It is common for business owners to get caught up in the day-to-day operational aspects of their business. They feel they ‘need to do everything’ for the business to be strong, as being the owner, they have invested a great deal of time and emotional capital in their venture. They have also invested a great deal of money.
But what if, by doing everything, you are actually harming your business?
What makes the most sense for your business structure to make the most amount of money?
Often, owners don’t think they have the time or, crucially, the money to employ someone and even if they do hire someone, they struggle to identify how to best make use of that resource and what they want that employee to achieve.
I was once told by a previous employer that their time was worth more than mine, and therefore I should be completing a certain task. At the time, this attitude and comment didn’t make sense to me, but now, as a business owner, it makes complete sense.
The best way to really discover the value of your work is to put a price on it. What is the appropriate hourly rate for the task you are completing?
My skills, knowledge and experience in Human Resources enables me to charge a certain rate to complete work for a wide range of clients. However, that same rate does not apply to all other areas of my business.
A great way to really understand this within your own context is to think about the different types of work that you complete: bookkeeping; social media and marketing; administration; and sales, to name just a few. The hourly rate can differ widely for each of these roles.
Think about your hourly rate (based on your skills and experience) versus the hourly rate actually required to complete this work.
You are probably paying too much for someone of your calibre to be completing these tasks. That time – and money – could be far better spent building the business.
So start thinking today about what tasks someone else could be doing.
A great place to start is Resourcing your Business: Who? When? How many? which will teach you creative ways to access staffing solutions and extra resources without the fixed costs.
Or to get more in-depth help, contact Small Business Society today to help you work through options so you can start spending time by doing the things that add the most value to your business.
The information provided in this document is for your guidance only and is general in nature. It does not constitute as legal advice. It is the responsibility of the individual to seek legal advice where required.
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About Kate Tongue
Kate Tongue is the founding Director of Small Business Society.
She is a qualified and experienced Human Resources professional with more than 10 years of experience across the private and public sectors.
Her particular interest and experience is in managing the employee life cycle, delivering process improvements, and Human Resource strategy.
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