Virtual Assistant Podcast
No Task is Too Small
In this episode, I share some recent tasks that I've given Andrea, my own personal VA, to do for me. These tasks include researching details on refinancing my home mortgage, handling the details of a back-ordered item for one of my customers, and following up with existing clients to generate more consulting calls for my weekly schedule.
Also in this episode, I have the honor of speaking with Holly Kile (@hjkile on Twitter) about her experiences of being a virtual assistant. I loved the inspiration that she gave me in the area of having my virtual assistant help me create e-books for my business.
Below are the articles that I read in this episode:
Low Value Work
The truth is, if you look at your to-do list, you'll probably spot several items that are important to your business but aren't critical to be done by you right now. Let's call this low-value work. (It still needs to get done and it's still important to your business, of course, but there are more important tasks to do).
In fact, in many cases, this low-value work is the work that business owners try to do in the evenings or weekends, saving the daytime to do the serious high-value work like talking to customers.
So, here's where the math comes in: If you divide the money you make by the number of hours you work, you'll get your approximate hourly rate.
Now, if you hire someone else at a lower cost than what you're “earning” per hour, you can give them that low value work.
Now here's where it gets exciting: With that recaptured time, you can focus on the higher value work and earn even more!
Here's an example: Let's say that you determine that you earn $45/hour and you work 35 hours a week. So you earn $1575 per week.
But you realize that you spend 5 of those hours doing low-value work like data entry, customer service, and administrative tasks.
So, in reality, you're working 30 hours on high value work (the revenue-generating stuff) and 5 hours on low value work (which rarely generates revenue).
If you hire an assistant for $20/hour and give them your 5 hours per week, you'll spend $100 to get that low value work done. Do you think that saving 5 hours per week is worth $100? Most entrepreneurs would agree when they do the math!
Stay with me here while we do even more math. (Trust me, you'll love this part).
Since you earn your $1575/week in only 30 hours of high value time (remember, the other 5 hours was low-value, non-revenue generating), your effective hourly rate is actually $52.50. ($1575/30).
If you spend those extra 5 hours doing more high value work instead of the low value work, you'll generate an additional $262.50 that week ($52.50 x 5)! So, you spend $100 to give someone else the administrative stuff and you focus on your business to earn even more.
You pay for them, you make more money, and there's a good chance that you're getting rid of the annoying tasks that you don't like doing anyway.
How Do I Determine What to Delegate?
3 Strikes Method
It works like this. For every task you have, simply ask yourself the three following questions and your answers will collectively determine whether you can delegate the work or not:
Question 1: Is it something that you don't personally have to do that someone else can do or be trained to do for you?
Question 2: Does the alternate person that could do it for you have an hourly wage less than your billable wage?
Question 3: Could you use that spare time on revenue generating activities or to increase your quality of life?
If the answer is “yes” to all three questions, it should be delegated.
If the answer is “yes” to two of the questions, it might be something that you want to think about delegating and revisit in awhile.
If the answer is “yes” to none of or only one of the questions, you might want to keep it for yourself.
Special thanks to Contemporary VA for sponsoring this podcast. This is the firm I, personally, use for my own business. I would not have had the time to produce this show without it making financial sense for me to do so. Their sponsorship has made this show possible. If you get a chance, thank them in any creative way you can think of. If you desire, this is the link to their contact page.
Please call TODAY with your questions on our voicemail hotline at 859-795-4067. Or use your voice memo application on your iPhone to record feedback or questions. Simply email it to [email protected].
Know someone else who needs to hire a VA? Send them an note with a link to http://VirtualAssistantPodcast.com.