Dan_Cardone
Losers make excuses. Winners find solutions.
Read Fastlane!
Read Unscripted!
Speedway Pass
User Power
Value/Post Ratio
360%
- Jul 23, 2019
- 331
- 1,193
So I'm actually a consultant that specializes in scaling up small businesses and improving their profitability.
(No worries, no sales pitch! I'm booked for a good while)
The E-Myth is a decent book for sure though I do believe it to be a bit overrated.
Right now your business is in what I call "Phase one."
As the only employee you don't really have a business, you have a job. If you want to scale up and have financial freedom you need to move out of Phase one as quickly as possible. This will allow you to go from working IN the business to working ON the business.
To accomplish this you will need to hire other employees.
As you hire employees you will delegate more and more work to them until the majority of your time is spent working on High Value Task. These HVTs are what "moves the needle" in your business the most and will allow you to actually be the business owner and not just another employee who must show up to work every day.
In order to hire a new employee you will need to increase your revenue. Right now I suggest you place a big focus on marketing so that you can get more clients.
Book Recommendation: One Page Marketing Plan
As soon as you start pulling in more money you should begin looking to add a new employee as soon as possible.
Whatever you want to train him to do, begin by developing an operations manual that uses Check list and flow charts. These two items, along with in person training from you, should really help get them up to speed. If they have problems and you aren't around, the check list and flow charts should be able to guide him. It helps to make this digital so this person will always have a copy on their phone.
Book Recommendation: Clock Work - Design A Business To Run Itself
You want to slowly transition away from being an employee towards being a manager.
You want to focus more and more of your time on getting clients. You are going to need clients and their money to continue scaling the business.
Hire a second employee as soon as possible and begin by delegating even more work to him.
Now you will be entering into Phase Two where you start playing the role of Manager and Owner.
Now that you have more business and money coming in, you want to be sure you are managing your business correctly on a financial front.
Book Recommendation: The Blueprint For An Extremely Successful Business
That book will teach you how to interpret financial statements along with improving your profits and cash flow. It will also introduce you to management concepts such as Key Performance Indicators and Critical Drivers.
Keep scaling and adding more employees as work permits.
Book Recommendation: No B.S. Ruthless Management of People and Profits: No Holds Barred, Kick Butt, Take-No-Prisoners Guide to Really Getting Rich
Book Recommendation: Pulling Profits Out Of A Hat
After a while you are going to want to have someone else manage employees (mostly so it will free up your time to work on HVT and also because managing employees is a shitty job). Hiring your first manger gets you into Phase Three.
Be careful who you hire as a manager, he will have a huge effect on how productive your employees are.
Now that the manger and the employees are taking care of more and more of the task you can start to transition over to being the Owner and finally doing the Owner HVT.
Note: At this point I strongly suggest you start to outsource many things as well, especially the HR function. You may even consider outsourcing the marketing to someone else as well.
What are the HVT in phase three?
Book Recommendation: Traction (the one by Gino Wickman)
Book Recommendation: Principals
Hope this helps somewhat. I'd type more but I'm short on time for now.
(No worries, no sales pitch! I'm booked for a good while)
The E-Myth is a decent book for sure though I do believe it to be a bit overrated.
Right now your business is in what I call "Phase one."
As the only employee you don't really have a business, you have a job. If you want to scale up and have financial freedom you need to move out of Phase one as quickly as possible. This will allow you to go from working IN the business to working ON the business.
To accomplish this you will need to hire other employees.
As you hire employees you will delegate more and more work to them until the majority of your time is spent working on High Value Task. These HVTs are what "moves the needle" in your business the most and will allow you to actually be the business owner and not just another employee who must show up to work every day.
In order to hire a new employee you will need to increase your revenue. Right now I suggest you place a big focus on marketing so that you can get more clients.
Book Recommendation: One Page Marketing Plan
As soon as you start pulling in more money you should begin looking to add a new employee as soon as possible.
Whatever you want to train him to do, begin by developing an operations manual that uses Check list and flow charts. These two items, along with in person training from you, should really help get them up to speed. If they have problems and you aren't around, the check list and flow charts should be able to guide him. It helps to make this digital so this person will always have a copy on their phone.
Book Recommendation: Clock Work - Design A Business To Run Itself
You want to slowly transition away from being an employee towards being a manager.
You want to focus more and more of your time on getting clients. You are going to need clients and their money to continue scaling the business.
Hire a second employee as soon as possible and begin by delegating even more work to him.
Now you will be entering into Phase Two where you start playing the role of Manager and Owner.
Now that you have more business and money coming in, you want to be sure you are managing your business correctly on a financial front.
Book Recommendation: The Blueprint For An Extremely Successful Business
That book will teach you how to interpret financial statements along with improving your profits and cash flow. It will also introduce you to management concepts such as Key Performance Indicators and Critical Drivers.
Keep scaling and adding more employees as work permits.
Book Recommendation: No B.S. Ruthless Management of People and Profits: No Holds Barred, Kick Butt, Take-No-Prisoners Guide to Really Getting Rich
Book Recommendation: Pulling Profits Out Of A Hat
After a while you are going to want to have someone else manage employees (mostly so it will free up your time to work on HVT and also because managing employees is a shitty job). Hiring your first manger gets you into Phase Three.
Be careful who you hire as a manager, he will have a huge effect on how productive your employees are.
Now that the manger and the employees are taking care of more and more of the task you can start to transition over to being the Owner and finally doing the Owner HVT.
Note: At this point I strongly suggest you start to outsource many things as well, especially the HR function. You may even consider outsourcing the marketing to someone else as well.
What are the HVT in phase three?
- Developing the vision, strategy, and goals
- Managing resources
- Shaping the company culture
- Leading/Coaching and Managing employees
- Foreseeing future risk and enhancing company sustainability
Book Recommendation: Traction (the one by Gino Wickman)
Book Recommendation: Principals
Hope this helps somewhat. I'd type more but I'm short on time for now.
Dislike ads? Remove them and support the forum:
Subscribe to Fastlane Insiders.