Let’s talk about service based businesses. Generally very easy to start but very hard to scale because of the time, of the capacity limitations.
There’s only say, 24 hours in a day, (it is inhumanly possible to work that much) but you can only work 24 hours in a day times by say an hourly rate; you cannot physically do any more work than that. So once you’re at full capacity whether that’s 24 hours in a day or 12 hours in a day or whatever the number is for you, once you reach that capacity, you are now maxed out. So the only way to go from there is to play with your pricing and packaging or to increase your capacity.
Now, there’s a famous term called Superhero Syndrome that was coined by Chris Ducker who’s the owner of Virtual Staff Finder and also the author of Virtual Freedom. And he uses the term ‘Superhero Syndrome’ in the fact that entrepreneurs and small business owners try to do everything themselves. It’s a category we all fall into and when I first started in business, it was something I fell into myself and we say things like, “I can do it” “I can do it really well” “It’s going to take me this long to show someone else to do it,” “In the time I show someone else to do it, I could have done it myself” All these sorts of things. But you’ll find in business, businesses comes down to a lot of repetition, and repetition can be systematized. A system can be learnt by anyone. So yes, it may take longer the first time or the first two times to show someone else how to do it, but after that, they can do it themselves and you don’t have to worry about it.
Let’s look at the example of a mechanic. When you take your car to the mechanic to get serviced, what do they do? Well, there’s some time involved in them using their expertise to look over the car and perform a few tasks, like change the oil and the filters. But think about this: the mechanic doesn’t make the oil. The mechanic doesn’t make the filters. So the mechanic is now using the supplier to supply parts. You might need something like your brakes machined. If they are not equipped, their are mobile brake machinists that actually come to mechanics and all they do is machine the brakes. So they might machine the brakes for $100 and then the mechanic can mark it up and he might charge the client $200.
So they’re getting something done here where it might not be wise for them to do it internally. If they are to do it internally, it’s now going to take them time. But to save that time, let’s say, it takes an hour, to save an our per car, they can now get someone else to do it and they’re making a $100 on that job and they don’t even have to do it. So I want you to start thinking of areas in your business where you can outsource it, either to a team that you build yourself, whether it’s outsourced to someone else in your team in the office, outsourced to maybe someone else within Australia or even overseas, someone you can train up that can learn your system and learn your business, or they may also be supplier out there that may do bulk supply of a certain service.
These things like outsourced call centers. There’s outsourced content produces, outsourced graphic designers, blog writers, people to set up your websites and businesses to setup landing pages and conversion tools. There’s a wide range of different things. Accounting is one thing you outsource.
So I want to look at areas of repetition in your business that can be systematised. The most successful businesses, look at McDonalds, everything is systemised to how to run that business. So look at areas where you can outsource or systematise and create some quick, easy capacity that can free up time for you to do more high value work, maybe take a holiday, maybe spend some time with the family, wherever you’d like to spend it.