Most owners think their purpose is to make money.
In fact the owner's purpose is to build a business that makes money.
The problem we see is that most owners either don't make enough money or their business consumes so much of their time they don't get to enjoy the fruits or their labor.
The solution is to remove them from money making activities and have them focus on business scaling activities.
Done well the business will make more money and the owner has more time and personal freedom. (After all, this is probably why they went into business in the first place!).
It's all about where you spend your time.
We monitored the activities of a number of business owners. On average they worked 2,000 hours and paid themselves $120,000 per year This translates to an average hourly rate of $60. We shadowed these owners for a month to see the types of activities they undertook on a daily and weekly basis:
Notice that the average owners spent considerable time on lower value adding activities, being mired in administration and firefighting.
(Actually, we think firefighting ought to have a negative hourly value as it does not allow employees to build the disciplines to solve problems when the owner has to step in and fix things. Sure they feel heroic but their employees feel stupid and are even more reluctant to try and solve problems in the future thereby cementing the owner into future hours of putting out fires. Why not build scaling capability and train your employees in fire prevention techniques).
Let's contrast this average with the highest money makers:
Same number of hours. Very different results. In fact, these owners went on to spend less hours and less stress in their businesses. More detail on our research can be found in this paper.
Monitor your daily activities for about a week. Note where you spend your time in these 7 activity types. It may reveal opportunity to reshape your time and ultimately your wealth creation capability.
At Flooring by theNumbers our focus is helping your improve your business. That requires capable people who can take the load off the owner. We have a way to build that capability within your business. Go to flooringbythebusiness.com/academy to learn how we have packaged leading practices with an innovative learning platform.
Oh, and if you want more on our research you can get it here:
Time is Money