How Doing This One Thing Can Help You Build a Better Business
You learn a lot about business (and life!) when your parents are entrepreneurs. Hard work, determination, and grit are an everyday way of life, and you realize that running your own business is not for the faint of heart. We’ve witnessed and felt the long hours, overwhelm, and stress, yet understand the fulfillment that makes it all worthwhile.
It’s finding the balance and formula that makes it all work, but how do you get there?
As entrepreneurs and now the founders of a boutique financial firm of our own, we understand firsthand the potential traps that many business owners fall into. We know you’re extremely driven and will do anything it takes to make your business successful. We also know there have been times you’ve gotten sucked into the, “If you want it done right, you’ve got to do it yourself,” mindset.
It’s a disservice to the business you’re so committed to if you try to do it all yourself. You can’t be expected to handle it all.
Trust us, it’s not sustainable.
Why Entrepreneurs Try Shouldering Too Much
We understand that questions and concerns like these may haunt you –
How can I justify outsourcing if I’m just starting out?
When resources and money may feel tight, why don’t I just handle it myself?
Why hire other people to do things I can just do on my own?
The same energy, passion, and work ethic that fueled you to start your business in the first place shouldn’t make you think that you need to control everything. Yes, you had a vision and then turned it into a business, but don’t think you need to take it all on.
“There’s a ceiling for every business owner. It’s either capacity or competency.” – Ron A. Pac, Owner of Trivium Point Advisory.
More About “Doing This One Thing”
“I find that many entrepreneurs are trying to do everything when it would be cheaper and more time-efficient to delegate, even if there are monetary costs associated with that,” said James Altucher, American hedge-fund manager, author, podcaster and entrepreneur who has founded or co-founded over 20 companies.
As the title of this post reads, How Doing This One Thing Can Help You Build a Better Business, you may have figured out by now what the one thing is –
Successful business owners know when to delegate.
True empowerment is entrusting others to help, and that real leaders hire, train, and empower the right people that might be better suited to a particular task.
One of the biggest challenges facing entrepreneurs is having the mindset that they should do everything, especially in the beginning when money and resources might be limited.
In reality, knowing when to call in an expert is the easiest way to free up your valuable time so that you can actually accomplish more.
Make the Investment in Yourself
Time – it often feels elusive for an entrepreneur.
“Many owners will occupy their time with things they are comfortable doing that they shouldn’t be doing, instead of focusing on the things that need to get done but are uncomfortable,” says George R. Gerhard, Owner of Trivium Point Advisory.
Studies conducted by the American Psychological Association show that multitasking reduces productivity by about 40%. In fact, juggling too many activities at once ends up costing the global economy more than $400 billion annually.
It makes sense. There is a cost of trying to do too much as an entrepreneur. That can come in the form of hard and soft dollars. Whether it’s leakage in the business cash flow, derailing you from executing the vision, or not focusing on the key things that made you successful in the first place, your clients or customers.
“When a business owner does too much, they can’t focus on the bigger picture. Getting bogged down into something you’re innately not good at, may prove to be extremely costly for your business,” continued Gerhard.
By outsourcing certain areas of your business, you are freeing up your time and making the best investment you possibly can – in yourself.
Remember Your Strengths
“The COVID-19 pandemic has been extremely devastating on small businesses, however, there is a common theme among our clients that have prospered during this very difficult economic time. They’ve identified what they were good at, delegated what they could, hunkered down, and focused on their core strengths,” relayed Pac.
Quite often knowing what NOT to do is just as important as the things you take on.
Pac continued by saying that successful small businesses budget for things like human capital, technology, coaching, and financial guidance. He has seen business owners earmark the 1% to manage the wealth that their business creates. The ones that don’t, have a tendency to experience frustration, lack of clarity, and an overall sense of defeat.
Stay tuned for the next installment of The Hidden Cost of Doing it All blog series where we take a deeper look at how many successful business owners use the 1% rule to become more profitable.