and marketing, but you’re bogged down doing the day-to-day, time consuming, physical work that someone else could be doing.
How much time do you spend developing new marketing strategies, analysing Test & Measure results, instigating relationships with other businesses and the host of other necessary activities that make the difference between a successful business and an average business?
There’s a whole heap of things that a business owner needs to get done in an average day. Successful business owners are those that do the things that are important in maximising profit rather than concentrating on the “urgent problems” that arise every day.
Use professional advisers to help you in areas that you aren’t an expert in. Get yourself a competent accountant and hire a bookkeeper, these sorts of people will save you time and money, as well of course as a good business coach.
For example, if you were to invest in a Real Estate Development, you would take it for granted that you needed to hire the services of a Project Manager to advise you or to co-ordinate the Architect, Draughtsman, Town Planner, Finance Manager, Construction Manager, Marketing Manager, Sales Manager, etc.
When we get involved in business, most of us do so with little or no assistance at all. Yet “a business” as an investment can and does, when well managed, outperform every other type of investment.
Take the challenge and look at your business as an investment. Look for a return on your invested capital as well as an hourly rate of pay in excess of your top employees.
Review what happened last year, analyse the results you achieved, see what adjustments you need to make to obtain the results you require, plan next year and look at what assistance you require to obtain the desired result.
Remember above all else, that time spent working on your business is far more important than time spent working in it.
Do you need help in improving your Performance and Productivity? Our Business Growth Specialist could help you on your journey with a 1-2-1 session. Book a complimentary coaching session now.
