Remove Yourself To Solve All Problems

What I’ve discovered from working with thousands of business owners is that success does NOT depend on some minimum number of hours worked, but on embracing and optimising your circle of competence.

No doubt you’ve heard of the concept of staying inside your “zone of genius” … of finding the work that best compliments your unique talents and experiences for optimal effect and income.

A step in the right direction, but it doesn’t go far enough.

As a business owner, it is crucial that you define your circle of competence and then stay within the perimeters of it. Those who venture outside their circle of competence get confused, their skills become diluted, results weaken, and eventually, they will fail.

The purpose of business is to provide value to people and earn money in exchange for doing so. Moreover, the only way you can provide value to clients and customers is by focusing on the main tasks that deliver them results.

Everything else? Outsource.

Outsourcing the repetitive (but necessary) aspects of your business could be the best decision you make as an owner.

All those three-minute tasks you repeat throughout the day take a massive toll on your productivity.

If this sounds like your current situation, you may find yourself creatively spent, incapable of coming up with new ideas or able to see things from a different perspective.

Or, (and this is more likely) you end up just burning out and looking for shortcuts, which can lead to costly errors, recklessness, or avoidance.

This mental strain has a name: decision fatigue.

I have worked with many brilliant entrepreneurs and business owners and have seen some of the most talented men and women struggle with this concept.

By outsourcing tasks to an expert and staying within your circle of competence, business owners develop mastery, deliver amazing results, succeed at the highest level and grow at lightning speed.

When things are small, everything is manageable. However, with scale comes new challenges and time becomes your most valuable resource.

Here are the top ten recurring financial mistakes that I see small business owners make.

How many are you guilty of committing?

  • An incorrect decision regarding the structure and set-up of a new business which has adverse consequences later
  • Overwhelmed and stressed by managing both their business and their finances
  • Poor tax planning resulting in paying more tax than necessary
  • Little understanding of how their business is performing financially and when they realise, it is too late to make the required adjustments
  • Not having a budget and management accounts resulting in cost overruns and therefore poor profitability
  • Cash flow problems due to poor planning
  • Incorrect application of VAT to sales or purchases
  • Calculating the taxes on wages and salaries incorrectly
  • Late or inaccurate tax returns, resulting in issues with the Revenue Commissioners
  • Late returns to the CRO which can have severe and costly consequences for a Company

As an owner, optimising your time means managing your workflow.

Every mini-crisis you diffuse.

Every employee you micro-manage.

Every Google Search, Blog post and YouTube Tutorial you consume to learn something new.

Will sap valuable time and energy from your main tasks that make your business more profitable.

Speed vs Maintenance.

No matter how multi-talented you are, as you scale you will reach your limit, and you will burn out.

My most successful clients operate what is known as decentralised businesses…

This new concept of management allows the business owner to outsource repetitive (but necessary) daily tasks to external providers, allowing them to focus more on major decisions.

Outsourcing allows these founders to optimise their time on the most critical revenue generating activities while at the same time, knowing that section of their business is running smoothly.

They are able to leverage the skills of seasoned experts at a fixed cost.

And they are cleaning up in the process.

“what matters in business is not how large your circle of competence is, but on how well defined the perimeters are.”

A smart owner will hire someone and pay them a wage.

However, millennial entrepreneurs are hiring top 1% experts at a fraction of the cost.

Imagine if every person you hired operated at 100%.

Imagine if every hire was fully accountable for results, not just attendance.

So, what is a 1% expert?

To help you fully grasp the concept, let me tell you the story of my client, James McIlvenna of K9 Connectables. An industrial designer by trade, James developed a range of dog toys that rewards your pet with a treat once he/she completes the puzzle. James focused on his strengths as an entrepreneur and went from a small Irish E-commerce business to one of the fastest growing Irish SME’s, selling products online to customers across five continents.

Before James came to me, he was working 60 hours a week, managing everything himself. He was designing the product; he was sourcing manufacturing in China; he was setting up his distribution network and building his online presence. On top of all that, he was slowly learning how to manage his accounts and was frustrated that he could not find the time to focus on the main tasks necessary for growth and scale.

Despite working for hours with devotion, the majority of entrepreneurs fail to recognise that the majority of businesses fail from either lack of focus or poor cash flow management.

Hiring an in-house accountant is always an option, but the only viable solution to the problem of accounting is outsourcing finance and accounting processes to a reliable firm.

I have seen clients go from strength to strength since making the transition and K9 Connectables is no different.

Before we commence work with a new client, we examine, in depth, a potential client’s business and propose precisely how we can optimise their cash flow. As we have streamlined our process down to a tee, we are far more efficient, effective, and accountable than the competition and as a result, can offer a far more generous rate than our competitors.

On top of that, we combine all the accounting services a business needs and spread it out as a fixed cost over 12 months.

The exact opposite of what most accounting firms do.

I have been in this game a while and have spoken to clients hit with €3,000, €5,000 and even €10,000 invoices at the financial year end.

This practice we would never dream of doing.

How counterintuitive is it that the firm responsible for cash-flow management becomes the number one headache once a year?

It baffles me and is something I’d love to stomp out for good.

So, back to K9 Connectables …

K9 have now been our client for almost 12 months and are going from strength to strength since making the transition.

We act as a trusted partner to the business, focusing initially on resolving all the existing issues from his previous arrangement.

Given my background of working as a Financial Controller for various companies, I was able to quickly and efficiently rectify any outstanding problems, allowing James and the company to focus on the tasks that grow the business.

Our practice prides ourselves on how responsive we are to new arising issues and prepare quarterly management accounts which give you (the owner) full visibility on your financial performance.

Unlike the competition, we understand our partners and know that when it comes to outsourcing aspects of your business – YOU NEED CERTAINTY.

Certainty that everything will be up to the highest possible standard with no stone left unturned.

Certainty that it costs this amount every month.

I’m currently searching for businesses.

I am searching for businesses and owners that are a good fit for what we do and want to scale fast by narrowing their focus and outsourcing their finances.

I aim to work with entrepreneurs and business owners that understand the power of leveraging financial expertise to grow their business.

If you feel like your business is a good fit for what we do, then here’s what you need to do:

Complete the application form on this page to schedule a commitment-free consultation with me.

This application is necessary to determine if I can help you and must be completed fully for me to get a proper insight into your business. Once I receive your application, we will schedule a quick 15-minute call and hopefully start working together to figure out what you want and how to make it happen in the fastest time possible.

Following our call, I will prepare a quote for your business free of charge, and we can hopefully begin a long and profitable partnership going forward.

If however, we are not a good fit you will still receive an insanely valuable strategy session and will be able to move forward with newfound clarity as to where you are right now and what’s holding you back from achieving the results that you want.

It will likely be the most valuable 15 minutes you invest in your business to date.

Looking forward to speaking with you.

Padraic O’Rafferty

Principal

Fortis Advisory