Productivity Does Not Equal Profitability
Oct 03, 2024In the latest episode of "Keep What You Earn," Shannon dives into the crucial distinction between productivity and profitability. Drawing from personal experiences, Shannon reveals why working more hours doesn’t necessarily equate to increased earnings or a healthier business.
Shannon begins by recounting her transition from the accounting world, where more hours billed equaled more value and respect. She explains, "We came from this world where the more you worked, the more you made, and the more you were respected." However, this mentality is unsustainable and unhealthy in the entrepreneurial realm.
A key part of Shannon’s journey involved shifting her mindset from equating hours worked with value to understanding that her true value lay in the results she delivered. She shares a story of a lawyer friend who felt stuck at her earning ceiling despite working crazy hours. Shannon helped her see that she was “procrasti-working” – spending time on low-priority tasks that didn’t significantly contribute to her income.
One vital takeaway from the episode is that being productive doesn’t always mean being profitable. "Getting more done does not get you more money unless it’s driving real results for clients, unless it’s getting money in the door," Shannon says. She guides listeners on how to evaluate tasks by listing activities, identifying which ones generate revenue, and prioritizing high-value tasks. For instance, a coach might find group coaching more profitable than one-on-one sessions.
Shannon also highlights the importance of delegation, noting that many entrepreneurs take on too much too soon. By delegating low-value tasks, they can focus on high-impact activities. She suggests considering CFO power sessions, which help entrepreneurs assess profitability, allocate time and energy, and identify lucrative services.
In conclusion, Shannon reinforces that productivity does not equal profitability. "Even if you're feeling like you're super productive, getting a ton done, it doesn't mean you're making a lot of money." She encourages entrepreneurs to focus on tasks that genuinely drive profit and growth. For those who found these insights helpful, Shannon invites them to share the episode and their takeaways on social media, tagging her in the process. For personalized advice, she recommends looking into CFO power sessions and other resources offered through "Keep What You Earn." This episode is a valuable guide for anyone looking to make smarter, more profitable business decisions.
What you'll hear in this episode:
05:37 Focus energy on most profitable business activities.
07:28 Prioritize tasks to boost productivity and profitability.
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