Learn When To Delegate in Small Business

Delegation in small business can be hard to do. Especially when you’re a one person operation. You have numerous tasks that pull you in multiple directions. It often feels like it is you against the world yet for many sole proprietors, delegation doesn’t come easily. We often believe it’s safer, easier or less expensive to just do it ourselves.

But there is a downside in trying to do it all. In economics there is the concept of opportunity cost. The intention behind opportunity cost is to reinforce thoughtful decisions during times of scarce resources and encourage people to evaluate all of their alternatives. Opportunity cost is defined as the “loss of potential gain from other alternatives when one alternative is chosen”. In the circumstance of a self-employed small business owner it is nearly impossible to keep up with all the demands of your job. If you find you are trying to tackle too much or running out of time to get everything done, start to think of the opportunity cost. You may find more benefits from delegation than you previously imagined. Remember, it’s ok to utilize the resources and expertise of others on occasion.

 Why delegate?

Give yourself permission to outsource or delegate certain activities. An immediate upside is having more time to focus on strategic initiatives for your business. Although this engagement may require you to compensate someone else for their time, look at the benefits. Now you can use your time for business building opportunities that yield even bigger returns for your business.

The best way to figure out what to delegate is to identify activities that monopolize your time and can be done more efficiently and effectively by another expert.  For example, hiring a book keeper to do your finances is a great start in delegation. Given their expertise they can often do the work in a fraction of the time and with fewer mistakes.

You can see examples of delegation in the cosmetology profession. Many hairdressers will utilize an assistant who can shampoo their clients’ hair or watch them under the dryer. This extra set of hands allows the stylist to focus their energy on activities that have the best financial returns such as haircuts and color and also take care of multiple clients at one time which means more revenue.

You can also delegate to technology as a way to ensure that certain work functions are done consistently and most efficiently every time. Automate activities such as appointment scheduling or call confirmations with clients. Technology can be like having a digital personal assistant. Technology can provide the assistance without needing to manage an actual employee.

Maximize and achieve more.

Small business owners who are successful at delegation have more time to focus on aspects of their business that will allow them to catapult to the next level. Solo professionals should evaluate if there are key activities that they can delegate or outsource so their time can be better spent on strategic goals and their resources can be applied in more productive and meaningful ways. Additionally look for alternatives where your energy focused elsewhere can bring even larger financial returns. Remember by not delegating at key times you are placing an unnecessary burden on yourself. Delegation can offer many benefits to a small business professional and any alternatives that can make you more productive should be explored. The opportunities afforded by delegation outweigh any perceived disadvantages.

GoNotes is committed to helping independent, self-employed professionals grow and thrive by providing easy- to- use, affordable tools and support needed to succeed in today’s workforce.

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