Are You Paying Yourself Enough?

In this episode, Robert talks about giving yourself a raise in your business, regardless of what stage your business is in. The focus today is on what you spend your time working on, and what you don’t. In surveys, Robert found that his clients spend less than 40% of their time doing revenue-generating activities.

What are revenue-generating activities? These are things like sales, marketing, and conversations with prospects, to name a few. These are not to be confused with administrative activities – typically “easy, fun, repetitive, or brainless” in nature. To distinguish between revenue-generating and administrative activities, Robert asks himself, “is what I’m doing now going to directly increase revenue in the short or long term?”

Robert reminds us that if we focus on the wrong things, we shouldn’t be surprised by the fact that we don’t get what we want. We also learn how we can deal with the issue of delegating and outsourcing – these are often difficult for entrepreneurs to do.

Robert also tells us that there’s a dollar amount attached to our own labor, and he gives us the formula to calculate whether or not it would be cheaper to outsource a task rather than do it ourselves.

Highlights:

“In business, and in life, what you focus on is what you get. If you’re focused on the wrong things, you won’t get what you want.”“Most entrepreneurs spend too much time on activities that aren’t revenue-generating.”“If someone else can do it, and they can do it maybe 80% as good as I can, then I should dump it. Don’t let perfection be the enemy of your progress. No one’s ever going to do things exactly as you do them.”“Money is better than ego, so let go of it.”“When you feel yourself getting off track, think about the money you’re losing by not spending your time in the right places.”