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Yesterday we talked about the actual value of your time. If you missed it, be sure to check it out.
We talked about the actual value of your time, not the theoretical value. Today, I want to use that knowledge to talk about hiring your first employee.
What I see a lot of people getting wrong with their first hire is waiting until they can justify that hire. I did the same thing.
Right now, we have eight full-time people at seanwes, but with my first business, I only hired one person.
I thought of this person as someone who I had to justify bringing on when they were able to make enough money for me to pay their salary.
Instead, I should have seen employees as a way to free up my time. See, you’re the business owner. You’re the one who knows the areas where you can apply yourself to make the most money.
You can make the most revenue if you apply yourself to these areas, but as people who are running businesses, we tend to do too many things. We take on too much and we have trouble delegating. We’re so overwhelmed with all of the work we have that we know we need to hire someone, but we tend to see that person as an expense.
We try to justify that expense and say, “Well, is this person going to make me enough money to pay them a salary?” when really we should be seeing it as: “Is this person freeing up enough of my time to become even more profitable?”
Most likely, you’re doing things that you shouldn’t doing. You need to focus on the things that will produce the greatest results and then hire people around you to support your focus on that.
Right now, you’re probably thinking, “If I’m going to pay someone several thousand dollars, I need to have them generate several thousand dollars.” This is going to keep you stuck because right now you’re piled with work.
You have more than you can handle, but you can’t hire someone because them taking over one aspect of your job isn’t going to produce enough revenue to cover their salary. That’s why this is the wrong way to think about it, yet this is how everyone approaches hiring.
This is how people see their first hire. With my first hire, I saw it the same way—as an expense, as someone that I had to justify making the same amount as their salary.
How you need to think of it is not, “Is this person going to make enough revenue for me to pay for their salary?” but, “Is this person going to free up enough of my time so that I can apply myself in areas where I’ll generate $10,000?” Then you can pay their salary easy!
It’s a simple switch that changes everything.
Rather than seeing someone as an expense you have to justify, see them as an asset to free up your time to focus on the most important things.
Now, it does cost money to hire employees. It’s not just a magical thing that happens. You do have to make this mental switch, but you still have to pay your employees.
You still actually need money, so where do you get that money? I want to make this really practical for you here.
Number one, you need to identify the actual value of your time. What are the things you could do or should be doing that would generate the greatest amount of revenue? You need to do those things repeatedly.
You need to build up a runway, because you’re not bringing them on only when they can make enough money to pay for themselves, you’re bringing them on before they generate enough revenue to pay for themselves.
You’re bringing them on to free up your time, that’s why they’re an asset.
To do that, you need to have the cash up front. You need to have the capital to be able to hire them. The first thing you do is the thing that generates the greatest amount of results. How do you do that? You need time.
You need time to be able to do those things and that means auditing your life and your business.
If you don’t have time, then buy time.
If you don’t have money, then find money.
Look at your expenses. Where are you spending your money? Are you spending it on Netflix, extra data for your iPhone, going to the movie theater, paying for food that you don’t need, or going out to eat too much?
Get that money, then pay someone to do a task that you shouldn’t be doing to free up your time. Then, take that time and apply it to what you can do that will produce the greatest amount of results. Now repeat that. Do it over and over and over and over.
Save all of this money, build up a runway, and then hire someone preemptively, even before they can generate enough revenue to pay for their salary. They will free up your time and that time can turn into even greater revenue down the line.