In today’s issue, I am going to share a delegation framework that helps you maximize every hour you spend working on your business.
If you follow this process every 3-6 months, I can almost guarantee that’ll be earning more and doing more fulfilling work.
Unfortunately, most early-stage business owners try to do too much so they don’t spend enough time doing work that grows their business.
Effective CEOs know how to delegate.
If you don’t have a system for freeing up your time, you likely:
•Do low-level work
•Have unaccountable staff
•Juggle incomplete projects
•Feel burnout
You can overcome these issues if you spend more doing high-value work and less time doing low-value work.
Here’s my 4-step process:
Step 1: Find your effective hourly rate (EHR)
Your effective hourly rate is what you get paid for every hour of work you do.
To calculate it, divide what you pay yourself by the total number of hours you work.
Example:
You make $10k a month & you work 40 hrs/wk (160 hrs a month).
$10,000 / 160 = $62.50
Your effective hourly rate is $62.50.
Most biz owners are rightfully obsessed with profit, but how much you work matters just as much.
I’ve seen gym owners with effective hourly rates > $1,000 & I’ve seen CEO of fast-growing SaaS companies make less than minimum wage.
An EHR over $100 is good.
Step 2: Do a time audit & identify low-value tasks
Now that you know your EHR, here’s how you raise it.
Take out a sheet of paper & draw 3 columns.
In column 1, list everything you do each week.
In column 2, write how many hours you spend doing it.
In column 3, write how much you’d have to pay someone as good or better than you to do it.
Circle every task that can be delegated for less than your effective hourly rate.
These are low-value tasks. They should be delegated so you can spend more time on higher-value work.
Step: 3 Delegate & reinvest your time
To delegate your low-value tasks:
- Write out a job description for each task
- Film yourself doing the task
- Choose a contractor or existing staff member to replace you
- Film the training process (you may need to rehire)
- Repeat until there are no tasks left below your EHR
This process will temporarily create MORE work, but the effort will be worth it.
Once you’ve successfully removed that work from your plate, you can:
- Reinvest into high-value tasks
- Reinvest into projects that have high growth potential
- Work less
It all depends on your personal goals, but any of these activities should increase your effective hourly rate.
Step 4: Repeat the process every 6 months
Your business is constantly changing. Often we’ll add in new meetings, projects, and busy work without thinking.
Doing an honest time audit 2-4 times a year ensures low-value work doesn’t creep back into your routine.
Conversely, if your EHR increased, you’ll need to delegate more tasks.
But remember, it’s your business. You make the rules.
If you love doing certain tasks, don’t delegate them.
I hope this process helps you earn more and work less. If you enjoyed it, forward it to a friend.
Until next week,
John
