Business owners are known for taking on too much themselves, but what is it costing them? The real cost may be far greater than anticipated.
As a business owner, you may have found yourself buried under a mountain of administrative tasks, wondering if you’ll ever dig your way out so you can focus on building the business. If that rings true, you might be considering whether hiring a virtual assistant (VA) could be the solution. Let's take a closer look at the financial realities of hiring a VA versus doing it all yourself and explore why bringing a VA on board could be the best investment for your business and yourself.
Embracing Change: Staying Ahead in Business
Consider that the pace of change in the business world is only getting faster, and the most successful business owners have to devote their time to high-value tasks—including business strategy, managing growth, and employee engagement. A typical executive leaves only about 15% of the time to focus on the high-impact tasks that drive significant growth – what we call “meaningful work.” Those that try to do their own administrative work—including checking and responding to emails and scheduling (or rescheduling) meetings—will find themselves consumed by low-value tasks and falling behind.
Strategic Coach founder Dan Sullivan said, “The best investment in your own productivity, bar none, is a direct assistant who will handle your schedule and hundreds of other small but important details that clutter up your life and mind—and when added up, cost you hours of your time.”
Focusing on Your Unique Ability
Forward-thinking business owners know that the secret to success in business, and arguably to life, is to focus on high-payoff activities (HPAs). To run your business, more than HPAs need to get done. Someone needs to do non-HPA stuff like run reports, check email, book calls and meetings, etc.
As a business owner, you should spend 80% of your time on activities that align with your unique abilities—those tasks that you excel at and that drive your business forward. Administrative tasks, while essential, often fall outside this scope. Delegating these tasks to a virtual assistant allows you to concentrate on what you do best, thereby enhancing your productivity and business outcomes.
The True Cost of Doing It All Yourself
A business owner’s time is incredibly valuable, often worth between $100 and $400 per hour. When you spend your time on administrative tasks—like scheduling, email management, and data entry—you are essentially paying these high rates for work that could be done at a fraction of the cost by a virtual assistant. This misallocation of your valuable time leads to missed opportunities and slower business growth.
The Financial Impact: Virtual Assistant Cost vs. No Assistant
When comparing the virtual assistant costs to handling all tasks yourself, several factors come into play:
- 1. Opportunity Cost: Every hour you spend on administrative work is an hour not spent on strategic activities that drive revenue and growth. By hiring a virtual assistant, you can redirect your focus to high-impact tasks that are worth significantly more.
- 2. Efficiency and Productivity: Virtual assistants are skilled in handling administrative tasks efficiently. They can often complete tasks faster and with greater accuracy than if you were to do them yourself, freeing up more of your time for business development.
- 3. Scalability: As your business grows, so do the demands on your time. A virtual assistant can scale their hours to meet your needs, allowing you to handle more business without the overhead costs associated with a full-time employee.
As a business owner or executive, you should be considering the value of your time when deciding what to work on. Think about it this way. If you were to quantify the time spent on admin work, what would that breakdown look like in terms of real dollars? Here’s a conservative estimate: For example: If you spend as little as 40% of your time on administrative activities and your compensation (including non-tax related distributions) is $200,000, that means you’re spending nearly $80,000 a year on administrative work.
And that doesn’t include the opportunity cost of what you would do with that time. Our clients tell us that the opportunity cost is often 5x the “actual” cost. Here’s what business owners had to say about delegating their admin work:
“WBN’s remote professional, Bianca, has transformed our operations at Aberdeen Advisors. Starting as an executive assistant, she swiftly rose to Operations Manager due to her problem-solving prowess. Bianca has created 36 systems, making our operations more efficient and scalable. Her automation of tasks like calendar invites and directions benefits our clients, adding professionalism and service to our business.” - Emery Elligner - CEO, Aberdeen Advisors inc.
The Return on Investment: Maximizing Your Time and Resources
Investing in a virtual assistant cost can yield a remarkable return on investment. Here’s how:
- 1. Increased Revenue: By delegating administrative tasks to a VA, you can focus on high-value activities such as client acquisition, strategic planning, and innovation, directly impacting your bottom line.
- 2. Cost Savings: With virtual assistants working remotely, you avoid the additional expenses of benefits, office space, and equipment that come with hiring a full-time employee. This can result in significant savings over time.
- 3. Improved Time Management: Virtual assistants handle routine administrative tasks, freeing up your time to focus on high-priority activities and strategic planning. This allows business owners to dedicate more time to growth and revenue-generating activities, enhancing overall productivity.
The Smart Financial Decision
Hiring a virtual assistant is not just a cost-saving measure; it’s a strategic investment in your business’s future. By offloading administrative tasks to a skilled VA, you can focus on growth, innovation, and revenue-generating activities. The cost of not hiring a virtual assistant is the lost potential and opportunities that come from being bogged down by tasks that do not leverage your unique skills.
Ready to save money and time with an assistant? Download our free Guide on why every business owner needs an assistant, or request a free consultation with one of our consultants today.