Some notes on efficiency…
As small business owners, my husband and I are always talking about new opportunities we might have in order to increase the efficiency of our business.
The “human” factor in our business is probably the one we most frequently discuss.
Can the business afford to hire another person?
Sure.
Will it really increase our efficiency to do so?
Time and time again, we settle with “Probably not.”
Why is this?
We know we work hard. We know what we are capable of. We know what we are willing to do.
We also know the same things about the employees we have had to date.
And we seem to always conclude it would probably take two to three employees to be willing and able to cover my husband’s work load. And probably 1.5 for mine.
What does this mean?
Well, there are two ways to look at this problem:
1. Daily activities of the business: From this perspective, we are most likely correct in our assumption that adding a spot on the payroll will not help us achieve the operating efficiency we are looking for.
2. Long-term growth potential of the business: From this perspective, we realize that the more time and energy the two of us spend focusing on daily operations, the less time we are spending making “big picture” decisions which, from a growth and wealth standpoint, truly affect our profitability.
It comes down to this:
Do we want to operate more efficiently at the $8/hour level, or the $20/hour level?
With that question, perhaps our “Probably not,” will be changing to a “Probably so.”

As small business owners, my husband and I are always talking about new opportunities we might have in order to increase the efficiency of our business.

The “human” factor in our business is probably the one we most frequently discuss.

Can the business afford to hire another person?

Sure.

Will it really increase our efficiency to do so?

Time and time again, we settle with “Probably not.”

Why is this?

We know we work hard. We know what we are capable of. We know what we are willing to do.

We also know the same things about the employees we have had to date.

And we seem to always conclude it would probably take two to three employees to be willing and able to cover my husband’s work load. And probably 1.5 for mine.

What does this mean?

Well, there are two ways to look at this problem:

  1. Daily activities of the business: From this perspective, we are most likely correct in our assumption that adding a spot on the payroll will not help us achieve the operating efficiency we are looking for.
  2. Long-term growth potential of the business: From this perspective, we realize that the more time and energy the two of us spend focusing on daily operations, the less time we are spending making “big picture” decisions which, from a growth and wealth standpoint, truly affect our profitability.

It comes down to this:

Do we want to operate more efficiently at the $8/hour level, or the $20/hour level?

With that question, perhaps our “Probably not,” will be changing to a “Probably so.”