| Let me give you an example of how I lost a | | | | What I did not realize then was that by doing |
| potential $4,900 a day when I first started | | | | the admin, accounts, logistics and selling |
| out in the training business by spending too | | | | myself, I was actually losing money everyday! |
| much of my time on the wrong sort of work. | | | | Why? You see, every day was worth a potential |
| | | | $5,000 if I spent it doing training. If I |
| Like every small start-up business person, I | | | | were to hire an administration assistant, I |
| was a one-man show. Naturally, I had to do | | | | would have to pay the person $2,000 a month, |
| everything myself. I had to write proposals | | | | which works out to $100 a day (assuming 20 |
| to clients, make cold calls, do sales | | | | working days a month). If I did the |
| presentations, conduct the training itself, | | | | administration work myself, I would save $100 |
| prepare logistics, prepare training | | | | a day. However, I would be losing a potential |
| materials, do administration and finally, | | | | $5,000 as I would not be able to be out |
| manage the financial accounts. | | | | training. So although I save a potential |
| | | | $100, I lose a potential $5,000, I end up |
| Now among all my activities, which one do you | | | | losing $4,900! |
| think created the most profits? The answer is | | | | |
| when I was training. Every day I trained, I | | | | The moment I realized this, I went out and |
| earned for my business $5,000 (100 students | | | | hired an assistant to take care of all my |
| multiplied by $50 per student). | | | | admin work like filing, answering calls, |
| | | | arranging logistics, coordinating with |
| However, because I had to do all the other | | | | clients and so on... This freed me of a |
| activities, I only had the time and energy to | | | | collective five days a month which I could |
| do a maximum of six training days a month, | | | | now spend doing training and earning my |
| thus the most I could gross was $30,000 a | | | | business an additional $25,000 a month. Not |
| month. | | | | bad, I invested $2,000 to earn back $25,000! |
| | | | |
| I thought of hiring people to do the | | | | The lesson is this. You must find the |
| administration, logistics and accounting but | | | | activities where you generate the highest |
| I was initially too stingy. I thought to | | | | value for your company and spend most of your |
| myself, 'If I hire an administrative | | | | time doing that! If you can, delegate the |
| assistant, I would have to pay the person | | | | rest. Remember time is money and how you |
| $2,000 a month'. 'If I do it myself, then I | | | | spend will decide how mush value and wealth |
| would save the money!' | | | | you can create. |
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