Why Trading your Time for Money is a Bad idea
Time is a precious resource, and one of the few we have which is truly finite. Yet many of us trade it in vast chunks for a meager annual salary.
Most of us are brought up to believe that you give your time to earn money. The more hours you can work, the more you make – right?
Wrong. Successful people know that ‘time-equals-money’ is a myth. They figure out ways to automate their earnings. So whilst they’re on holiday, travelling, at leisure and asleep, money is being made on their behalf.
Product vs Service
If you’re starting a business, it’s a good idea to make it a product-based business. Why? Because products can easily be sold while you’re elsewhere.
Sourcing top-selling products means putting in a lot of work at the beginning. You’ll need to spend time sourcing a saleable product, perfecting it, marketing it and figuring out how best to sell it to customers. This means a lot of time and effort. Far more effort, usually, than the average 9-5 job. But once the product has been developed and the market sales tested, a money-maker is ready to fly.
From this point onwards, the general sales and delivery of the product can be inexpensively handed over to other people. Aside from a few tweaks and decisions here and there, the product makes its own money.
Adding Value to a Product
You don’t have to create a brand-new product. Instead, you can add value to existing products by bundling them together with other items. For example, around Christmas time I like to take small pet items like treats and toys, and bundle them together in a Christmas stocking. I then sell all these products together as a seasonal treat for pets. Note that I haven’t invented anything new – I’ve just taken existing products and put them together in a way that adds value for the customer.
Running a Service like a Product
If you’re already running a service-based business, it is possible to run it a little like a product. Service-based businesses are somewhat limited by the hours in the day. However, you can get around this by using a business model that views staff like products. This means developing a template for how your service will be delivered, so you can train staff to give exactly the same service every time.
In this model, your staff act like your products. They have different needs, of course, and generally require greater looking after. But they will also surprise you and add value in ways you didn’t imagine.
Profits are the Result of Efficiency
Whether you’re providing a service or selling a product, remember that profits come from efficiency. This means establishing that a good system, which delivers the same results to a customer over and over again, is vital for making money. You may not have enough hours in the day to get super-rich. But careful delegation, to either systems or people, will turbo-charge your earning hours.