What You Need to Know About Delegating Roles
I was losing thousands. This is the reason why.
I was delegating tasks that I didn’t fully understand. It’s a natural thing we do – when you don’t understand something you just kind of want to push it to the side and hope that it goes away.
For the first year of my business, I was delegating accounting while not understanding it. Let’s face it, numbers can be pretty boring.
So I let someone else look after my finances. They’d take care of my taxes, PAYG, and at the end of the day they’d say: ‘Aaron you lost money’ or ‘Aaron you made money’.
I don’t know about you, but that’s a pretty bad way of running a business. The best thing I ever did was grab accounting by the horns and understood it as much as I could. I took my electrician hat off and put my accounting hat on. I immersed myself in it and I took over everything.
I got rid of my internal accountant and I just started running the business myself. I was:
- Handling the invoicing
- Handling the accounts receivable/payable
- Running my own reports
- Calculating profit and loss.
In the beginning, I didn’t even know what a balance sheet was. The best advice I can give you is start to understand it. Read it every day. Start to download different balance sheets for your industry so you can see where you’re sitting. Start to understand it as much as you can.
One of the best things I ever did was get confidence around my numbers.
Once you have that, you know where you’re losing money and where you’re making money. So you can cut away the wasteful stuff and concentrate on the good. It transformed me as a businessperson and my business.
So that’s it: don’t ever delegate something unless you fully understand it yourself.