What is the number one thing you are grappling with within your business?
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It's often said, control your calendar or everyone else will do it for you.
For startups this is extremely crucial. You are wearing 100 hats, many of those duties are not focused on the one thing you, as a startup, need to be focused on; making sales. It's difficult many days to get everything done to keep the momentum going. You lose the momentum, your business will die.
We've all heard the 80/20 rule, known as Pareto's Efficiency, or more commonly known as Pareto's Principle.
Vilfredo Federico Damaso Pareto (Italian pronunciation: [vilˈfreːdo paˈreːto]; 15 July 1848 – 19 August 1923), born Wilfried Fritz Pareto, was an Italian engineer, sociologist, economist, political scientist and philosopher. He made several important contributions to economics, particularly in the study of income distribution and in the analysis of individuals' choices.
He introduced the concept of Pareto efficiency and helped develop the field of microeconomics. He also was the first to discover that income follows a Pareto distribution, which is a power law probability distribution. The Pareto principle was named after him and built on observations of his such as that 80% of the land in Italy was owned by 20% of the population. He also contributed to the fields of sociology and mathematics. (Source: http://en.wikipedia.org/wiki/Vilfredo_Pareto)
Pareto's principle was essentially written to discuss income and land ownership disparity but has widely become associated with business. 80% of your business comes from 20% of your sales staff. 80% of your income comes from 20% of your customers.80% of what you focus on will generate 20% of your businesses revenue.
What a crock or horse puckey.
If we look at the current economic situation in the U.S. today with the Occupy Wall Street movement, we see that 1%, not 20% if what makes up the highest wage earners in the United States, making Pareto a liar.
If we move the Pareto Principle into startups, the number jumps to 100% and 0%.
Let me explain. Most startup founders or would be entrepreneur's are throwing mud at the wall.
Case in point; I just met with a gentleman today that works for a large Fortune 100. I had originally agreed to meet with him to discuss what seemed like a very interesting project but he did the unthinkable. He pitched me on 3 other projects as well, hoping one would catch my interest. The net result was; I saw he had no focus.
He's like most startups; they try to wear too many hats instead of finding talent to partner with them. You need cofounders with talent and skill in the areas you are weak.
He had no focus. He was a perfect example of Pareto's principle, focusing on 80% of one business (his day job) or idea and spending his other time on side projects. That never works. As a startup you need 100% focus on your current business. Not 80% or 99%....100%. Side businesses should never be on the map. Ever. You can have no distractions while you build a business. I had a recent conversation with Alex Muse at ShopSavvy.com and we both agreed on focus. Alex said, "No startup founder should have a side business."
I own 3 other businesses. However, I am not involved in the day to day operations of those businesses. I don't discuss strategies, marketing or anything else. I've found qualified talent to run those businesses. I only look at the financials once a month. Those took months and sometimes years to get those business to run efficiently so i don't have to focus on them. They also don't generate a ton of money; most less than $250,000 a year, but I didn't build them to be the next Google.They just don't get any focus from me. These businesses run themselves.
What I do focus on is my current business. It gets 100% of my focus and thus I must control my calendar.
With a full schedule every day, sometimes Saturday's and Sunday's included, I could become overwhelmed with all the meetings people try to place on my calendar. With the advent of open calendars with Gmail, it can become seriously overwhelming to meet all the demands to keep my calendar empty, with the exception of those tasks that make my day productive as a startup entrepreneur.
Here's my list of suggestions to keep your calendar managed only by you. It's what I do every day.
1. Close down your calendar on the internet. No one gets to see my calendar. No one. I set the times and dates, not an admin, not partners, attorneys, CPA's, coworkers, vendors or customers. I DO. I choose who I will meet with that day. Typically it's a prospect or customer. If you are a startup, that's my customer.
2. I do take the Pareto approach to making a full list of things I need to do tomorrow. I do this every evening. I list everything I need to do.
3. Prioritize. In the past I used to prioritize that list according to what was the biggest fire. Screaming customers. Big projects. Pissy employees. No longer. As a startup, there's only one focus. Money. That equals sales. I prioritize my calendar, in order, of those things I need to do to make money. Those come first. The rest can wait until after hours. Daylight hours are for making sales. Nothing else. The attorney can wait. The CPA can wait. My partners can wait. We constantly have meetings at 6am or 8pm. Everyone in our office knows this. Frankly they appreciate knowing that meetings are brief and very direct. No chatting about your cat or how Johnny is doing is school. We can do that on Friday at 6 when we all go out for drinks.
4. Outsource / Delegate. I then prioritize the things that must get done to keep the business running smoothly and delegate or find someone or a business to outsource things I'm weak in. Find someone in your organization that loves to do the books, return phone calls to vendors, return emails, meet with attorneys. As the CEO, I only focus on what I can do personally and outsource the rest to more competent people.
The net result is time management. We've all heard you can't manage time. I can however manage my day. I try my best to only respond to email twice a day. That's it. There's absolutely no reason to answer an email as soon as it comes in unless the building is on fire. Coming from a previous industry where clients were extremely demanding and wanted instant service, this can be difficult, but it can be done. Put out the fire and then only answer other emails later. I answer emails about mid morning and last thing before I go to bed.
Schedule time for yourself. I no longer take calls, texts or emails after hours or on weekends. Leave this for someone else. I need time to regroup, have time for my girls, be with my family and have some fun. Startups are tough and the 18 hour and sometimes 72 hour runs will take it's toll on your mental capacity and your health. You need to unwind.
There are scientific studies that show our brains are not as creative when we are tired. Find time to de-stress. Unplug from all your gadgets.
Before i leave, I want to clear up one thing. Pareto wasn't really a liar. It was merely a theory. Times have changed. You must change. Start today by taking 100% control of your own calendar.
Ask yourself, is this really worth spending my time on: with this person, with this project. Most times you'll find it's not even remotely related to growing your business. Either delete it or delegate it. You'll find yourself more productive and productivity means more sales.
Start today making your calendar 100% yours. You'll find if you focus only on the things that make the company money, you'll spend less time in front of investors and more time in front of customers....paying customers.