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Do you spend enough time on your business rather than in your business?

Do you spend enough time on your business rather than in your business?

Date: 2014-01-17
Most entrepreneurs start off by doing everything. They buy the product's, deliver, invoice and keep books. As you grow you will be working longer hours with the inevitable stress that comes from doing too much.

I was talking to a friend of mine who is a consultant and his charge out rate was R2000 p/h. There are roughly 1600 working hours per year so he should have been earning his firm R3,200,000 p.a. but was earning half.

He figured out that the work he was doing in running the business e.g. ensuring there were sufficient resources in staff and finances and actively managing them, could be done for less.
 
Their solution was to hire a General Manager whose job it was to run the business i.e. to work in the business. This chap's pay equated to R500 p/h. This is a vast monetary difference, not to mention the distraction that comes from wearing many hats.

For most small companies, the outsourcing of payroll and bookkeeping would be less than R2,000 p.m. If you or your staff are doing this and could be better employed in money earning activities, you may have missed a trick. 

For more insights like this contact Sprout Consulting on 0861 4769 669 or info@sproutconsulting.co.za