Return on Investment (ROI) is an important part of a business owner’s success or failure. In this particular case I am addressing the issue of time.
Time should be broken down into two sections:
- Time dedicated to making a profit in the business
- Time dedicated to giving back to the community
Time has to be scheduled. The “giving back time” should be the time left over after making the desired profit in a business. This time usually does not result in money flowing into a business; it is time given to help others. There is a caveat with this: some business owners run away from reality and devote too much time in trying to help others. It becomes an escape mechanism from their own inability to face the reality of having to make things happen in their own business world.
The most important time is the time used to earn money, to make a profit. How that time is used is critical to achieving profitability and sustainability. Let me share an example of poor time management in the earning portion. Networking has become an overused and often misunderstood work. If you join a networking group and the members are not in a position to introduce you to your target market, quit. Hanging on and hoping that things will change is a time waster. It doesn’t matter how nice the group is, how honest and hardworking the members are. If they can’t give you or make a personal introduction to a real potential client, leave.
Another profit time killer is meetings, meetings in which plans are made and much discussion is held on how to best approach income generation without any profitable results in a reasonable amount of time. Forming strategic alliances is part of growing a business, but only if there is a mutual benefit to all participants. Again, strategic alliances should have a deadline for producing results. Leaving an open ended relationship with hope of future benefits is another escape mechanism.
The key message is to use your time doing something that can make income for your business in a reasonable period of time. By reasonable, I don’t mean weeks or months unless you have the reserves needed to sustain you and your company. Most business owners have a cash flow problem, and that requires immediate action, not future dreams.
Be ready to be “pushed” and “held accountable”; profitability will result………
Nick J. Petra CFP Call