As a business coach, I find there are two things that business owners find difficult: doing tasks in order of their importance and doing tasks that are of high value. The efficiency of your use of time will determine how profitable your company is. How much of your working week, is spent doing tasks that have the highest possible income value?
Take an accountant who charges £50 an hour when face-to-face with a client. If this accountant spent their full 40 hours each week with clients their weekly income would be £2,000 (40 x £50 = £2000). Assuming this accountant works 50 weeks a year then they have a potential income of £100,000 (50 x £2000 = £100,000).
Now imagine the accountant spends only 20 hours a week with clients. The other 20 hours are spent doing lower value tasks such as book-keeping. An employee could carry out these lower skill tasks for £10 an hour.
The accountant who spends only 20 hours a week with clients earns £1000 (20 x £50 = £1000) plus £200 for the other 20 hours a week on book-keeping (20 x £10 = £200). The total value of their working week is now just £1200 instead of £2000. This equates to an annual income of £60,000 instead of £100,000. That’s £40,000 of wasted potential and profit due to poor prioritisation and time use.
In business, it is crucial to take an honest look at the following questions:
- What do you have to do that no-one else can do?
- Do you allow low-value tasks to consume much of your day?
- Do you convince yourself that its easier and faster to do something yourself than train someone properly?
- How often do you trade your most precious commodity for a bit of cash?
- Is enough of your most precious resource being spent with the people you love, and doing the things that make you happy?