One of the biggest challenges I see in the home business industry is that people often don’t make the transition from “thinking like an employee” to “thinking like a business owner”.
This shows up in a lot of ways but here’s one example that might be of assistance to someone today.
FACT: There is only one of you. And you only have 24 hours a day. Basic math tells us that there’s only so much that you can do yourself.
So, part of becoming wealthy means identifying the areas of your business that make you the MOST money…and spend most of your working time on those areas.
To do this, you need to decide what your time is worth. Do you feel that you’re worth $100 an hour? $50 an hour? $10 an hour?
The truth is that your time is far more valuable than you can imagine. But let’s start with your present time-value with a simple exercise:
1. Take your annual income
2. Divide it by 52 to get your weekly income
3. Divide it by 40 to get an hourly income
Let’s assume that you discovered that your time is presently worth $50 an hour.
Now, let’s say that you need a new website developed. So, you say to yourself, “Let me see….I’ve got Adobe Photoshop so I can figure out how to do the graphics. And I think there’s a copy of Microsoft Frontpage on my computer. So I’ll go through the basic tutorials and figure this out. What are these layers they keep talking about? What do they mean by closing my tags?” By the time you have it all figured out, you’ve spent 8 hours making a very basic website.
A whole day.
At your present rate of $50 an hour, you just spent $400 to work on something that you’re not very good at. And it was also a job that you could’ve outsourced for less than $150 to someone who IS good at making websites, is a professional at it, and who could get it done in a fraction of the time.
You see how this works? If you want your business to produce $100,000 per year….you have to make sure that you don’t spend your “work” time engaged in something that adds less than $50 of value to the company.
(Note: these figures are fictitious. Remember what I said above. Your time is worth far more than you imagine. Becoming more valuable — from a business standpoint — is easier than you imagine.)
So, part of making the shift from employee-mindset to entrepreneur-mindset is in realizing that you can’t AFFORD to do it all yourself.
What are the most profitable things you can do in your business?
What are the least profitable things that you do in your business?
Identify those factors, outsource as much of the low-profit items as you can….and you’ll have more time and freedom to spend more time on the things that DO get your better results. And a lot of free “play time” as well!
Make It A Great Year,