I read a Jim Rohn passage on this concept of “easy to versus easy not to” and I wanted to share this with you.
I got a text message from one of our CFO clients yesterday. And he’s got this decision to make in his business, and the decision sits around, will he continue to subcontract his work out or will he bring in employees? And… So the easy thing for him to do is make a decision on gut feel and do some rough numbers and see what that might look like. But what he chose to do is he reached out to me and the team and I put together a quick financial spreadsheet on this.
We compared, what’s it currently costing you for a crew to deliver your service? And what’s that per job? And then we looked at if you were to employ a team and we factored in things like the wages, superannuation, a car allowance. We factored in sick days, we factored in downtime, etc, and what we could quickly do is set this up and run various scenarios. We actually ran five different scenarios to show the best case and worst case. And then what we also showed was, what was the break-even point where the contracting equaled the same as the employment and what was it going to take to be ahead either way?
It would’ve been easy not to do this. It would’ve been easy for our client to say, I’m too busy for that, I can’t wait for that. And look, the reality is, we had about a 10-minute phone call. The team and I put something together and we delivered it to him last night. And so he wakes up this morning with a complete financial model on this for him that he can adjust and play with. But we also did a quick video explaining what we had done, so it was quick and simple to digest.
And here’s the thing, he can now make the decision based on data. He can now make the decision from a place of certainty to say, okay, I’ve run the numbers, here’s my best case, here’s my worst case, here’s where I think we’ll land. And his confidence in his decision has elevated.
And here’s my question to you, how confident are you in the decisions that you’re making on a day-to-day basis? So let me qualify this for a second. This does not mean I want you to procrastinate, this does not mean I want you to get paralysis by analysis. What this means is, you need to be able to quickly understand the financial impacts of your decisions. Best case, worst case, et cetera. And come and make your decisions from a place of confidence versus a place of hope.
Hope is not a strategy, okay. Yes, in business and entrepreneurship, we have to rely on gut feel. If we didn’t rely on our intuition, we’d probably never make a decision. However, you can quickly get access to information to confirm your hypothesis on the decisions you’re making. To confirm the impact, to understand and get clarity on the cost or advantage that you’re going to gain by doing this.
So if this sounds like something that’s interesting to you, please feel free to reach out, we’re happy to share any of our spreadsheets and tools to help you. Our goal is to help as many business owners achieve freedom and fulfillment through their business success. So, happy to help however we can.