I was just chatting with a dear friend who shared with me that she really wanted to make a trip to Seattle sometime soon. It had been a dream of hers to visit there (which is quite a haul from her home in Florida) for years, but she never could seem to make it happen. I asked her if she had made a budget for the trip. She said yes, she had looked at flights and stuff. No, I said, a budget, not some loose research. What EXACTLY will it cost you to go? If you create a budget, even if the number scares you, you will know concretely what you need to make this wish come true. It becomes tangible and you can start finding ways to make the money you need. Exactly how many hours of overtime would you need to work, what bonus would you need to hit or what could you cut out for a while to save enough money to get you there? You can’t move into action with only a vague idea of what something costs.
I realized as I was talking with my friend how often we, as business owners, cross things off our wish list because we assume we can’t afford them. We can’t hire that new employee. We can’t invest in that new website. It’s too expensive. Maybe, but maybe not. Let’s see how we can make it happen!
- Get an EXACT number of what your wish list item costs.
Example: New team member salary, $35,000 a year.
- Divide it into a monthly cost.
A little scary – for sure. But $2,916.67 is more attainable than $35,000!
- What does $2,916.67 equate to in your life? What would you have to do to earn that extra amount a month? What could you cut to save that each month?
Perhaps you are paying for services you aren’t using that you can suspend or cancel to help cover the cost.
Perhaps bringing on the new employee will free up your existing team to complete more work and bring in more money.
Example: One base level new client brings in a $2,500 fee. So two new clients a month would more than cover the cost of the new team member. Could this new team member support bringing in two new clients a month? Having a person dedicated to following up with prospects and scheduling appointments will in itself increase your conversion rates and likely get you two new clients a month. But get detailed – list out how this new team member can cover the cost so you know exactly what the new hire needs to do.
- It’s not irrevocable. So what if my friend creates her vacation budget, works some extra hours and still doesn’t have the money to go to Seattle? Well, she doesn’t have to cancel; she can push back the travel date and keep working on it. Or she can use the money for something else fun. Either way, she isn’t losing anything – only gaining. What if you hire that new team member and after six months can’t afford her. Yes, it would definitely suck to have to let her go, but you can if you have to. (And, probably with minimal effort, you can introduce her to some other job opportunities so she lands OK.) But you know what, what if you do hire her and it does make a tremendous difference in your business? You won’t know until you budget it, plan it and try it.
Often the things we want in work and in life are attainable. We just get overwhelmed by the thought of them and don’t break down a budget and a plan.
What’s on your wish list?
So many entrepreneurs have “new team member” on their wish list but are afraid they can’t afford it. Before you cross it off as not-doable, let us help you create a budget and a job role to show exactly what the ROI on the new hire would be. We’ve helped hundreds of business owners plan and execute hiring a new team member that produces results! Contact us at firstname.lastname@example.org to schedule a complimentary Discovery Call.