Business Futurist Thomas Jones urges workshop attendees to delegate tasks they don't excel in
BUSINESS CARD IN HAND, West Linn chiropractor Bryan Scott approaches at a recent networking breakfast and seminar, "Small Business Success," at Marylhurst University.
"I love what I'm doing, with a passion," the owner of Scott Chiropractic Center says. "I don't want to retire."
His comment is fitting, given the seminar's topic: "What's love got to do with it?"
"The real disadvantage of small business is underemployment," says Thomas Jones, the business consultant teaching the packed Saturday class. "All the risk, all the work, all the worry -- for $12 an hour. Not too far removed from 'Would you like fries with that?' The challenge is not bankruptcy. It's exhaustion."
So what's the antidote to exhaustion? Jones prescribes delegating all the jobs you're not enthusiastic about and focusing on the work you find fun.
"The new business model is to only do that which you do well," Jones says.
In 25 years he's run two private practices, Harrison Jones Co. and now Thomas D. Jones Ph.D., both small business consultancies. In all he's coached 2,500 business owners, including 600 with start-ups.
He's discovered that thriving organizations share five traits. It's up to founders to decide which ones they'll master and which ones they'll hire out.
Technical skills: The skills needed to create the company's core product.
Finance: Accounting, cash-flow management and tax forms. "The IRS is a small business' best friend," Jones says in class, "because if it weren't for them, most of us wouldn't keep books."
Technology: The computers and work tools to make your business competitive. Someone needs to maintain, update and train others on the system.
Marketing: Pricing, product selection, location, promotions and market research. "It's a really simple test. If you look at your balance sheet and your profits aren't there," Jones says, "your first thoughts would be: What strategies can I take to get the market to pay a premium for our services? But if marketing is an inconvenient act, then you're a CEO, not a marketer. Don't punish yourself: Outsource it."
Leadership: "Either leadership or luck, I've seen both work," Jones says. "But leadership isn't positional, so give yourself permission to outsource."
The question isn't whether you can afford to fill roles you can't, he says. It's how you're going to make sure you make the money to be able to afford it.
Jones says he has yet to meet anyone who's really good at more than three of these traits. "You can strive to be the best, but your business is only as strong as the weakest link."
How do you know you're filling the right roles for your organization? "If you're energized when you do it," Jones answers.
His strategies are working for business owners such as Scott.
"I have fairly good technical skills," Scott says. "I'm successful where I've seen other chiropractors not be as successful in treating other problems. It's a science to diagnose, the art is the treatment. So, technical skills and office management I'm pretty comfortable with."
That's left him with finance, technology and marketing to hire out. He's found someone to do each part.
"That was another very, very good aspect of the seminar that I picked up, trying to focus on those five elements, and which of those I can outsource," Scott says. "I'd much rather spend my time researching on the computer regarding people's health problems than inputting bookkeeping numbers.
"People envision retiring to go do something they really like," he says. "But I really like this, so why do something else?"
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| Jennifer D. Meacham, Gather Money Correspondent | ||||
Jennifer's column, "The Bottom Line," is published every week to the Gather Essentials: Money channel. Jennifer also covers business/personal finance for The Oregonian newspaper and real estate news for RISMedia, and co-authored the best-selling retirement investing guide "IRA Wealth: Revolutionary IRA Strategies for Real Estate Investment" (Square One Publishers, New York). Keep up on the latest news and analysis into how you can take control of your business and personal financial future by joining Jennifer's "Self-Directed Investing 101" network. | ||||
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Comments: 23
1. Is it difficult to outsource a position if you don't know how to do it on your own?
2. Wouldn't doing the work for free, on your own time, be worth more than hiring someone for the 12 hours or so it might take them to do a job like bookkeeping or web maintenance?
Hopefully I'm on the right track here.
In answer to question No. 1, there are advantages to knowing how to do something when you outsource. First, you know if you're being taken advantage of and, second, you can determine for yourself if the job was done correctly. But the same advantages are there even if you don't know how to do the job on your own. You'll just use different metrics. First, you'll ask around to find out current rates and contract terms for the kind of job you want to outsource and, second, you'll judge the results based upon outcomes -- an increase in usage of your website, for instance, or whether your customers like and use the new changes, or whether you're balance sheet pencils out to 0.
In answer to question No. 2, it's recommended that the self-employed make no less than $30 per hour, before taxes. Your time, at $30 per hour, is worth a lot more than hiring someone -- at $10 an hour -- to do the same job. Don't look at your time as free money. As they say, time is money.
I hope this addresses both of your comments.
John, I'm so glad I addressed your issue. I wasn't sure. Your suggestion of adding a partner is indeed a good one. Just make sure that partner loves doing what you don't, and you're set (aside from actually getting along). ; ) Just like outsourcing, you'll still want to check in and make sure everything is up to par. It's your life, so no one else should be in control of that.
But seriously; my brother has a plumbing business that I do the accounting for. We have chosen to outsourse the payroll. The frees up my time for other areas of the business and is an area that I can do; but not as quickly and efficiently as a professional company.
Thank you Carol. May I use this quote for the back of my next book? ; )