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Attention small business owner – are you wearing too many hats?

The reality is that you may need to wear some different hats from time to time. The trick is to make sure you’re wearing the right hats for your business stage, including the most important one – strategist and innovator. The right hat largely relates to the ratio between hourly rate and the value of the task.

The four key categories

  1. $10 p/hr –  low skill required (repetitive, administrative)
  2. $100 p/hr – requires skill but still repetitive
  3. $1000 p/hr – tasks that move your business forward and achieve growth or large sales
  4. $10,000 p/hr – strategy development and high-end client contact

We all want to earn the big wages – or in your case – earnings. As a small business owner you eventually want to be spending your working day earning the 10 grand an hour and delegating all the tasks worth $10. For most of us, it’s a gradual transition. Here’s how to get started:

  • Write a list of all the tasks you do every day. Include the business related tasks you do from home – and rate them according to the categories above.
  • Start small – just a few hours a week might be all you can afford at first – and begin by  outsourcing the lowest value – or repetitive – tasks. This might include things like cleaning or  receptionist duties.
  • Think systems in your business – everything that is repetitive should have a manual or guideline. This will help ensure quality and consistency standards so that you can spend less time supervising repetitive tasks. But, you’ll still know that they’re being done the way you need them to be done.
  • As your earnings increase gradually, delegate or outsource every repetitive task and start sourcing people with specialist skill sets who can perform some of the high-end tasks better than you can. This will vary from small business owner to owner but it might include tasks like marketing, accounting or sales philosophy.
  • Make sure you’re using the hours you’ve now got free to work on activities that take you in the best direction and grow the business in the most profitable way.

It might seem like you’ll never get there but with the right business model, you will.

 

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