As business owners, Making More While Working Less obviously speaks to most of us. You might be struggling to divide of still seeing clients face to face as well as leading your business. You might have look to coming off the tools. We all like to work a little bit less and make a little bit more.Real businesses with physical locations with actual staff, you as the owner don’t have to be in there. That’s a choice. And just know that. If you’re in there and you think that’s the only option, then I challenge you to rethink that. Click To Tweet Usually, having a business or a small business means you’re now working a lot more hours than when you’re an employee. You’re working for a more difficult boss, your self. And you also get the extra burden of everyone else’s stress and hassle. You know government legislation, taxation requirements, humans and customers and landlords and all this stuff.
We had an amazing opportunity to have James Schramko in our Grow My Clinic Podcast Episode 008 where we talked about his book Making More While Working Less.
Here are some key concepts we can get from the book on how to make more while working less.
Identifying Where Your Best Return Is From
Since we can measure time, we can start comparing our activities and use this calculation as a way to score certain activities and see which ones are better than others. Not all activities are equal.
The simple calculation is the amount of profit you have divided by the number of hours that you took to get it. Now on a macro level if you are still a health professional in a job, your wage would be your profit.
Once we start calculating this, we calculate by product line. For example, as a clinic owner, I might look at how many hours am I practicing as a health professional versus many hours I spend managing the business when the other clinician when there practicing. You might find out that you’re actually making similar money in both cases.
In which case, you could stop actually doing the clinician work. You could step back and actually just hire more people to do that stuff.
The goal of course is to focus on the highest return activity as possible. And you might find for every hour or two you spend on that, that is far more profitable than the actual practice itself.
In the health industry where typically it is bricks and mortar clinics and you need to be face to face and often hands on with clients. The nature of healthcare is changing, the tools at our disposal. We can now do consultations online. And it massively decreases your overheads in terms of rent and other expenses.
So that effective hourly rate essentially is looking at each of the different activities you do in your business and spending more time on the ones that have a better hourly rate.
The 64/4 Rule
So not all task are equal. And a lot of the things that you are doing are not actually helping you. What that means is that you could stop doing some things and have no negative impact except maybe you get a positive impact, you know not as busy.
The 64-4 is simply this: the 64% of your results are coming from 4% of your inputs, if you had 10 different clinicians working for you, one of them will most likely outperform all the others and one of them would be terrible and soaking up a whole lot of your time and energy.
And it’s tempting as the owner of the business to spend a lot of your time on the worst performer trying to lift them up, instead we might use this principle to think, we should just not spend and our energy on the worst performer. Let’s drop them off the bus. And let’s train the others on how to do whatever it is the top clinician’s doing. Let’s benchmark off their performance and see if we can lift the bar for everybody.
In other words 4% of the things that you’re doing are getting you almost 2/3 of your results. So if you strip away all the stuff that doesn’t matter, you’re left only with the important stuff.
You can think about your favorite t-shirt or your favorite pair of shoes. Probably you have 10 t-shirts and I bet you there’s one or two you gravitate towards all the time. And there are some that never get a look in. It might be the same for meals or plates or bowls or cups. You’re probably using some all the time and other ones hardly ever. That just applies to most things.
Chasing the Shining Objects
As a business owner, you’re getting approached by every marketer under the sun, selling sign writing, business cards, printing, telecommunications, printers, computers, and all these stuff.
You can just set a 12-week review period. So if a bright shiny object comes along, you just put it aside until your review period. Because it’s not so far away that it can wait.
You can just say, “Thanks very much. Well review these on the 1st of June,” and just put in to aside. So basically put in a “later on” file, and you’ve got a review date where you’ll pull that file out and look at everything that’s in it.
So if you know what you’re doing over the next 12 weeks, nothing will get in your way.
It’s like a horse with blinkers or like a train on train tracks. You’re not taking a left or right turn because you know exactly where you’re going. But you will review it at the next station.
Recurring Business Model
Recurring Business Model could be a subscription, membership, and affiliate income that’s coming from referring people to a service or a product that is good for them.
So there is this ability for you to think about how you might run your business differently.
A lot of people who had a physical shop are now finding they can run virtually and they don’t have to have that hassle.
If you have a yoga studio for example, you could actual start telecasting your yoga lessons for people who can’t make it into the studio. Then, you could charge people a monthly subscription for that where they pay like $7 a month or $17 a month to tune in and get – be virtual in class, live with the instructor, and can be even be popped up on the screen and interacting with the studio.
We just look to other industries and see how this works. There are still other methods, too.
Lifestyle With No Compromise
It is important to set up a lifestyle where you’re still getting amazing outcomes but not at the cost of your family or your lifestyle.
There’s a lot research to suggest that most mistakes are made because people are not getting enough sleep. You would want to be at your best when dealing with a client, to be sharp instead of blunt and to do that, you need to recuperate.
And you need to have time away from your device. You wouldn’t want to be working more than 20 hours a week on your computer or in your business. You need down time.
If you want to grow your business stronger and make a fantastic service offering, you’ll need to have some time to work on yourself.
And since a good system is put in place and is set up in your business, you can achieve this lifestyle.
Professionals are so stuck in a mindset that we need to be face to face and hands on. They think they need to be hands on and physically present. That’s a jail cell when you’re working in four white walls.
And this is the message: you don’t have to do that.
The only excuse is if you’re still sorting out things that are making you too busy, or if you just don’t want to go better in business. Maybe you’re scared of what success might look like. It could be confronting. Most people aren’t prepared for such a profound abundance of time and money.
Look out and start your industry because in most industries, they’re all doing the same stuff. Take one thing from one industry and apply it to another. Just keep cross-pollinating best practices.
Some people give up too early, but, just start!