“I just can’t afford to hire an assistant right now.” How many times have you heard other financial professionals say that? You may even say it yourself. However, those that do not hire an assistant may be tripping over dollars to pick up pennies.
Things that you’re really good at and only you can do which drive revenue to the firm, should be done by you. Things that you don't excel at, or don’t generate revenue, should be done by someone else. Your precious time is valuable, don't waste it on non-revenue generating activities.
Worth the Expense?
Some will argue that they probably think they can't afford to hire someone. Here’s a short 3-step exercise that can help determine how much you could benefit from an assistant.
1. What is your average first year revenue per client?
Take a look at your business last year. How much revenue did your company bring in from new clients? Divide that figure by the number of new clients last year to calculate your average revenue per client.
2. How many hours do you spend with prospects?
Calculate the amount of hours you spend working directly with a prospect before they become a client. Include the time you spend face-to-face or designing their strategy, but don't count time spent on paperwork, following up on new business, or other tasks that don't involve your unique skills.
3. Divide Step 1 by Step 2
Take the amount of revenue from Step 1 and divide it by the hours spent on things only you can accomplish. This is what your time is really worth by the hour.
Do the Math
Let's create a hypothetical example. If your average first-year revenue from a new client is $6,000 and you spend a total of 8 hours over the course of meeting, planning, and implementing a financial strategy for them, you made $750 per hour.
Would you pay someone $750 an hour to organize and file your documents?
How about $750 per hour to schedule your visits with clients?
Are you beginning to see the picture? Your time is valuable. Consider hiring someone you can maximize your time only working on revenue-generating activities.
Consider Lost Opportunities
How many more clients could you work with if you had 10 extra hours a week? How about 40 hours a month? If you divide the 40 hours by the 8 hours from the example above, that equals 5 new clients. If those 5 new clients also averaged out to $6,000 of revenue each, that could add up to an additional $30,000 in revenue. If you hired an assistant at $13-$20 per hour, you're looking at an expense of only $2,080-$3,200 per month compared to the $30,000 of potential revenue each month.
Spend More Time on What's Important
Jim Rohn said, “Don’t waste it on minor things. It’s called major time, and minor time. Minor time is making lists of prospects. Minor time is thinking about the prospect. Minor time is driving to see the prospect. Minor time is driving back to the office after visiting the prospect. Major time is in the presence of the prospect.”
I’d also add that minor time is spent on scheduling visits with prospects, sending correspondence to prospects, organizing prospecting events, as well as hundreds if not thousands of other tasks that need to be done in order to run a successful practice.
If you wouldn’t pay someone $750 an hour (or however much you determine your time to be worth) don't do it. Instead, outsource it! Don’t spend your most precious resource, your time, on minor things. Don't allow yourself to be one of your business’ greatest expenses, and instead focus your energy on the major things. Delegate to people or technology. You may need to fire yourself and hire an assistant!
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