Running your own business is a series of learnings and challenges. At first you want to try and do everything yourself, partly because you haven’t got the revenue to do otherwise, but as your business grows are you spending your time on running the business instead of doing the business?
This happens to a lot of us. Think about the number of hours you are spending raising invoices, chasing payments, answering calls which are timewasters, sorting out various business insurances and so on. Think about the lost opportunity cost of doing those things instead of what you set up your business for – to do the thing that you love. After all, if you love your job it is not work is it?
How do you determine when the right time is to outsource or employ someone to help out? Well, that depends on your turnover, the stability of the firm and the cost of doing it yourself.
Let’s look at an example: Jo charges her time out at £50 an hour for designing and making bespoke evening gowns and wedding dresses. If she is spending a day a week on “admin” then that is £400 of lost time (8 x £50) a week, over a 46 working week year that is £18,400! That is a large chunk of lost revenue.
If Jo took a VA on to answer her calls, so that only the necessary ones are put through, and the VA also took care of the book-keeping, raising invoices, chasing payments and getting quotes for insurance PLUS Emma keeps an eye on social media accounts and the email inbox. Emma charges £25 an hour and can get it all done in 8 hours a week (after all these are areas of Emma’s expertise so she can do more in the time), then the net gain is 8 hours and £200 per week, not an expense cost of £200 (which would be an annual cost of £9,200 assuming a self-employed VA who doesn’t charge when they are on holiday / off sick).
By outsourcing the things that you do not like to do, or the things that are not your expertise, you are not losing control instead you are freeing yourself up. Also, perceptions of your business grow as it is no longer one person – your firm’s gravitas and credibility grow too.
Sometimes it is hard to know what to do, to take that step, well that is where the mentoring services we offer come in. You can book from an hour just to ask for help, advice, or merely to just bounce ideas off and have a sanity check.
Asking for help or guidance is not a sign of weakness, it is a sign of strength. We should all play to our strengths not our weaknesses – we get more done and our businesses are a lot more successful with us doing the things that we really love doing. What is not to like?
To book a business mentoring session drop us a line or give us a ring. Let’s get you back to doing what you love!