Building a small business requires entrepreneurs to wear many hats. Numerous books have been written about all of these roles such as The E Myth. By wearing all of these hats, the belief is that the entrepreneur will reduce costs and increase the bottom line. At the end of the year, that hard working entrepreneur is very happy when he or she reads black and not red.
Yet, even if they read black should they be happy? Why, because they probably failed to embrace this tip.
Pay yourself first
Mistake: Wearing all the hats and not paying yourself what you are worth. Entrepreneurs wear many hats when they establish their business. As time progresses, they continue to wear these hats because money is tight and they believe that they can do things better. The end of the year approaches and the company made a profit. By paying yourself first, you will focus on what you do really well and delegate those other activities to others at a far lower rate.
After providing this proactive suggestion to my clients, I usually hear the following reactions just to name a few: