I see this over and over with small business owners: the desire to do everything yourself. Is this you? If it is, are you happy about it or are you overwhelmed? I give talks about time management and always ask about this, and have yet to see anyone say they were happy about doing all the minutiae of their business. And yet, I often see resistance to giving it up. Why is this?
For some it’s a matter of pride but I think that’s the minority of you. I believe for the vast majority, it comes down to money: you think you can’t afford to get help. How do you know? You might think it’s as simple as looking at your bank account. I suppose if you don’t have a penny in there, you shouldn’t spend anything. Most of us are not in that position, though. We have some money available but perhaps think getting administrative or bookkeeping help is too expensive, or else think the money should be spent elsewhere. How do you decide?
The most effective way to decide is to think about how else you would be spending that freed-up time. Most small business owners I talk to will say the bulk of their time should be spent on sales, which I agree with. That could be making sales calls, going to networking meetings, having 1-to-1s, and so on.
What small business owners often don’t think about is that your sales time has a monetary value attached to it. If the idea is to make money with your company (duh), then you should be maximizing any and all opportunities to do those tasks that bring you money. When it comes to sales it’s typically a numbers game, so the more you do the more you make. If you’re spending time doing your own administrative work (scheduling, filing, research, etc.), you’re not spending that time selling. Which brings your numbers down. Simple.
I have a worksheet I use to help business owners figure out what their sales time is worth. It helps you figure out what your gross margin per sale is, how much time you spend generating leads and closing sales, and ultimately what your gross margin dollars per sales hour comes to. If you’d like to go through this process with me, please contact me.
Ultimately, if your sales time is worth more than the cost of administrative help and bookkeeping, then it’s a no-brainer to outsource them. The good news is that the majority of business owners do make more than that. I can almost guarantee that that will be true for you. (Otherwise you wouldn’t bother with your particular business—it just wouldn’t be lucrative enough.) If you outsource bookkeeping and admin help, not only will you get some monkeys off your back, but you’ll likely make more money, too!