Tip to Restore Work-Life Balance for the Small Business Owner
Have you built a service-based business that’s dependent upon you, and now you feel exhausted trying to scale it? You’re not alone. This is a transition that all small business owners must conquer if they want to sustainably grow without sacrificing their physical and mental health.
Imagine Dan is an esteemed soccer trainer that meets with young athletes who want to take their game to the next level. After they work together his students always see incredible results in their gameplay, so demand is higher than ever and the business is growing.
Eventually he’s so booked that the idea of taking on even 1 more student makes him feel frustrated. He would like to grow to meet the demand but it just doesn’t seem possible because he can’t duplicate himself. He’s working long hours yet feels unsatisfied with his inability to grow this service.
Unfortunately, trying to scale by selling more and more “units of personal expertise” will burn out even the most determined business owner over time. The solution is not to quit, sell your business, and move to Bali, Indonesia (although that does sound nice this time of year). Instead, I want to share how you can scale your service-based business in a sustainable way in 3 steps.
Step 1. Evaluate your Wings
The root of your frustration can be summed up in one sentence: Your time can’t be your only product if you want to scale your company and increase your income.
If you want the effect of duplicating yourself, start by analyzing your products. When we view our business as a plane (check out last week's Curated Conversation), we see our products as the wings that help keep our business airborne. If the majority of your incoming revenue is directly based on your personal time input, it’s like trying to get a transatlantic jet off the tarmac with wings that were built for a small bush plane. You simply need bigger wings if you want to fly across the Atlantic ocean.
How do you know if your wings are big enough? Get a piece of paper or open up your word processor and write down 1) Your business’s goal destination 2) A list of all your current products/services 3) Ensure you have products that can generate revenue outside of your personal attention and time. If you don’t have any products that could make you money while you sleep, it’s time to optimize your wings.
Step 2. Optimize Your Wings
The most effective way to build bigger wings is to create and sell products that take you out of the equation.
Look back at your product list. How is each service’s value being delivered? If you want to scale your service, you need to break your processes down into phases. Whenever a phase requires more of your time and expertise it should only be offered at a premium price. This will allow you to replace your personal intervention in 1 or more parts of the process, decrease your workload, increase your company’s output, and save your customers money.
In the case of our soccer trainer Dan, he could break his training program into 2 different levels of involvement. For example, phase 1 of the training could be a larger group with breakout sessions led by less experienced staff. Phase 2 could involve a more personal, 1-on-1 training program where the lead trainer could dissect the individual player’s strengths and weaknesses for a premium charge.
For some soccer players, phase 1 might be all the training they desire and they never move on to phase 2. This can dramatically free up your workload while expanding the amount of people you are able to serve and charge for your service. If you want to decrease your company’s dependence on you it’s crucial to only sell yourself at a premium. This is made possible by utilizing new or existing staff to create touchpoints with customers that will deliver value without your involvement.
Step 3. Pack Lighter
It would be detrimental to pack all the cargo for a fleet of 9 onto 1 plane. Don’t make the same mistake in your business by delivering every piece of value yourself.
This is where a lot of business owners and entrepreneurs run into trouble. The idea of letting another employee take over phases of your business can make even the nicest boss criticize an employee’s every move. However, others don’t have to solve the problem the same way you would as long as they are still solving the problem.
I’ll say it again: You’re employees don’t have to solve the problem the same way you would as long as they are still solving the problem.
Coming to terms with this will create the trust you will need to transition from founder to leader and scale without burning yourself out. A founder is often overworked because they have been carrying too much (or all) the weight. A sustainable leader knows what to carry and what to ask for help with. The difference is a short struggle and a trans-Atlantic journey.
If you read this far, make good use of your time and apply this before you move on. You can scale your service in a sustainable and exciting way. List your products out and ask yourself the questions listed in Step 1.
The 3 Steps…
Analyze the size of your wings compared to the journey you want to take
Optimize your wings by creating products that take you out of the picture
Understand that the alterations you have made can look different but be just as effective
P.S. Ever get invoices? We have a powerful new tool that eliminates manual data entry into QuickBooks. Click here to find out more - Josh