When building or scaling any business, the ability to create an effective team is critical. Fortunately things are changing. The Old Model is being replaced by the New Model. What’s The Best Way To Build A Bigger, Better, Smarter & Faster Business?
Rule #1: Hire people that are better & smarter than you. Fast. → Ego is expensive.
Rule #2: Calculate the value of your own time and never sell it short. → Min $50/hour / $100K a year
Rule #3: Write a list of “Things only I can do”. → Be really honest, don’t underestimate talent.
Rule #4: Write a list of “Things I Should not be doing”. → Anything worth less than €20 an hour.
Note: This is only about work, your personal life and hobbies do not apply here.
Rule #5: Master the art of delegation and outsourcing (not this is the LAST rule, start with the first ones!)
“As all entrepreneurs know, you live and die by your ability to prioritize. You must focus on the most important, mission-critical tasks each day and night, and then share, delegate, delay or skip the rest.”
How calculate the value of your own time:
Let’s say you earn (or want to earn) about a €100K a year.
Now divide €100K by the number of days that I work in a year… say that’s 250 days.
So, €100K divided by 250 is €400 per day (this also how you can track after EVERY day – every week – every month, if you made this number – and if you’re on track).
If you then divide this by the typical 8-hour day. That equals €50/hour. So this is the exact amount of money my time is worth.
Therefore: IF I’m spending ANY time doing ANY work that can be outsourced for, say, €20 an hour or less, then there is a BIG problem.
Whether this is occurring in my own business or my day job or wherever – it will never get me to where I am worth my time. Regardless of how I justify it, the math doesn’t lie. If I am doing work for €20 an hour – or even less – when my time is worth €50 / hour, then it’s not the right to do.
I need to be doing work for a minimum of €50 an hour to move along in my business.
What ends up happening, believe it or not, is that the lower cost jobs are almost always more demanding.
Things like getting accounts done, answering my inbox or doing internet research are often more demanding than designing a product launch.
No one is banging on my door telling me to become more profitable. That’s why the important task continually gets pushed back and if I am not careful my schedule is filled with these low cost per hour tasks.