This is probably one of those questions that are similar to "Which color Ferrari do I buy?", as I haven't started a business yet, but I'm listening to the "E-Myth Revisited" audiobook and the author says how you should stop working IN your business as fast as you can.
The first step, obviously, is to get your first employee. And I know that you hire somebody when the work you do yourself is overwhelming OR the low value-creating activities (eg. book-keeping) eat the time you could be spending on things that are actually important (eg. focusing on how you could get more customers etc).
But what if the work is already overwhelming (eg. you need to work 14 hrs/day to even to stay afloat, though that's a very grim scenario and I don't know if it actually happens, enlighten me master?) and you make say $1.5k/mo, and let's assume that's barely enough for you to stay afloat. Now what?
Say I have a problem with cleaning in my building, do I just starve a bit in the next month to pay $100 for a cleaning company, hoping that if I use the time normally spent cleaning on the more important things instead I will be able to make that $1.6k/mo, then go back to my initial profits by hiring a bookkeeper for $100/mo (I don't know how much does bookkeeping cost :S) thus earning even more time, and using that time I just grind for a few months where I get say $3k/mo (is such a drastic increase in profit even possible, though?) then get back to $1.5k/mo profit by hiring a $1.5k/mo employee, thus distancing yourself from the working IN your business and moving closer towards the passive income.
I basically removed the posibility of having some savings in this scenario, which would take away the starving element, and that money also allows for hiring somebody (but that's more risky).
So, what do you think about my perspective on that? What would you do? Do you have any criticism for me?
The first step, obviously, is to get your first employee. And I know that you hire somebody when the work you do yourself is overwhelming OR the low value-creating activities (eg. book-keeping) eat the time you could be spending on things that are actually important (eg. focusing on how you could get more customers etc).
But what if the work is already overwhelming (eg. you need to work 14 hrs/day to even to stay afloat, though that's a very grim scenario and I don't know if it actually happens, enlighten me master?) and you make say $1.5k/mo, and let's assume that's barely enough for you to stay afloat. Now what?
Say I have a problem with cleaning in my building, do I just starve a bit in the next month to pay $100 for a cleaning company, hoping that if I use the time normally spent cleaning on the more important things instead I will be able to make that $1.6k/mo, then go back to my initial profits by hiring a bookkeeper for $100/mo (I don't know how much does bookkeeping cost :S) thus earning even more time, and using that time I just grind for a few months where I get say $3k/mo (is such a drastic increase in profit even possible, though?) then get back to $1.5k/mo profit by hiring a $1.5k/mo employee, thus distancing yourself from the working IN your business and moving closer towards the passive income.
I basically removed the posibility of having some savings in this scenario, which would take away the starving element, and that money also allows for hiring somebody (but that's more risky).
So, what do you think about my perspective on that? What would you do? Do you have any criticism for me?
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