Allocating Vital Resources is Crucial
As a business owner, you have only so much time in the day and only so much money in the bank. So, how do you go about allocating the resources you have to get the best bang for the effort?
Let’s start with money—how do you know how to allocate it appropriately? A couple of things to keep in mind:
1. When it comes to marketing, test and measure everything you do. No sense in throwing good money after bad with marketing activities that don’t work. Test and measure to find out what really works. This is one of the most expensive ways to make more money and it may take a few tries to get one marketing method to work, so be patient and make a decision based on the actual results of your marketing.
2. Shop your services—each year (at a minimum two), you should be looking at ways to reduce insurance costs, cell phone plans and your key purchases that support your business. For the last one, pick an index to follow so that you know for certain if the price of the good you are buying is going up, down or staying the same. In other words, know as much about the pricing as the person selling it to you. Besides, which is easier, saving a dollar or trying to generate ten dollars in revenue?
For time, there are a few items to consider:
1. Default calendar—plan how you spend your time before you spend it (you do it with money via a budget, why not do it for your time?). Clump together similar activities back to back, for example, admin work, reports, data entry. This will open up time for you if you keep similar activities together. But, don’t even start your day until you plan it. This ensures you make the most of it.
2. Estimate how much time something should take and then monitor to see if you are on target. Especially when it comes to marketing, if you should be able to follow up with 15 clients an hour on the phone, then allocate one hour to do it. Don’t put in a two hour block called “marketing” - that’s not specific enough.
By being specific, you’ll be more focused, more efficient and ultimately more productive. If you are spending 80 hours a week in your business, you need to fix something (and soon).
Action Tip of the Day—Personal Improvement
What’s the most important investment you can make? Stocks, house, time with family? Those are all good—but the best investment you can make is in yourself. Jim Rohn put it best when he said “I’ll take care of me, for you, if you promise to take care of you, for me”. Sounds great but how? Here are three things you can do starting today:
1. Read—pick books that will expand your knowledge and read 10 pages a day (that’s 12 books a year).
2. Exercise—health is important so get outside and get your heart pumping at least three times a week.
3. Eat right—if the product can stay on the shelf for a year, don’t eat it.
Invest in yourself and reap the dividends for a lifetime.
Take Action on this now and then go run a lap! Business is Fun!