Captain’s log, stardate 20181013
Sent by Jonathan Stark on October 13th, 2018
How much money would you have left over at the end of the year if you paid a freelancer to do your client work for you?
If your answer is “probably none” then you are operating a business that is generating zero profits. You will never get ahead if you are operating a zero profit business. At best, you will barely get by.
Furthermore, this probably means that you have no cash reserves. So if your costs increase slightly or your revenue decreases slightly, you’ll be operating at a loss, which you can probably sustain for a few months at most.
Your revenue is not your profits. Your profits are what’s left over after you subtract your costs from your gross revenue. And one of your costs is your time.
Spend fewer hours on client work AND increase your revenue. If you bill by the hour, this probably sounds like a logical impossibility. This is because you need to disconnect your time from your money if you want to meaningfully increase your profits.
Once you do that, you can finally start getting ahead instead of just getting by.