Do You Owe Your Business
Does your business pay you for the work you do? Or do you owe your business?
The answer is directly correlated to how your time is used. It’s the difference between doing work that is valued at $15 an hour rather than work that’s valued at $100 an hour. If your day consists of making changes to a client’s policy; or, calling a client back who wants to reschedule their appointment; or, talking to an underwriter about a new application; you may owe your business (even if you only do this type of work for a few or your best clients)!
Are you cringing at the thought because it’s true? If you feel there is no one else that can do these tasks, or that you can’t afford to hire someone to do them. We challenge you to calculate the true cost! Because the fact may be your business can’t afford NOT to hire someone to do these tasks. Because for your business to thrive and be sustainable, a different business model needs to be designed.
Here’s why- Your business needs you to see people, identify financial gaps, sell products, and give clients peace of mind. However, if you do other service or administration tasks instead, you are investing your business resources poorly. To create more revenue generating capacity, your business should have someone else performing the non-selling tasks.
For example, if you are spending 15 hours a week on service or administration tasks, how many appointments with prospects are you NOT having? How many sales are NOT closing? How much revenue is your business NOT generating?
Let’s put this example into numbers:
You hire a team member to work those 15 hours and pay them $20/hour. That calculates to over $300 each week. You'll also need to add in extra for FICA and benefits so let's plan on additional $50 a week for a total of $350. A lot of money!
That’s only the first part of the example. If you now have 15 hours a week for meetings and selling, how much revenue could you bring to your business? Let’s say you would have 5 more appointments each week; and from those 5 appointments you gain 2 additional sales that generate revenue of $500 each. That is an additional $1,000 of revenue each week. When you subtract out the new team member’s pay of $350, you are still coming out ahead by $650 each week; approximately $2,600 each month; or, an additional $33,800 each year!
The above example confirms the need to redesign your business. If you adopt this mindset that you can’t afford NOT to hire, where do you start? We suggest you start with what we call a “Stop Doing List.” Start a list of tasks and activities you should stop doing based on their value to your business. This list is the start to a job description for that next hire!