10X Your Goal Setting: Outsourcing & IGV
We've got £10 tasks, £100 tasks and a £1,000 tasks.
When you first start in business you'll be doing all of these, but when you start to outsource, you need to be looking at getting rid of the £10 tasks first, then the £100 tasks and then perhaps eventually the £1,000 tasks.
But most of your time is then going to be spent up on the £1,000 tasks, the higher income generating tasks.
But like we said before about the bookkeeping, if you want to outsource bookkeeping or we want outsource something on your to-do list, then it's important to know how much you would have to pay for someone to do that work for you and equally what income you could generate, what's your income generating value?
What's your income generating value (IGV)?
You should know this.
So for example there was a guy in a mastermind, I was presenting at a business coaching mastermind and we were talking about one of the guys there's got a contracting business and he was asking whether he should still go after these smaller jobs and saying that he wasn’t sure if it's worth his time anymore. I suggested we look at the job that we had just talked about, he had generated £28,000 worth of sales.
Next we need to look at how long did he spend doing that? How long did it take him to generate those sales? He had probably spent about one day producing that result, it all said and done. So how many hours do you work in a day? Let's say for argument's sake it was 10 hours in a day.
So that means his IGV is gonna be £2,800 per hour.
So anything that you're doing that he could pay somebody less than that per hour to do, should be outsourced.
Because let's face it, if you can be spending your days doing this, let’s say you work 100 days in a year, that is going to be £2,800,000 in a year.
So that's what you could potentially be doing, rather than focusing on going after those £100 jobs, £150 jobs, one day, two day little jobs. That number is what you could be generating with just you doing sales.
So that being the case, if his IGV £2,800 an hour, then realistically he should be outsourcing all the other shit and just doing the stuff that is gonna be bringing in that kind of return. Because that's the potential that he could be doing, that's what he had done.
We know it's what he could be doing he has already done it. If he has done it then go and do it again.
Again it depends what your high-level outcomes are and what level you're growing to and all that kind of stuff.
But ultimately you need to stay focused on this.