If you operate a Profit Business, you know that it’s a whole different animal than a Legacy Business. After all, your peers and competitors who own Legacy Businesses are in it for the big sale. At the end of the day, they’ll sell their businesses and fund their Freedom with a lump sum.
As a Profit Business owner, however, the way you approach the concept of hiring is bound to be different for you. So today we’re talking about your business and how to start thinking strategically about when time to hire to increase profit.
What’s Unique About A Profit Business?
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What’s the path to Freedom when you run a Profit Business? The key is to create an income stream that sustains your current lifestyle while providing you with a surplus. That surplus, pulled from your business profits, is what you’ll use to funnel cash into Income Generator. And, once ready, your Income Generator, will power your Freedom.
In a Profit Business specifically, it’s critical that you set up and maintain your business in such a way that its income not only takes care of your family now but feeds your future Freedom. Since you’re not in a Legacy Business, there’s no future date at which you cash out and walk away. So, as you hire your team, consciously bring in people whose contributions will accelerate your path to Freedom.
What Roles Are Best Suited To A New Hire?
In a Profit Business, you want to keep your expenses low and your profits high. And hiring the right person – while an expense unto itself – will actually increase your profits.
When you own a Profit Business, you’re likely an indispensable part of your business’ success. You’re in the trenches day after day. You’re the face of the company, the strategist who determines your business’ direction and the perpetual worker bee.
But a successful business quickly outgrows the capabilities of a single person, no matter how hard you work. And, at some point, you have to choose between doing it all yourself and taking your business to the next level.
The secret to getting past your choke point is to spend your time on the activities that generate the highest revenue for your business and those activities that align with your areas of interest. Maybe that’s sales, customer relationship building, coaching, live speaking or something else.
Those tasks that aren’t the best use of your time and talents? They’re perfect for outsourcing to a new team member. Just be sure that the tasks you’re farming out all fall within a particular area of genius. After all, it’s unlikely you’ll find an applicant who’s a whiz at accounting, contract review and fixing your temperamental copy machine. So choose a set of related tasks that the perfect hire will excel at tackling.
Get Started With Hiring
Think you’re ready to hire? Do a quick check:
- Can you specify how you expect the new hire to advance your business? Maybe this person will save you time, save you money, make you money or something else. Know what your objective is, so you can ensure that hiring someone actually meets that goal.
- Do you know exactly what you want your hire’s duties to be? If you can’t clearly state the requirements, responsibilities and success metrics for the position, you won’t know when you’ve found the right person . . . or be able to measure how that person is performing in the role.
- What type of hire do you need? Maybe an employee is exactly what your business requires. But it could be that a part-time worker, independent contractor or even an intern would suit your goals better – at least for now.
- Do you have a hiring process in place? Don’t hire based on which résumé hits your desk first. Desperation will inevitably lead to hiring regrets. We’ll talk you through the specifics of setting up an effective hiring process next month.
Community Question: For now, complete an assessment of your own roles in your Profit Business. Which daily activities create the greatest value? What tasks jump to the top of your list to outsource? Share with us in the Business Owners Only community!
image credit: Bigstock/Bigedhar
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Dr. Tony is the co-founder of MindShift.money and the best-selling author of three books on personal and business finances. Having achieved Financial Freedom at 27, Dr. Tony believes that through Financially Fit Bootcamp and Cash Flow Cure everyone can get there. He has made it his life’s mission to help others live a life where their money works for them—not the other way around.