Knowing how to spend time is a skill more valuable than knowing how to make, manage, invest, and spend money
Published by ActionCOACH Philippines
How would you define “living the best life”? Is it when you make millions of profits from working day and night in your business? Is it when you have quality time to spend with your family and friends? Experts say, those who have the time to pursue their passions and dreams experience what life truly has to offer.
In other words, knowing how to spend time is a skill more valuable than knowing how to make, manage, invest, and spend money. Entrepreneurs who want to be truly successful have to devote themselves not only to the accumulation of financial assets, but also to the mastery of their precious and irreplaceable time.
So, how exactly could you work lesser hours and still make more profit? The following steps could make it possible for you to work at least 10 fewer hours per week without sacrificing productivity or profits.
4 Ways to Work Less and Make More
1. To Gain Extra Hours, Fire Extraneous Customers
The first rule of any time management system is to make the most out of the time you are allotted. This brings us to the rather controversial step: eliminating customers who are a waste of time and energy. You need to either get rid of them or transform them into paying customers.
“Getting rid of extraneous customers” could involve deleting dead-end leads from the client database or sending selected clients down the road to a more appropriate business that matches their price demands. But most of the time, it means that the business has to re-examine its own internal products and services to identify and eliminate those magnets attracting unwanted customers.
For example, companies frequently offer too many discounts, freebies, or products that are not related to the core business model. Instead, concentrate on the services and products that produce profits, and jettison the dead weight of products and services that don’t contribute their share to the bottom line.
2. Double the Conversion Rates of Transactions
Money is a fabulous timesaver. Those who know how to make money more efficiently can leverage it in a way that lets you enjoy all that life has to offer. The key to increasing profits is to convert unprofitable interactions into profitable ones.
To prepare for a profit-boosting initiative, start by gathering accounting and sales data. Next, launch a marketing and advertising push in order to generate new customer leads, to encourage existing customers to buy more, and to promote the most profitable products or services in the inventory.
Find the right merchandise, and the customers will come. Build the best resort, and it will be booked a year in advance. This is not the only tactic to make money, though - another way to view the marketplace of opportunity is to reverse the point of view. Instead of looking for the ideal items to buy, invest in purchasing the loyalty of the perfect customer.
Once an expanding customer base is established, use incentives such as superior customer service, in-house financing, exclusive product lines, and preferential customer perks to inspire clients to double their number of monthly transactions. Up-sell customers to premium products. Cross-sell them to accessories or add-on features.
Any business can cut its hours of operation by 10 hours a week without sacrificing productivity or compromising profits, as long as it increases its conversion rate by just 25 percent. Do it by attracting more customers, by making an extra quarter of profit margin on each dollar in sales, or by lowering overhead by 25 percent. There are numerous ways to gain that extra 25 percent – and to free up an extra 10 hours per week by focusing on profits.
3. Run Businesses on Auto-Pilot
By working smarter – not harder – through organized systems, cutting edge technology, innovative advertising, and dynamic employee training, you can prepare to put your business into the hands of capable others – which is the next step toward personal freedom. If somebody else is running the store – without any loss of productivity – it is possible for the owner to literally play golf all day and sleep without phone call interruptions all night and still make the same amount of income.
Legendary business leaders like Henry Ford made money by systemizing production. Bill Gates became the richest man in America not by making computer software, but by inventing a system for selling software around the world without having to be physically involved in each of the transactions.
Captains of 747 jetliners put the aircraft in motion and then switch to auto-pilot. This allows them to take a nap or do crossword puzzles while the plane safely flies all by itself. Superior business systems allow entrepreneurs to do the same thing with their companies.
4. Activate the Passive Mode of Making Money
Most people live a paycheck-to-paycheck existence, using this month’s income to pay off last month’s bills. Even people who have six-figure incomes still frequently follow this model of household economics.
Real success and wealth are only realized by those whose money works for them to generate passive income. When investments and businesses are generating positive cash flow and net profits, they add to one’s bank account constantly and continually. An entrepreneur with passive income makes money without even getting out of bed and is rewarded with riches even while asleep.
In order to take a fast track to wealth, people need to focus first and foremost on passive income. The key to early retirement or rapid wealth is to build passive income throughout life, rather than trying to simply accumulate a portfolio of assets.
To be truly rich, one needs passive income, solid material assets, and paper assets such as royalties, franchise fees, and shares in profitable businesses. All of these things start with strategies that generate passive profits.
Time and Money with More of Both to Spare
Living the best life becomes a full time occupation, thanks to the fact that it is possible to easily work 10 fewer hours each week without giving up productivity or income. If you repeat the formula, you’ll reap 20 free hours a week. Double that, and soon the nine-to-five schedule of most workers becomes transformed into 40 liberated hours of free time each week.
Following the four steps outlined above enables one to quickly reach full-time retirement with plenty of money for a pleasurable and rewarding lifestyle spent with family and friends.
ActionCOACH is the world’s largest business coaching firm, helping over 18,000 business owners create more profitable businesses in over 80 countries. In the Philippines, ActionCOACH is partnered with Francorp Philippines in its continued pursuit of Growing Brands from One to Many. Get a Free Business Health Check today to see if Business Coaching is right for you.