Jason Katzenback: Maximizing Your Efficiency Through Delegation
Building a successful business requires an overwhelming amount of tasks to be completed. Many entrepreneurs find themselves buried with day to day tasks, becoming slaves to their business, while others seem to have much more time on their hands. So, what’s the major difference? Delegation.
Smart business owners know how to delegate their “low-dollar-low-impact” tasks to someone else. This frees up their time from the menial parts of owning and operating a business, allowing them to focus on “high-value-high-impact” tasks.
It’s important to be able to go through your lists of tasks and free up time so that you are only focusing on the items that are going to move your business to the level that you want it to be at. Delegation allows you to put time wasters to the side and identify things that you need to focus on to hold yourself accountable, one of the hardest things to do as an entrepreneur.
Dollar Value to Impact Levels
The first step is to divide all tasks into categories based on dollars per hour you could potentially pay someone to complete those tasks. Organizing them into dollar value based on the amount of impact the task would have on your company. Below see sample tasks divided into $10, $100, $1,000, and $10,000 per hour.
- Data Entry
- Image Edit
- Customer Service
- Web Design
- Selling Expanding
The Impact on Your Business
When you’re first starting your business, you’re probably going to start off in the $10/hr section, depending on the amount of money, time, and resources you have. The goal is to go from the $10/hr level to the $10,000 level so that each day you are only focusing on tasks that have a high impact on your business. By doing so, you get to a level where you are doing things that only you can do. You are no longer engaging in tasks that can be outsourced.
After learning this method from a strategic coach, I went from days where I felt extremely busy, but I couldn’t tell you what I accomplished, to days where I knew exactly what impact my work had on my company and my goals.
Why is it important to avoid $10 tasks?
Some people have a lot more time than money, while others have a lot more money than time. Depending on where you are in your business and what your goal is will determine how you use this system.
Let’s say your goal is to create a $1 million per year business. If you break that down, you’re averaging $3,684 in revenue per day. This is based on a 52-week year with a 5-day work week. That’s about $460 per hour. That means you should be focusing on the $100 per hour tasks minimum throughout the day. Every time you go out of your way and focus on a $10 per hour tasks you reduce your chance of success.
If all day you’re doing $10/hr tasks, such as data entry or image editing, when you could pay someone a small amount to complete the task quickly, you’re building a business that has an effort of about $80 per day. That averages out to about $20,000 of effort per year, which is pretty bad when your goal is $1 million.
Using the System
When you start using the delegation system, it’s important to take 2 weeks to journal the tasks you do throughout the day. Every couple of hours jot down what you worked on for the last few hours. Then you’ll be able to see what you have accomplished each day.
At the end of each day categorize the tasks you completed. I use a red highlighter to show the tasks that were $10/hr tasks, a yellow highlighter to note caution, and a blue highlighter if I’m not sure if this was a problem or not. The red highlighter marks the time-wasting tasks, whether that’s spending too much time on Facebook, playing a game on your phone, or any $10/hr tasks. The yellow highlighter marks tasks that I might be able to use to create a job.
You might find you’ve been spending time doing data entry or editing videos and those tasks might turn into a 2 hour per day job. By doing that, you’ll know exactly what tasks will need to complete and how to finish those tasks. This process allows you to figure out exactly what you need assistance with before you hire someone. Delegating those tasks will allow you to reach your $1 million dollar goal.
Jason Katzenback is an entrepreneur, physical product business owner, and a philanthropist. He has established multiple multi-million dollar companies. In Katzenback co-founded Amazing.com with Matt Clark, a fellow successful physical products business owner. Amazing.com reviews how to build and grow a business online by leveraging the strength of Amazon through their program, the Amazing Selling Machine. The Amazing Selling Machine is an 8-week course taught online by successful entrepreneurs. For more information about the Amazing Selling Machine watch reviews on our Facebook page. Jason is married with two daughters. They live in Austin, Texas.