BUSINESS
businesses thrive on moneymaking activi- ties—business-building activities that produce immediate, ongoing, or future in- come … regular activities that have prov- en themselves to be worthwhile and ben- eficial to the financial success of the business. As a business owner, the key to focus-
& H
ing time and effort on moneymaking ac- tivities is to truly understand which day- to-day actions produce steady income for your business. In theory it should be sim- ple enough to focus on those activities (the ones that make money) but, truth be told, many business owners have not made time to pinpoint them. Have you? When I think of moneymaking activi-
FINANCE
Understanding Moneymaking Activities: 5 Tips for Business Owners Written by Sharon Michaels
ere’s a success secret that really shouldn’t be a secret: Successful
ties I’m reminded of the Pareto Principle: 20 percent of day-to-day activities pro- duce 80 percent of the revenue. It may be time to analyze your typical
workday to understand the best use of your income-generating time. If so, here are a few suggestions to get you started:
1. Time management is a major factor in identifying moneymaking activities. No matter the size of your business,
how you manage time is going to have a direct impact on the amount of money you generate. Becoming more aware of how you spend your time and energy will help identify which activities are income-pro- ducing and which are not.
For one week, track your workdays
hour-by-hour. Each hour write down all of your activities for the previous 60 min- utes. Yes, every activity! Phone calls made, snacks eaten, computer games played, blog posts written, networking events attended, etc. At the end of your workweek, divide
your activities into the following catego- ries: “Administrative,” “Immediate In- come Producing,” “Long-term Goal Achieving,” “Time-wasting,” “Relax- ation” and “Distractions.” Analyze the results. Are there any eye-
opening realizations? Can you use your time and energy more efficiently and ef- fectively?
2. Fine-tune your immediate income- producing and long- term goal achieving activities into consistent moneymaking activities. This is where you begin to examine
your consistent income-producing activi- ties.
On a sheet of paper draw two columns.
Label one “Immediate Income Produc- ing” and the other “Long-term Goal Achieving.” List each moneymaking ac- tivity in one or both of the columns. Next to each activity, write an explanation of how or why that particular activity is a true income producer for your business. Rate each activity on a scale of 1 to 10, with 10 being the most profitable. Remember, the more worthwhile and productive your activities, the more prof- itable and financially successful your business. Does this exercise give you a clearer picture of where you should be spending the majority of time and ener- gy?
52 PROFESSIONAL WOMAN’S MULTICULTURAL MAGAZINE CELEBRATING 10 YEARS OF DIVERSITY WWW.PROFESSIONALWOMANMAG.COM
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