One Person Guaranteed to Make Less Than They Could… The One Person Running a One-Person Business.
I wrote this with the hope that anyone who is currently running a one-man show at least considers hiring some business help to ultimately make more money.
Why? Pretty simple math really. A successful one-person business is almost always owned and operated by a person who is exceptionally good at least one particular thing. This means that they will be able to charge a fairly significant fee for their time because of the unusual skill. However, if you are running a business all by yourself then you will have to wear a few different hats in terms of the type of work and tasks performed. Many of these are important but much less complicated and can be performed by many people. Thus the value of these tasks is considerably less than the specialized tasks performed by the skilled entrepreneurs.
The one man business can work but is never the best most profitable way simply because that one person will have to do other more mundane, simple, and less skilled tasks. Such tasks would create less value for the business than the tasks performed using the extraordinary talent.
The obvious most profitable way of running such a one person business would be to simply hire a person to do these “small business tasks” and in place of the new free time the business owner can perform more product/service tasks and make more money and more profit as an obvious result.
The only exceptions would be if the business had secrets that must be kept in order to maintain the current revenue and profit levels that would be otherwise exposed if an outside party was hired to help in the necessary capacity needed to perform the routine everyday business tasks.
I point this business theory and philosophy out to everyone because I believe that it is important for even the smallest businesses and ventures to optimize revenues and profits mainly because by doing so more jobs will be created which will raise the overall wages and more value will be created which will raise the overall standard of living and quality of life for all.