By hiring PSL to assist you with some of your administrative or mundane tasks you can free up more time to do the tasks that make you money.
Time is the greatest asset a small-business owner can have. Is your plate full with tasks that will grow your business, or “busy work” that has you chasing your tail?
When you are spending all your time working on so many important tasks to keep your business running, you are often left with very little time or energy to spend time with family and tend to the smaller things like household chores and your business’ administrative work.
You need to have a good sense of the value of your time and as a business owner, you are trying to grow your business and grow its revenue. You are constantly thinking of things that free up your time and gives you energy to invest in your business.
The key is figuring out how to value your time and what tasks can you assign to someone else. How much time does this task take? Do I know how to do it correctly to be in compliance with any appropriate regulations or laws? How much do I dislike a task? Is this a task someone else can do more efficiently?
As a business owner you need to focus on those things that actually grow your business. By hiring others to do some of the mundane or day to day administrative or office tasks that do not generate income, it frees you up to focus on the income generating tasks.
For example and for this blog, imagine you are a incorporated general contractor your core competencies and capabilities lie in building homes or commercial buildings. While drafting agreements, contracts, correspondence or maintaining your corporate records may not be your strong area of the business they are a necessary part of the business.
The types of tasks that are best outsourced include highly repetitive tasks, data entry, drafting documents, regulatory items with set deadlines, and/or maintaining your corporate minute book.
As a business owner, identifying your priorities on any given day is an ongoing challenge. With so many tasks calling for your attention, it may seem impossible to handle them all. How can you figure out where your time is best spent and when should you consider hiring someone to assist with tasks instead of doing them yourself?
Here are few questions to ask yourself.
1. Is the task essential to your business’s competitive advantage? Functions that are critical to setting your business apart should be kept in-house—they’re too important to outsourced to others. However, as time moves on and your business grows, life will require you to transition some of these duties and hire others to assist you in your business. That is, you have time to meet your clients and discuss what they want in the home you are building, be present to check on the progress of the project, meeting with the architect, etc. This keeps clients satisfied while enabling you to concentrate of what is needed to grow your business and clientele.
2. Is the task part of your skill set? Small business owners wear many hats, especially in the startup stages. Tasks that you aren’t good at are excellent prospects for delegation in business since an experienced person could likely handle them much faster and do a better job. They would also have specific knowledge on things like annual renewal of your corporation or annual minutes or how to draft a corporate resolution needed by a bank or title company.
3. Is the task worth your time? There are two ways to assess this. The first is to look at your time in terms of dollar value. For instance, if the consultant charges $150 a year for a registered agent fee, and this fee includes keeping your corporation in compliance with state statute, renewal and annual minutes, and you do not have the knowledge to do so on your own and how much time would you spend learning and doing so for yourself. The second way is to look at your time in terms of value to the business. For instance, the owner of a construction company might have to start out doing the building himself and taking care of all the office administrative work himself. Ultimately, though, his time will bring more value to the business if he focuses on strategic planning, reaching out to prospective clients and otherwise figuring out how to grow the business. This business owner should hire others to handle the actual office work as soon as possible.
4. Is the task something you enjoy? Last, but not least, consider what you love to do. Many entrepreneurs start businesses because of a passion, only to find as the business grows that they no longer do any of the things they love and are miserable. Consider delegation or outsourcing some tasks so you have more time to spend doing the tasks you love. By doing so, you renew your passion for the business and also be able to explore new growth areas.
When you hire the right person, they can save you time. A person who’s more skilled in an area than you are will be able to streamline processes and accomplish tasks more quickly, and see breakdowns in your processes, which means they’ll be able to help create efficiencies in your business.
These skills can be invaluable! Especially to a small business who has limited time and resources. So what does “time is money” mean?
When we hire someone who is better at performing a task than we are, they’ll often complete the task in less time. Meaning, we save time in our business in two ways:
We’re no longer spending 2 hours performing the tasks that we’ve delegated.
The person we hired is not taking 2 hours to perform the tasks we’ve delegated.
The time that we’re not spending on tasks we’re not very good at (or don’t enjoy doing), is automatically added back into our “time” for the week…and the year. And, you’re only paying someone for 30 minutes to hour of time for a task that used to take you 2 hours to complete.
Think about all those big projects you want to accomplish. What could you do with those 2 hours a weeks? Or 104 hours in a year?
Let me ask you one final question…
Can you really afford NOT to hire someone?
Action Item: This week, think about the tasks that are eating up tons of your time or that you simply don’t enjoy doing. What can you hire out to another and how many hours per year could you invest back into your business? I’d love to hear what you come up with, so comment or email me your answers!!