Run Your Business Like One, Not Like a Job
After a hectic but efficient tax season, I’m finally back here to write more about tax, real estate, and business concepts. We will have a few changes will come to this blog this year, including more images as well as much more video content, so stay tuned!
With that out of the way, let’s talk about some things that I think every business owner is guilty of to some degree. Let’s call these “the business sins.”
Sin #1 - Taking on too much (or all) of the administrative work
My first business coach always told us something very powerful, “If you don’t have an assistant, then guess what? You’re the assistant.” In truth, very few business owners I know disagree with this concept. Whenever I bring this up, they usually grumble about how it'd be nice to get some help, but you see, their business is so unique and it’s really hard to find help in <insert industry type here> that there’s no possible way they can do it. Or they don’t have the time because they’re too busy, or some other silly excuse.
All of these excuses are examples of short term thinking, something we abhor here at Advise RE. Time wasted doing tasks that could be delegated out literally means you’re making an investment decision to spend pennies so that you can forego earning dollars. Just like stocks, bonds, and real estate are investments, so are people and processes. Quite honestly, the return on delegation pays out usually between 10-20X, far better than the 5-8% you will achieve in the market.
Delegation doesn’t necessarily mean hiring a full-time personal administrative assistant. It could be as simple as utilizing specialized services, enlisting capable individuals, or leveraging technology. For instance, unless you're keen on mastering the Internal Revenue Code or delving deep into accounting principles, consider outsourcing these functions to experts—like us at Advise RE.
Sin #2 - Hiring Unqualified, Lower Cost Labor and Expecting Them to Train Them to Perform At Your Level
This particular sin makes my blood boil the most actually. The logic goes something like this: avoid the initial expense of seasoned professionals by bringing in minimum-wage workers, then invest a bit of time in training to mold them into the vision of perfection. This mindset is flawed, rooted in an overconfidence (arrogance, really) that one's training can transform raw, untested talent into gold. It’s an attractive concept that undervalues the complexity and skill involved in truly transformative roles and overestimates the allure of working hard for less pay out of sheer loyalty or the chance to be part of something bigger.
Then they act surprised when these hires wash out and quit (usually with no notice) and then lament the lesson they learned from hiring is that nobody can be trusted or relied upon. The real takeaway? It’s not about a lack of trust or commitment from employees, but rather about the unrealistic expectations set by the business owner.
Forego the temptation to economize on talent—cheap in the short term often comes at a high price. Instead, invest in qualified individuals whose skills and experience align with your business’s needs. Remember, successful training can enhance capability, but it can’t compensate for a foundation of expertise. Prioritize hiring people who bring not only the right skills but also the right potential for growth. This isn’t an expense; it’s an actual investment in your company’s future grow and scale up to the next level.
Sin #3 - Focusing Too Much on Mitigating Liability
I’m starting to sound like a broken record here, but I am still astounded to this day at how terrified people are of being sued. I’ll make this very easy to understand: If you just started your own company to develop an app and you’re the only one on the team, please don’t bother creating an LLC and save the filing fees. Nobody is coming to sue you, trust me on this.
I’ve also seen horrible legal structures prescribed by attorneys which are insanely complicated and seem to mitigate all sorts of remote to nearly impossible risk at such huge costs. What a waste of time and energy (and money). Use all of those resources to just build your business please.
Sin #4 - Your Success in One Area Means You Are Right About Everything
Lastly, success in one arena does not equate to infallibility across the board. The best leaders are those who attribute their success to their team and a bit of luck—these are the leaders who inspire. However, I’ve seen more than enough folks, who having succeeded in one domain, think they are the best at everything. True wisdom in leadership comes from recognizing that each success is a stepping stone and that there’s always more to learn. Keep the ego in check and lead with humility.
Conclusion
I guess I can sum it up in two words: Do better. No matter how good you think you have it, there’s always room to improve, grow, and make yourself the business leader you want to be. We love talking through business strategies here, so feel free to reach out to us with any of your thoughts!
