How often do you back down or turn a blind eye in your business?
Do you ever
… agree to a lower price when you don’t want to?
… relax your payment terms?
… accept poor performance from a team member?
… redo someone else’s work without telling them?
… undercharge but over deliver?
This is the surest route to having huge money holes in your business!
To prevent this, you need to have a set of rules for your business. You need to develop rules that will work specifically for you and ensure that you make the right decisions and the right choices on every issue.
In this #businessrules series, I share the rules that work very well for me and for many of my clients. There may be something here that will help you mend some of your own money holes.
Rule 1: My 10% rule
Most start-up entrepreneurs and self-employed people are very comfortable with the idea of investing time and money in building their business or in calculating return on investment on the money they spend. But how many of them invest in themselves?
In particular, do you invest in your ability to work ON your business? You are probably well aware of the difference between working on rather than in your business. And you may be confident that you are on top of your game at the IN part. But are you honing and applying your ON skills?
Most entrepreneurs work very hard in their business, but struggle to get things done and find that the month is always longer than the money. Yet they could reduce these problems if they were more efficient in working on the business.
“But I don’t have time,” I hear you say.
My answer is to implement the 10% rule. Dedicate 10% of your working time per week and 10% of your turnover (yes, you need to spend money) to study how to work on your business. Put this learning time into your diary and add this business expense to your budget.
For example, if you work 50 hours a week in your business, set aside 5 hours a week to read something or learn something about business, time management, finances, etc. Invest in books, seminars, training and coaching.
You can’t afford not to do this. Every successful entrepreneur will tell you that continuous learning is a critical part of running a profitable business. You wouldn’t think of investing in property or shares without putting something in, would you? The same applies to investing in yourself.
No matter how daunting it is to think of spending as much 5 hours a week on self-development, you will reap exponential rewards from the improvements you will be able to make in how your run your business. Think of it like compound interest. You only need to invest 10%, but the ROI will compound month by month and year on year, giving you many multiples of 10 in return.
DAILY RULE: What have I learned today and how am I going to apply this in my life and in my business?