Job-to-business ratio: a rule of thumb

What is your job-to-business ratio?  This is a useful rule of thumb to help you, the owner, see if your enterprise is moving in the right direction. Are you moving towards being a robust business, or moving in the wrong direction, where it is dependent solely upon you and at risk upon what happens to you.

Here’s how to get a feel for your ratio. A job is work that you only get paid for when YOU show up.  No show, no money. A business is a system of processes that get results whether you, the owner, is there or not.

A high job-to-business ratio means your business is dependent on you, and therefore, you are more self-employed than a business owner.  A low ratio means you run a going concern, a true business.

Your ratio goes down the more people and processes are at work beside you as you work.  Your ratio goes down significantly if these people and processes are at work when you’re not even there.

Are you doing less of your financial reporting and less of the accounting?  Do you have processes in place that acquire customers?  Do you have systems in place for continually prospecting?  Is there a process for follow up?  Is value being provided to your customers in delivery of product or offering of service without you? If so, your job-to-business ratio is getting smaller.

It requires a change in your mentality. It requires a sacrifice of something important, for something more important.  You sacrifice your direct control for greater results.  You sacrifice a focus on you and what you can do, for what your business can do with people and processes working together.

Depending on your goals and dreams you may want the ratio anywhere from 10% to 0%.  Zero is where the business runs completely without you and you can put your time into something else.  If you love working in your business, zero may not be ideal.  But, if your ratio is higher than 10% and you become injured or ill…you and your business may be in trouble.

Start small.

What one small thing can you put in place this week that moves the ratio down?  Think people and process.
Process:  What’s the process for it?  Write it out step by step.  Is it specific enough so someone else can do it?
People:  Who needs to do it?  What skills do they need?

It may be a small gesture, but the more you move the ratio down, the more robust and effective you can make your business.

What’s your ratio?  Are you working a job now or running a business?  Let us hear from you.