Hey there, fellow CEO business owners!
Let’s talk about a common challenge most of us face: being spread too thin.
You know what I’m talking about, right? It’s that feeling of constantly juggling multiple tasks, working long hours, and being involved in every aspect of our businesses, from sales to delivery and even the back-office stuff. It can be overwhelming!
Now, here’s the thing: if you find yourself working 24/7 or taking business calls during your vacation, you’re stuck in what we call the “Owner’s Trap.” It’s like being trapped by a monster of our own making because our businesses are so dependent on us.
The consequences of this trap can be pretty rough. Our passion and desire for freedom may turn into pain and exhaustion. We might struggle to make payroll or pay our vendors on time, and our personal relationships outside of work may suffer. On top of that, our businesses might get stuck at a certain level despite our best efforts. It’s frustrating, isn’t it?
To make matters worse, when our meeting cadence is all over the place or nonexistent, when we have too many underperforming team members, when time management feels like an impossible task, and when we’re stuck working in the business instead of on the business, things can get even messier.
Let me share a story with you about one of the CEOs we worked with. They had a healthy $20 million in revenue, but their bottom line was almost nonexistent. Why? Well, their market was highly competitive, which led to pricing pressures similar to commodities. However, by digging deep into their customer data, we discovered that they could actually cut their workload in half, build a strong management team, and escape the owner’s trap. As a result, they were able to increase their household income to just under a million dollars per year. Impressive, right?
So, how can we escape this owner’s trap and find our way to greater success and freedom by being even more effective? Here are a few friendly suggestions:
Focus on What Matters: Encourage your teams to embrace the 80/20 principle. Use data to identify your most valuable customers and evaluate the effectiveness of your customer acquisition efforts. Regularly review your operations to eliminate non-performing areas and concentrate your resources on the ones that are bringing in results.
Build People Capacity: Determine your own strengths and focus on your best skills. Create a future organizational chart that outlines the roles and responsibilities you need to delegate in order to achieve freedom. Make sure your team members have access to the necessary information and tools to take proactive action. Document best practices in functional playbooks so that knowledge isn’t lost when key people leave. And don’t forget to address underperforming team members based on the key performance indicators (KPIs) you’ve set.
Benchmark Financial Results: It’s time to redefine what’s possible for your business. Look into your payment terms and practices and find ways to optimize cash flow, so you can easily cover your bills and improve your household income. By doing so, you’ll also maximize the overall value of your business, ensuring that you get paid twice – once through regular income and again when it’s time for succession “the second payday.” We use the same database that many banks use.
Wrapping Up
Remember, fellow CEOs and business owners, we don’t have to stay trapped in the never-ending cycle of overwork and underperformance. By focusing on what truly matters, building the right team, and reevaluating our financial strategies, we can break free from the Owner’s Trap and find success, financial freedom, and fulfillment in our businesses.
If you are ready to learn about a better way to get your business and life on a healthy flight plan, schedule a discovery call with me.
We Got Your Back!
