Want to earn more money? If you're not earning the income you'd like to earn, ask yourself, "Am I working every business day like someone who makes $X thousand a year - someone who makes roughly $Y every money hour** of the day?" Then determine if you're valuing your time at that level? (If you're not, no one else will.) And finally, start to develop habits that keep you focused on a daily basis - doing the most important things first to make sure you're making the most of your time?
To give you an idea of what it takes to earn business revenues equal to various annual salaries, I've broken it down into the hourly rate an individual would need to earn to achieve the following...
$50,000/yr = $40 every money hour**
$75,000/yr = $60 every money hour ($1 a minute)
$100,000/yr = $80 every money hour
$120,000/yr = $96 every money hour
$150,000/yr = $120 every money hour ($2 a minute)
$200,000/yr = $160 every money hour
$250,000/yr = $200 every money hour (more than $3 a minute)
Greater than $250,000 - you probably don't need the reminder - "Rich enough not to waste time." according to Gordon Gekko. Getting your head around this idea is starting with the basics. If you want to seriously start converting your time into money, give this some thought...
If you were somehow able to get rid of all your “$10/hour” tasks (we all have them but we shouldn't do them during money hours) and only do “$100/money hour” work all year, you'd earn just under $125,000 for the year. But if you shifted just 5% of that "$100/money hour" work to $1,000/money hour work, you’d make over $180,000. So a 5% change would boost your income by 45%!
Business owners should always look to multiply their time. That means for every hour you spend working in or on your business, it should be earning you revenues beyond what you could charge for just the time you put in. If you can "charge yourself out" at $100 an hour, you should look for ways to invest each hour of your time in such a way to earn your business a multiple of that $100 - two times, three times or even ten times. That's how you convert your time into money in a way that scales. Start with simple, small things like training your staff to do some of the more menial tasks that you might still be holding on to and build from there. To do otherwise is a waste of time, effort and potential earnings!
"Big doors swing on little hinges." - W. Clement Stone
**money hours = hours during working days where you can talk with prospects and customers and
make good things happen (converting time into money). The phrase "money hours" was coined by Sam Parker. I've altered the definition of it to match up with typical Australian work days & hours. Basically, there are 1,242 money hours in a calendar year. Drop me an email if you want to see the detailed maths and assumptions!
There has been a great deal of discussion lately about the lack of leadership in today's world - in government, in business...in general. That's because what often passes for leadership today is a shallow substitution of techniques for genuine substance. This substitution can be seen in almost every aspect of business and life, not just in leadership. Businesses from multinational corporations to professional sports teams to family owned enterprises are all decrying this shortfall of leadership. In response, an entire industry has been established, promising to provide us with knowledge and expertise in the art & science of leadership. With more choices than ever for people to be educated in the finer points of becoming a leader, why is it still so rare to find someone that can actually lead? I believe that it is because the focus is on teaching leadership techniques that completely ignore the core issue of leadership in the truest sense of the word - substance.
Think of all the programs, books, seminars, gurus and even businesses dedicated to spreading their lessons in leadership. The vast majority focus on "how to" and techniques instead of starting with an understanding that substance, in all things meaningful, must precede process. Chris Lowney summed this principle up well when he said, "The beguiling but misleading promise implicit in "7 Steps To Becoming a Leader" is that one will actually become a leader by completing the steps. Anyone who has tried to lead oneself or a team knows that nothing could be less true. Personal leadership is a never ending work in progress that draws on continually maturing self-understanding."
The business world is full of evidence that this is true as well. Think of substance as the answer to the question, "Why are we doing this?" Only when you start with some kind of meaningful substance can you hope to be tutored in specific techniques that will better your performance. Think of the implications of this truth not only for leadership, but for management, networking, planning, strategy, employee & customer relations - you name it, substance has to precede technique in order to achieve anything meaningful.
