Spending Too much Time on Administration

How much time do you spend each week on the following types of tasks: running to the post office, sending out invoices, routine customer service, answering the telephone, etc?

Is that a good use of your time?

Before you answer that question, complete the following exercise. Take your annual projected revenue and divide it by the number of hours you work in a typical year. This number represents the amount of revenue you as the business owner are ultimately
responsible generating/managing per hour.

For example, if you expect to make $1 million this year (and we assume that a typical year has 2,000 working hours) your hourly rate would be $500.

So, before you complete that next administrative task ask yourself “Is this a $500 an hour activity?” If the answer is “no”, then hire someone else to do it. The general rule should be “If a task doesn’t require my unique set of skills or expertise, I should consider having it done by someone else”.

But, what if you can’t afford to hire someone?

The simple answer – figure out a way to make it work. If you don’t, you will never be able to get your business to the next level.

• How much is your time worth?
• Do you spend too much of it on $25 an hour tasks?
• What should you be doing with your time?