Who doesn’t want to make more money?
We believe that every business owner should be compensated appropriately for their efforts. And every business owner should decide for themselves what the right amount of compensation is for them.
Is it $100,000, $1,000,000 or even $10,000,000 per year?
So if you want to make more money this post is for you. It’s not going to be easy but it sure will be worth it.
Note, at New Economy we believe money is simply a tool to do good things in the world. We believe we are called to be stewards of this resource and not be controlled by it.
Our mission is to help unleash the full potential of the growth-minded entrepreneur.
We want to help you gain control of your finances to make smart decisions to build and grow your Company.
In this article, you will learn about:
- A new way to think about Compensation
- An EOS tool to help you make more money
- Where the rubber meets the road on compensation
- 3 key takeaways
Let’s dive in.
A New Way to Think About Compensation
Conversations around compensation can be tricky. It seems to be one of those topics that are a bit “off limits”.
However, we have built New Economy in a very open and honest way.
We are transparent with our numbers. Our numbers are simply a way to measure the financial condition of the business. And if we want to have a conversation around compensation, we need to be on the same page with the financial condition of the business.
For instance, we share the following with every team member:
- 12 weekly metrics in our scorecard
- Actual financial metrics on a monthly, quarterly, and annual basis
- Budget versus Actual reporting on a monthly basis
- Forward-looking projections on a monthly basis
If you are not sharing financial information with your team, you should consider it. Perhaps this is a new way of thinking for you.
Your team will appreciate your vulnerability and trust them with sensitive information. The alternative is they make up stories of their own that are not based on data. Maybe they all think you are making $10,000,000 per year and this is your chance to provide them with a dose of reality.
A reflection on money
As stated above, we are strong believers that money is a tool.
How about you, what do you think about money?
Here are some questions that will encourage you to go deeper on the topic. Really think about these questions and write down in your journal everything that comes to mind.
- Do you feel you are being compensated appropriately?
- How are you adding value to people? Are you solving their problems?
- How can you add more value to people?
- What is important to you that you believe money will provide?
We believe our businesses are here to serve people. If we are able to solve our customers’ problems or help our employees get what they want, we as business owners will be rewarded. This is not something to take lightly and the beauty of the situation is we are in control of the outcome based on the choices we make.
For us, making more money is only valuable as it brings more freedom to do the things that we love.
An EOS Tool to Help You Make More Money
Love + Work
Before we jump into the tool, we want to share a bit on love + work.
Yup, you heard that right.
We are big advocates of understanding what you love to do.
Dan Sullivan of Strategic Coach calls this your unique ability. There are the things that light you up. They naturally capture your attention. They are activities that pull you towards them. These are activities that you are gifted in and enjoy doing them.
In other words, these are activities that you love. You love to do them and you are great at doing them.
Ultimately, your love for doing these activities produces a contribution for others like solving a problem for them or helping them get what they want.
We encourage you to spend some time reflecting. Here are some questions we journal on every 90 days or so:
- Have you spent any time considering the extraordinary uniqueness of you?
- What gets you excited to go to work every day?
- Do you have a chance to spend some time on what excites you at work?
See if we spend about 20% of our time on the things we love and grow that percentage each quarter we will continue to be working in our flow. We will be producing value for others that will have a direct impact on our compensation.
But how do we do this…..keep reading.
The EOS tool to make this happen
Making more money goes hand in hand with spending as much time as possible on things that you love and you are great at. These things should be contributing to others in terms of helping to solve their problems and helping them to get what they want.
Have you guessed the tool?
It is the simple yet very effective Delegate to Elevate tool.
The tool encourages you to list out all of the activities that you work on during the day. Further, it has you then drop these activities into 4 different quadrants as follows:
- Quadrant 1 – Love doing it and great at doing it – This is where you want to be spending the bulk of your time. These are higher-level functions that align with what you love to do and your unique abilities.
- Quadrant 2 – Like doing it and good at doing it – This quadrant is still high-level stuff but you want to strive to be in Quadrant 1. Here you like (not love) and are good (not great) at doing these functions.
- Quadrant 3 – Don’t like doing it and good at doing it – This quadrant is getting into the lower levels. You are spending time on things you don’t like. Enough said.
- Quadrant 4 – Don’t like doing it and not good at doing it – This quadrant is as low as it gets. Get the heck out of this one!
We all have to start somewhere. When we first started to use this tool, our leadership team members were spending time in Quadrants 2, 3, and 4. But now, we work on the tool every 90 days with implementing the tool.
Implementation of the tool is simply to Delegate Down to Elevate yourself up. This sounds simple but there is a lot that goes into this.
For instance, you need the right people under you to delegate. These tasks should be aligned with their unique ability.
You need the resources to support this role. You need to train the person that is taking on the tasks. The list goes on and on in a good way. The more attention that you give to this tool, the more you will be operating in Quadrant 1.
And the more you are operating in Quadrant 1, the more value you will be delivering, thus increasing your compensation.
Where The Rubber Meets The Road
Money always follows value. If you do something that you love, which provides value to others you will earn as much as you want.
However, you are going to have to really understand the concept of value.
Gino Wickman author of Traction and Founder of EOS says it this way. “If you are an entrepreneur or leadership team member, adopt this rule of thumb: never do $25 an hour work.
What Gino was getting at is the concept of value. We need to question where we are spending our time and the value we are creating.
- If we are doing $25 an hour work such as administration and operations that amounts to an annualized compensation of $50,000 per year.
- If you are doing $50 an hour work such as managing and achieving goals that amounts to a compensation of $100,000 per year
- If you are doing $100 an hour work such as creating culture, building a vision, and leading a small Company that amounts to $200,000 per year.
By now, hopefully, you get the point.
To make more you need to operate as much as possible within functions that you love and are great at doing, which results in contribution to others.
Lastly, we have lived this at New Economy. This does not happen over time.
When I, Jeff, started the business I was not operating in a leadership role as I was providing services to customers. Over time, I delegated the technical work to other technical resources. This allowed me to actually move into different seats in New Economy’s Accountability Chart. Further, over time, I started to delegate the operations and day-to-day management of the Company which has put me in the Visionary seat.
And yes, being in this seat has given me more opportunity and control around my compensation allowing me the freedom to do the things that are important to me.
3 Key Takeaways
The delegate to elevate tool is simple.
But it is a tool that has some depth.
It can not only be used to help you achieve your compensation goals but help to free up others to some of the things they love and leverage those things to make a contribution.
Here are 3 key takeaways.
- Do the work on reflecting on your thoughts around compensation. Get a sense of what money will actually provide to you and figure out how much you want to make. This will take some time to answer the above questions. We suggest writing them out in a journal and revisiting the questions in a 90 period.
- Figure out what you love to do. You should know your strengths and weaknesses and find ways to work in your strength zone. If you are spending much of your time doing what you love you will be able to transform this into a contribution and create value for others.
- Complete the Delegate to Elevate tool. As we are approaching your end, make it a goal to delegate one thing in each quarter in 2024. By delegating things down that are not in your “love doing and great at doing it” you will enjoy work more as you are doing the things you love and your compensation will increase.
There you have it 🙂
We are living proof that this system works.
New Economy Team Members are Experts in Accounting for Entrepreneurs
If identifying ways to decrease your taxes is not in your skill set or you want to gain control of your finances to make smart decisions to build and grow your business, New Economy is an excellent partner.
We’ll help you get your accounting and taxes done, and done right.
Schedule a time to meet with our Founder, Jeff, and discuss how we can add value to your situation.