Time is Money – Making the most of your time as a business owner.
It’s the age-old quote that you have probably heard many times; Time is money.
But we are here to tell you that, well, it’s true. Time is money.
So how are you valuing your time as a business owner?
We find many of our clients don’t value their time efficiently or even at all! They begin to become so ingrained in the minutiae of daily tasks and other supply chain processes that they lose energy and momentum for the tasks and changes that will ultimately let them scale.
With an extra set of hands, the right tools, and investment into documenting your tasks, you can simultaneously save money and make money!
How to Evaluate your time as a business owner
Our clients come to us and think they are saving money doing daily tasks themselves. They run their books, ship out products, handle marketing, and probably also order products and contact vendors. It’s a full plate that they have become accustomed to having. When we ask them why they don’t hire someone to help take over one or even all of those tasks, they say money or time. They fear that without control over tasks and assuring the jobs reach completion “correctly,” the mistakes will cost them money. Sometimes it’s a fear that they don’t have time to train someone else to handle those tasks correctly, so they never invest time into hiring. This inability to delegate is a critical problem. It is always what holds them back from scaling their business and earning more. In addition to the fear, most business owners don’t understand the complexity of evaluating their worth.
Your hourly rate as a business owner should tell you one of two things “ Wow, I undervalue myself” or “ Wow, I am not making as much as I thought.” If you are the latter of the two, it is crucial to see where you are spending the most time in your business. Begin writing all your tasks down. Doing this will help you know what tasks you prioritize and what tasks are falling to the wayside. It should also make it clear which tasks are worth your special hourly rate. Suppose you are the former, and you began to see that you are undervaluing yourself as a business owner. In that case, we suggest that you look at the tasks you know you have set processes for and begin to delegate them without fear that it will cost you lots of lost dollars.
We know it’s not as simple just to write down your tasks and start delegating. That’s why we at Clearinity base our business model on helping our CEO’s and COO’s see the inherent value of people, processes, and technology.
Three Ways To Manage Your Time As A Business Owner
If you followed our advice from above, you might have found some tasks you were spending your hourly rate on, something that someone at $20 an hour can do. If you have surpassed this step and wonder what to do next, don’t worry, we’ve got you covered.
Your people and support team will help you grow exponentially if used efficiently and effectively. You will need help managing the daily tasks so you can focus on the strategic plans and decisions that support the business’s ability to continue to bring in money. These people are worth the investment to hire and train as they will take on the hours you spent doing tasks that just kept the business running. We suggest that if you want to keep your staff lean, hire contractors, freelancers, and other seasonal professionals to help in busy times.
If you are flying by the seat of your coat tails every day running your business with no method or routine, you should begin looking at what the lack of processes is costing you in time and therefore money. Are you spending precious resources reinventing the wheel every time you go to do a task? If so, it’s time to establish some processes and get documentation going. Building these processes helps so that your staff can be held accountable and measured for ROI. Remember, the people performing these tasks might also have suggestions on making these processes better, saving you money from having to re-evaluate what is not working in the future.
In the event you hired on help before establishing processes, we get it! Sometimes the fires are burning so high and so fierce that delegation of tasks must happen first. If this is the case, we know that the age-old saying – two heads are better than one- is correct. Putting processes in place with your team allows them to stop putting time into reinventing the wheel every time they accomplish a task, and it also allows you to spend more time seeing what can be improved and what is already working.
Developing processes in whatever order you choose is critical for your business as it begins to grow. These processes will eventually integrate into the technology you use and how you handle change when it inevitably comes.
It is no surprise that business owners find themselves inundated with what technology platforms they could be on in a digital world. Each platform offers different ways to manage aspects of their business without a second hand. We have seen Quickbooks exponentially increase business owners’ time and resources when used effectively. The truth is, though, that even sometimes, these platforms produce more trouble than actual help. Suddenly, a business owner has an accounting platform, a marketing platform ( or several ), and a project management system. These platforms or systems are in different places, all with other people interacting and communicating with them, leading the business owner to invest time between them.
There is a solution to your business processes and supply chain management though. Inventory management software systems, or IMS systems, are cloud-based and allow business controls to centralize in one place. Yes, they are an investment in both time and money, but the return on investment is exponential. You will be able to see your financial data, operations, and inventory all in one place. Teammates and processes can be viewed by all without a lot of communication between departments. Ultimately an IMS increases your available time and allows you to see your stock with more clarity. This clarification will enable you to order within your limits and allows your teammates to continue to build effective relationships, ultimately freeing the money spent on hiring and training a revolving door of employees.
Business Owners: Value your time and grow your money
We hope you don’t leave this blog post and go back to doing what you were doing. After all, the definition of insanity is doing what you have always done and expecting different results. We hope you consider your evaluation of time and money as a business owner and see the great potential in a helping hand, a packet full of documentation and cloud-based technology.