Want to get rich? Do less!
As I have progressed through business and in my career there are few quotes that I have found to be truer than this:
“The less I do the more I make!” – Ron Legrand
At first glance this quote can fool you. It’s not about working less, but about working smart! Too often high achievers find themselves involved in every detail of their business. There are many reasons for this, below are just a few:
Doing less is not about doing less of everything; it’s about doing less of the things that do not make you money and spending more time on the areas of your business that make you the most. So, how do you know what to spend time on and what to delegate? There are two very simple answers to this question.
First, do not spend your time doing anything that you can pay someone else to do for less than what you are getting paid. This may seem confusing but it is actually very simple to figure out this number. Simply take the total amount of money you expect to make this year and divide it by the approximate amount of hours you will work.
Yearly Income: $100,000
Weekly Hours Worked: 50
Weeks in a Year: 52
Formula: Yearly Income / (Weekly Hours Worked x Weeks in a Year) = Hourly Rate
Formula in Example: 100,000 / (50 x 52 = 2,600) = 38.46
Hourly Rate: $38.46
I know this seems very elementary, however if I asked 10 self-employed individuals what they make per hour I would be lucky to find one that would know. In this example, a person making $100,000 per year would be costing themselves money any time they engaged in an activity at work that they could hire someone for less than $38 an hour to accomplish. It is important to note that this only works if you replace the time you saved by delegating task with activities and duties that help to increase your total income. This is not hard to do as, for most if not all businesses, the greatest limiting factor of the money we can make is the time we have to spend on high level activities.
The second way to differentiate between what you should do versus what you should delegate is accomplishing the tasks that only you can do. We all know what these tasks are based on the business you lead or work in. For me this includes duties such as negotiating contracts, approving property purchase values, deciding on the growth patterns of our business, casting vision, having the final approval on any large purchases and the hiring and terminating of personnel are just a few.
So remember, the less you do the more you make. Now figure out your hourly rate and identify those activities that only you can do and I guarantee that if you adopt this philosophy your earnings will increase!
What are some tasks that you currently do that you can delegate to increase your profitability?