{"id":53766,"date":"2021-11-11T08:00:54","date_gmt":"2021-11-11T12:00:54","guid":{"rendered":"https:\/\/www.shortform.com\/blog\/?p=53766"},"modified":"2021-11-12T08:57:34","modified_gmt":"2021-11-12T12:57:34","slug":"invest-in-employees","status":"publish","type":"post","link":"https:\/\/www.shortform.com\/blog\/invest-in-employees\/","title":{"rendered":"Invest in Your Employees to Make More Money, Faster"},"content":{"rendered":"\n

Do you own a business? How do you use your earnings? How can you use that income to generate even more income?<\/p>\n\n\n\n

If you run a business, you may be tempted to save your income for a rainy day (or to put in your pockets). However, the authors of Who Not How <\/em>say that you’ll actually make more money<\/a>, and faster, if you use that money to invest in hiring more employees. <\/p>\n\n\n\n

Here is why you should invest in employees rather than saving your money.<\/p>\n\n\n\n\n\n\n\n

Investing in Personnel Creates More Money, Faster<\/strong><\/h2>\n\n\n\n

According to the authors of Who Not How, <\/em>investing in employees optimizes your rate of income and expansion. Investing in high-quality personnel kickstarts an ever-expanding cycle of growth for your business ventures.<\/strong><\/p>\n\n\n\n

Because you\u2019ve invested in experts, the authors explain, you\u2019re now efficiently producing stellar results, effectively elevating your business and validating your decision to hire experts. Your personnel will continue to optimize and improve the process they\u2019re engaged in, generating better results faster and further improving your income. They won\u2019t need your help to do it, so you\u2019ll reclaim your time<\/a>.<\/p>\n\n\n\n

(Shortform note: Once you kickstart this cycle of growth, you\u2019ll inevitably need to expand your team to keep up. Team growth can become difficult to handle; you\u2019ll inevitably hit a stumbling block once your team grows to between 25 and 40 people<\/a>. At this point, it becomes impossible for one leader to manage every employee or for each employee to see the whole picture. You\u2019ll need to set up management structures and autonomous teams and change the way you communicate.) <\/p>\n\n\n\n

As for what to do with that time, Sullivan and Hardy explain that you personally generate the most revenue when you commit your time<\/em> to generating revenue. In other words, hire personnel to free you from every possible task\u2014from cleaning your house to buying your shoes\u2014and instead prioritize tasks that make you money.<\/strong><\/p>\n\n\n\n

(Shortform note: You may take this as a recommendation to spend your reclaimed time working, but that\u2019s not the case at all\u2014when you work as much as you can, as most entrepreneurs do, you actually decrease<\/em> your productivity. Instead, use your reclaimed time to rest more<\/a> and maximize your ability to be creative and decisive: Aim to work a maximum of six hours a day, primarily in the mornings, and take frequent, small vacations<\/a>. Doing so gives you time to clarify your vision and reignite your purpose\u2014which, as an entrepreneur, is the most important part of your job.)<\/p>\n\n\n\n

Don\u2019t Save Money\u2014Spend It to Solve Problems<\/strong><\/h3>\n\n\n\n

As your resource pool increases, the authors suggest you continue to ask, \u201cWho can solve this problem <\/strong>for<\/em><\/strong> me?\u201d<\/strong> and don\u2019t allow yourself to return to a cost-focused mindset. If you find yourself worrying about cost and feel tempted to stop spending so much money on personnel, remember that cost-effectiveness usually only causes more problems. Indeed, the authors explain that money is valuable primarily because you can spend it to solve problems.<\/strong> According to them, the optimal solution to any <\/em>problem will always be the same: Find the right person<\/a> to solve the issue and pay them to do so. Don\u2019t do it yourself and don\u2019t cheap out.<\/p>\n\n\n\n