In this brand new post, I would like to tackle a major issue concerning many e-commerce business owners: that of prioritizing between their valuable time and hard earned money. It can get pretty confusing many-a-time and you may be lost as to which should precede over which. Well, here’s a system which can lead you in the right direction. It’s something very obvious, but at the same time, your discretion in these matters is of utmost importance. Without further ado, let’s dive in!
Let’s start with a familiar story line. You had a brilliant idea and thought of starting an ecommerce store for that. In the beginning, you are completely bootstrapping. You are doing everything possible by yourself to save money, because, of-course, as a new business just starting out you do not have money to spend. You are going to be wise and use your time instead to get things done, from sourcing to delivering, you are on top of everything. Now say after a couple of years, you business is booming. Your online store is attracting a huge traffic and you have a very large customer base. Can you even begin to think how much time and energy it would take you to serve each of those customers satisfactorily? Yes, when it comes to scaling you will be lost on how to prioritize. But the good thing is, more customers means more money to play around with.
By now you have understood that Time and Money are inversely proportional. At the beginning of your business, you have a lot of time but very little money. When your business scales, you have money but limited time. So what you do and what gets outsourced to other people to do largely varies on which stage of the business you are in and accepting that delegation of work is profitable and not a money depleting venture.
Here’s an infographic I created to help you understand how allocation of resources can work.
So, be wise and outsource what you shouldn’t be doing. It’s also important to give it to the right people, and you will be earning way more than what it will cost you!