Stuck On The Tools? Working Massive Hours, Feeling Burnt Out & Unsure How To Grow?
👇 MULTIPLIER EFFECT TRAINING👇
When I was growing Response Electricians, I thought as long as I was pushing as hard as I could, working 60+ hour weeks, we would be growing.
Surely, working that hard equals growth, right?
I WAS FUCKING WRONG!
I was on the tools, running around, juggling multiple roles, and constantly feeling overwhelmed.
Despite all my efforts, growth was stagnant, and I couldn't understand why.
I mean literally had no idea what was going on…
In this lesson, we're diving into a crucial concept that changed everything for me: the Multiplier Effect.
By understanding how our time impacts various tasks within our business, we can achieve nearly effortless growth.
Let's break it down step by step.
Understanding the Multipliers
As business owners, not all tasks we perform are created equal.
Some have a significant multiplying effect on the quality of outcomes and overall business growth, while others do not.
1. When We Are on the Tools As Business Owners
When we, as business owners, are on the tools, our efficiency is limited to about 55-65%.
This means we're juggling multiple roles: answering phone calls, organising parts, project managing, marketing, and selling.
All these responsibilities lower our efficiency and make it nearly impossible to grow our business.
As sole traders, we might experience periods of busyness followed by quiet times, balancing out to a stagnant state without real growth or profitability.
2. Employed Tradespeople on the Tools
Once we hire tradespeople, we see a 1 to 2 times multiplier effect based on their competency.
We're able to schedule our tradespeople more efficiently, focus on organising parts, and ensure tighter scheduling.
This increase in efficiency can double our revenue, transforming our business operations significantly.
The more competent our tradespeople are, and the better we manage them, the higher the multiplier.
3. Administration Tasks
Admin tasks like data entry, answering phone calls, and handling invoices are essential but don't multiply our business's impact.
These are 1X tasks, meaning what we put in is what we get out.
While necessary, they don't contribute to growth and should be delegated as soon as possible.
4. Operations Management
Operating at a 3X multiplier, this involves quoting, invoicing, scheduling resources, project management, and tradesperson/apprentice development.
These tasks have a significant impact on our business.
They ensure smooth operations, high conversion rates, and optimal resource allocation, which in turn maximises profitability.
5. Sales and Marketing
Sales and marketing tasks have a 5 to 10 times multiplier effect.
When we focus on following up on quotes, engaging in marketing activities, and converting leads, we drive substantial growth.
This area should be a primary focus once we have the capacity to handle the increased workload it generates.
6. Strategic Planning
Strategic tasks include vision setting, goal setting, implementing systems, and optimising processes.
These have a 10X multiplier effect.
However, these tasks often fall by the wayside when we’re overwhelmed with operational responsibilities.
Prioritising strategic planning is crucial for long-term growth and success.
Key Takeaways
On the Tools: Less than 1X multiplier. Limited growth potential.
Tradespeople: 1 to 2X multiplier. Increases efficiency and revenue based on competency.
Admin Tasks: 1X multiplier. Necessary but non-growth tasks.
Operations Management: 3X multiplier. Essential for smooth operations and profitability.
Sales and Marketing: 5 to 10X multiplier. Key to driving substantial growth.
Strategic Planning: 10X multiplier. Crucial for long-term success but often neglected.
The Path to Growth
To grow our business effectively, we need to delegate tasks with low multipliers (like admin and on-the-tools work) and focus on high-multiplier activities (like operations management, sales, marketing, and strategic planning).
By creating capacity through hiring and delegation, we free ourselves to work on the areas that truly drive growth.
Step-by-Step Action Plan:
Hire Tradespeople: Create capacity by hiring skilled tradespeople. This allows us to focus on quoting and operational tasks.
Delegate Admin Tasks: Hire experienced admin staff to handle 1X tasks.
Focus on Quoting and Project Management: Ensure our quoting processes are efficient and timely. Focus on project management until we have enough profit to delegate to an ops manager (around 4-5 full-time tradespeople).
Follow Up on Quotes: Convert leads into jobs by following up on every quote sent.
Invest in Sales and Marketing: Spend time on follow-up, marketing strategies, and converting leads.
Strategise for the Future: Dedicate time to vision setting, goal planning, and system optimisation.
Realisations and Next Steps
Recognise the impact of our time on different tasks.
Prioritise high-multiplier tasks to drive growth.
Delegate lower-multiplier tasks to free up our time.
Continuously review and adjust our focus based on our business needs.
By understanding and applying the Multiplier Effect, we can transform our trade business from stagnant to thriving, achieving both operational time freedom and profitability.
Feel free to share your realisations, experiences, and lessons in the comments below to help our community grow together.
Thanks for reading, Greg