Blog: Minimizing Financial Clutter
Get a S.Y.S.T.E.M.
My husband recently started a consulting business. Very recently. So his company is not exactly bursting at the seams with revenue-producing clients just yet.
But he has hired a bookkeeper. Why would he incur such an expense at this time, when his revenue is pretty small? He knows how to use QuickBooks. He certainly has the time to do his own bookkeeping right now.
Or does he?
I just returned from a National Association of Professional Organizers (www.napo.net) conference in Washington, DC. One of the speakers, Franne McNeal, who calls herself "The Profits Coach", talked to us about her "10 Steps to More Profitability". Step #8, "Pay others to assist you in running your business", was right on point. Profitable businesses engage employees, contractors, vendors and other business professionals whenever they can, so that their key employees can spend their time on doing, well, business! Somebody needs to be out there growing the business – or before long there won't be one!
Even though my husband has the time and the skills to do his own bookkeeping, it is not the best use of his time to do so. He needs spend his time building his business by increasing his revenue, not by pinching pennies. Yes, hiring a bookkeeper at this stage of the game is "expensive" in terms of cash flow. But the bigger expense would be the opportunity cost of using his time doing things like bookkeeping instead of getting clients.
Working efficiently means "doing things right". Working effectively means "doing the right things". Doing the "wrong things right" doesn't make much sense. Sometimes it makes sense to use other resources to accomplish certain tasks to free you to focus on more important tasks and operate at a higher level of effectiveness. The combination of using your own talents and abilities effectively plus using other people's talents and abilities efficiently gives you a powerful system for profitability.
What is your system for more profitability? Franne McNeal says that your S.Y.S.T.E.M. should:
Your expenses aren't really expensive when they free your time and energy to focus on what matters most.
posted on: 3/2/2008 11:30:00 AM by Katherine Trezise
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Minimizing Financial Clutter
by Katherine Trezise
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Katherine Trezise is president of Absolutely Organized, based in Baltimore, MD. She is president-elect of the National Study Group on Chronic Disorganization. Katherine holds a masters degree in business administration, is a Certified Professional Organizer® and a Certified Professional Organizer in Chronic Disorganization®. Absolutely Organized specializes in helping people organize their homes, paperwork and financial records to make room in their lives for the things, people and activities that are most important to them.