Want to get some time back for yourself, but afraid that your business’ productivity or profits will suffer?
We hear this from so many business owners who don’t have the strategies or time management tools to confidently step away and enjoy some free time to recharge or think about their next business idea.
Ironically and unfortunately, most business owners are so busy making a living that they do not have time to really make a significant amount of money. But surely you didn’t leave your old job, take risks and devote your time to building a business only to earn yourself a monthly wage by working harder than you ever have before? So let’s find you some free time.
ActionCOACH is highly experienced in assisting business owners to work less and make more. Here are four time management tools anyone can use to make more money in less time.
Tool One: Fire Extraneous Customers
Customers who are a waste of time are like shoplifters who specialize in stealing our valuable time. We need to get rid of them or transform them into paying customers. You know who they are. The ones who don’t pay their invoices on time, never stop complaining or can’t be satisfied, those who tie up sales reps, customer service personnel, supervisors, and managers.
How do you get rid of them? You can either delete dead-end leads from the client database or send selected clients to a more appropriate business that matches their price demands.
Also consider whether you need to eliminate the magnets that are attracting those unwanted customers in the first place. Freebies for signing up might be a great plan for attracting new business, but might not be attracting your ideal customer. Remember, profit is the goal and the most important barometer of success.
Tool Two: Double the Conversion Rates of Transactions
The key to increasing profits is to convert unprofitable interactions into profitable ones. While most people crawl toward retirement on the same income, increasing profits in a business can be done in a matter of days or weeks. To prepare for a profit-boosting initiative, gather accounting data and metrics to get a clear picture of where profits come from, how many contacts are made with customers each month, and how many customers make actual purchases. Next, launch a marketing and advertising push in order to generate new customer leads, encourage existing customers to buy more, and to promote the most profitable products or services in the inventory. Let’s look at an example of this business tool in action: Assume that the business is open 40 hours per week, or approximately 160 hours per month.
To gain 10 hours per week (or take 10 hours off without losing money) it is necessary to reap 40 hours’ worth of extra profits per month (10 hours a week times 4 weeks = 40 hours). One week is 25 percent of a 4-week month. So to gain 10 hours per week it is therefore necessary to increase conversion rates – in other words, sales and profits – by a mere 25 percent. Do this by attracting more customers; by making an extra quarter of profit margin on each dollar in sales, or by lowering overhead by 25 percent.
Apply enough effort and energy to the task and it is possible to double profits in a single month. Then an entrepreneur can afford to take an entire week off every month.
Step Three: Run Businesses on Autopilot
Now the business owner has enviable options. One possibility is to close down the business for 10 hours each week, take time off, and settle for making the same amount of money per month that was generated before boosting profits by 25 percent. Another alternative, however, is for the clever entrepreneur to leverage that newfound success for progressive changes and forward momentum. They will maintain the same hours of operation, capture the extra 25 percent in profits, and then wisely reinvest those profits in greater time saving initiatives.
By working smarter, not harder, through organized systems, cutting-edge technology, innovative advertising, and dynamic employee training, the entrepreneur can prepare to put the business into the hands of capable others – which is the next step toward personal freedom. Bill Gates became the richest man in America not by making computer software, but by inventing a system for selling software around the world without having to be physically involved in each of the transactions.
Those who keep enhancing that approach and applying that kind of formula are soon retired from the business completely with a steady stream of monthly income to live on, invest in new ventures, spend on hobbies and vacations, and fulfil lifelong dreams.
Tool Four: Activate the Passive Mode of Making Money
Most people work an entire lifetime to accumulate enough assets and savings to let them enjoy passive income. Many work a lifetime and still don’t achieve it, so they are never truly free to retire or do whatever they please. Real success and wealth is only realized by those whose money works overtime for them to generate passive income. When investments and businesses are generating positive cash flow and net profits, they add to one’s bank account constantly and continually.
But you need free time (start with the extra 10 hours per week) to expand profit centres, open new businesses, sell them for a profit, and launch into other investments. The key to early retirement or rapid wealth is to build passive income throughout life, rather than trying to simply accumulate a portfolio of assets. If passive income is there, then the potential to acquire assets is made possible.
Putting it All Together: Time and Money with More of Both to Spare
Enjoying one’s ideal lifestyle becomes a fulltime occupation, thanks to the fact that it is possible to easily work 10 hours less each week without giving up productivity or income. Repeat the formula and reap 20 free hours a week. Double that and soon the nine-to-five schedule of most workers becomes transformed into 40 liberated hours of free time each week. Using the four tools outlined above will allow you to quickly reach full time retirement with plenty of money for a pleasurable and rewarding lifestyle spent with family and friends.
More information on time management tools can be found in our eBook called The Real Guide to Productive and Effective Time Management Skills here.
For advice unique to your business circumstances, call ActionCOACH today, on 02 9146 4439.