Recently we decided to have our back patio redone. We wanted to rip out the old, rotten wooden deck and lay down a nice stone patio we could enjoy.
The crew was scheduled to start construction in a couple of weeks. In the meantime, we had a pergola we were going to keep that needed to be repainted. We decided to paint it before the new patio was put in (nothing worse than dripping paint on new stone).
Bit by bit I slowly painted the pergola, doing small sections each day. At around the halfway point, I looked at the weather forecast for the next handful of days.
If I was going to finish the pergola, I had to do it immediately.
Ultimately I got it done. The first half took me a week, and the last half took a handful of hours. But why?
It can be boiled down to Parkinson's Law.
C. Northcote Parkinson theorized that our demand for a resource increases to meet the supply of it. That is why when we are given two weeks to do a project it takes two weeks, and when we are given eight weeks to do the same project it takes eight weeks.
That is also why when given $1,000 to complete our work we get it done with $1,000 and when given $10,000 to complete the same work, it takes $10,000.
If you're like most business owners, you feel like your expenses are too high.
Our gut reaction is to increase sales and revenue. But more cash doesn't solve the problem.
I teach my clients to make Parkinson’s Law an asset. By taking your profit first, the money available for expenses lessens, and we are forced to find ways to get the same things done for less money.
Instead of making financial decisions based on the revenue, allocate a percentage to the operating expenses and run your business on that number. This will help you accomplish more in your company without sacrificing your own paycheck.
As a Profit First Coach, I help business owners, like you, make more money. Click here to book a free coaching session and we'll set up a plan to help you do the same.
Most business owners struggle with managing their money, resulting in small paychecks for themselves. At Craig Dacy Financial Coaching, we help make managing your money simple. That way you can pay yourself what you want, when you want it.