Leadership has become an industry because, as businesses look to achieve greater "returns" they constantly seek "competitive advantage" and the particular "steps" that must be followed to get them to their "company vision". This is backwards. What real leaders do is come up with a compelling and meaningful ambition, not a hollow "vision" that only ever gets mentioned in corporate handbooks but never achieves anything of any real value. Developing this ambition requires making a conscious choice to trade in narrow definitions of business "success" for the broader and more aspirational goal of significance. Once this has been established by a self-aware leader, then the people skilled in the necessary techniques can be engaged and put to work on achieving the ambition. Indeed, a leader that begins with substance in every aspect of their lives and business is the only one positioned to realise what actions are really necessary to achieving the goal. Furthermore, clearly understanding and being able to articulate the business' ambition will allow a leader to find likeminded partners to help with the required tasks instead of trying their luck with the vast pool of "experts" offering advice.
This is an important point that should not be underestimated. There are good coaches, mentors and consultants in the world. Many of them are invaluable to their clients when it comes to putting the right knowledge and wisdom together for the purpose of achieving better outcomes. But even the most skilled technicians can't coach you into your ambition, or your company vision to use the common turn of phrase. They might be able to help you clarify it or focus it, but the substance of it must come from the leader responsible for leading his or her team to the final achievement of it. It can be helpful for a leader to work with someone they trust to question and challenge them on what it is they really want to accomplish in the first place - before hiring a consultant to implement a change program from the perspective of any particular "technique". But foremost, leadership requires the self-awareness to be confident in the knowledge of your strengths, weaknesses, values and world view. Starting with personal substance, you can then establish a compelling, meaningful business ambition that goes beyond the traditional ideas of success measured only in financial terms measured on a profit and loss statement.
What you get by reaching your goals is not nearly as
Every small business owner in Australia should be praying desperately for an LNP victory at the upcoming election. Labour’s poor track record and recent policy announcements that are
clearly detrimental to small businesses – capping self-education expenses and eliminating salary packaging benefits for business vehicles to name two – mean small business can’t expect Labour to do anything for them if they’re returned to office. On the other hand, the Coalition has made promises to take Australia’s 2 million small businesses and their 7 million employees seriously if they’re handed government. It just makes sense that, no matter your party affiliation, it would be ballot box suicide take 60% of the nation’s workforce for granted. You’d think so at least.
But other than the typical post-election boost in consumer and business confidence, business owners should know that only one thing is certain – who wins this election will make very little difference to whether or not your business succeeds or fails. Neither party seems motivated to put
small business at the forefront of policy considerations. So if you’re hoping for a drastically different business climate after September 7th, you’re likely to be disappointed.
A recent survey of 1,096 small businesses found that their key demands from the government are: reduced costs of doing business, reduced tax burdens (financial and compliance), reduced red tape and reformed workplace relations regulations. Any political party capable of delivering on even one of these concerns would be doing well. But there are bigger issues facing small business today, and I think the survey completely misses the point. Because no matter who wins the election, little if anything is likely to be done to considerably reduce government burdens on small businesses.
If business owners want something to be concerned about, they would be better off worrying about committing the three cardinal sins that I’ve seen repeatedly amongst SME’s over the past several months.
The first sin is not having any established systems in your business. With good systems, your business can overcome a lot of red tape and government burdens. Without them, even the most basic functions can become difficult to keep track of.
The second sin is lack of focus. Too many business owners don’t have a clear idea of exactly what they want to achieve and how they’re going to achieve it. Flying by the seat of your pants or taking the “shotgun” approach to business development does more damage than any political party ever could.
The third sin is believing that asking for help or advice of any kind is the equivalent of admitting failure. In fact, the most valuable assets you’ll ever have as a business owner are good advice and
My advice (if you’re asking) is vote LNP. And then take a cold, hard look at yourself, your business and what you’re doing (or not doing) to make the next three years successful regardless of who’s occupying the Lodge. BACK YOURSELF!
Alan Blair has over 15 years experience in business performance consulting. He delights in making his clients more money, finding them more time to enjoy life & helping everyone reach their maximum potential.