What is more important to you, Time or Money? Well, once you have spent your money, you can always earn more, but once you have spent your time, it is gone forever.
How you invest your time is one of the biggest keys to your business and personal success. Have you actually thought about how you use your time on a daily basis and how it could be used more effectively and efficiently? This is the first step to increasing the profit in your business.
It comes down to you, your priorities, and your mindset. Its about looking at what you role is in your business and asking what you can do to facilitate getting more done with less.
Do you know how to reduce the time you spend in your business while increasing your income at the same time?
You might even say that this is impossible, or even financial suicide. But this is actually the first thing you need to do if you want your business to grow and to increase its profitability.
To reduce the amount of time you spend in your business, you must consider your time an investment, that is, investing your time, rather than spending it. You also need to understand that there is a rate of return on the amount of time you invest, just like if you invested $1000 in shares, you would expect a return on your investment. If your time were worth $100 per hour, and you were investing 10 hours of time into your business each day, that’s a $1000 investment that you should be seeing a pretty good return on.
Planning and setting goals up front will allow you to use your time wisely and ensure the continued growth of you and your business. You should calculate your productivity as a percentage of the total time you spend in your business, and spend more time on those activities that will increase your income and less time on other demanding and unimportant tasks. So often, I have seen business owners doing things in their business that they should not be doing, but they continue to do them because they are comfortable doing it and it is familiar to them. They focus on doing what they know, instead of what they should be doing, but don’t really want to do.
If you have ever been guilty of this, then I urge you to ask yourself this question:
“Should I focus 10% of my time on a task or have someone else give it 100% of their attention, even if this person is only half as good as me?
After all, which is easier – a 100% improvement in your own productivity, or a 5% improvement in your staff’s productivity. To get your business to the stage where it provides you with the lifestyle you want, you need to get paid what you are worth. This means preventing your time from being squandered away on low value, but necessary tasks, and creating and developing a team that can run your business for you. To find out if you are being paid what you are worth try this simple exercise:
Calculate the total hours you work in your business each week
Write down the amount that you pay yourself from your business each week and divide that by the total number of hours worked and this will give you your hourly rate.
Is it what you expected? Is it even legal to pay someone that much, who has all your knowledge and experience? The time is now to change. Make the effort to change what you are doing, stop doing low priority, low value but necessary tasks – get someone else to do them, and invest your time in the activities that will directly increase your income and grow your business.