One of my favorite entrepreneurial phrases is “Busy = Broke.” Entrepreneurs have a tendency to believe that they should do everything themselves. It is important that entrepreneurs delegate for maximum success and here’s why.Let me give you an entrepreneurial hack that will change everything: smart entrepreneurs delegate in order to stay sane and satisfied.
Overworked entrepreneurs seem to think that running around and personally overseeing every detail is going to save money. Unfortunately, this is a misleading notion.
Why should entrepreneurs delegate?
1) Opportunity cost
What you are actually doing when you try and do everything, is impeding on your capacity to do the very thing that you were so good at from the very beginning of your business.
If you are a painter, then you have no business being an accountant. If you are a business consultant, you have no business being a website designer.
It’s not that you can’t do it, but it’s not the most efficient use of your time.
If you spend the majority of your time doing what makes the most money, you will find you this to be a more lucrative approach. Not only will you make more money, but you will also have enough extra money to delegate all the necessary business operational costs.
This will, in turn, allow you to earn more. Now, I didn’t say delegation is easy and that it doesn’t come with some sacrifice. But entrepreneurship is all about sacrifice.
The difference between a person who is successful and one who is not is that the former individual makes the right sacrifice. This is the sacrifice that will increase his or her gains. Delegation is one of those sacrifices.
2) Long-term benefits of developing a professional service team
Building a business is like building a house: you need a good foundation and structural materials if you want it to be durable. In order to achieve short-term goals and sustain long-term success, you need to develop a good professional service team with expertise in the different areas necessary for your business.
Examples of the professionals you might engage are a PR consultant, an accountant, a financial advisor, a banker, an attorney, a digital marketing consultant, a printing company or a photographer.
Every business is unique and thus, the composition of the professional service team will vary by business.
A professional service team is an essential factor that most entrepreneurs overlook because it is a preventive measure, but it is one that can literally be the death of your business.
For example, if you do not engage an accountant early on and begin a tax strategy, in particular, if you have employees, the potential tax liabilities and penalties can easily bankrupt your business.
In fact, a leading reason businesses fail within the first three years is due to tax liability. Another common pitfall is waiting to engage a corporate attorney. The most valuable asset of many newer businesses is the goodwill associated with their brand.
Business owners spend hours and thousands of dollars building up a brand, only to find that they cannot protect their intellectual property or receive a cease and desist letter requiring them to refrain from using their logo.
This would all be avoidable if people engaged a legal counsel and protected their intellectual property early on!
Establish these relationships early and develop a strategy to create a strong foundation for your business.
In doing so, you assure that all the time and hard work you invest in your business will have a high and rewarding return.
Outside of inventory and intellectual property, you are your businesses most valuable asset. In order to protect and nourish yourself, you need to make sure that you are well-rested mind, body, and soul. How that is achieved is up to you.
Whether it is taking a run, joining a team, taking a music lesson, or going to the spa, it is just important to make the time to do something that gives you happiness outside of the business.
This is key to your mental resilience and endurance.
Being an entrepreneur will take its toll. It is not a profession meant for the weary or faint of heart.
Those who can endure do so by securing the mental fortitude and often spirituality to keep working at their dreams no matter what comes their way. It doesn’t mean there are not plenty of tears and moments of pure fear.
But a healthy mind, body, and soul will ensure that you come through every time.
It may seem like a simple thing to say, “take care of you,” but many entrepreneurs get so caught up in their business that they become their business. We are more than what we do and keeping that defined line is key to keeping things in perspective.
It will allow you the strength to see through the times when there appears to be no way out.
So whatever reminds you of why you made the decisions that lead you to your present circumstance, whatever makes you smile, puts your mind at ease, or refreshes your spirit- make time for it! Nourish it!
Remember who you are and how great that person is. Then take a deep breath, and go out at conquer!
Have you ever taken on too much work? Tell us how you remedied the situation by delegating tasks to your trusty team!