Why Business Owners Get Stuck Solving $50 Problems Instead of $800 Problems
I got a “thanks but no thanks” email from a prospective client late last year.
It’s always a bit tough to get those emails, but that's just part of running a business so rejection usually doesn't get me down too much. I trust that people know the exact right time to work with me.
But when I read a bit more about why this owner didn’t want to move forward, my stomach dropped a bit:
“I want to try fixing the financial systems issues myself first….. I know this might not be the best use of my time, but I still want to try.”
Ahem. Let’s dissect this a bit:
We've got a business:
-Generating just under $5M revenue / year
-Highly profitable, but facing big regulatory risks over the next 8 - 12 months
-Has a handful of locations with the newest one literally burning cash every month
-Has a full-time bookkeeper, but the rest of the team has experienced a lot of turnover in the last year
-Owner does not have the confidence in the numbers to use monthly reports for decision making
-Owner's effective hourly rate is just under $800/hr
And….. the plan is to personally rebuild the internal financial systems?? Hmm..
I mean, I kinda get it - I’ve tried to DIY lots of stuff I think is too expensive as well.
Sometimes it works out (painting my bedroom).
Sometimes it doesn’t (drywalling my garage).
And I often end up hiring the professional who gave me the “too expensive” quote in the end lol.
But this situation highlights a pattern I see all the time in owner-operated businesses:
Leaders stay busy dealing with low level operational probs because solving the big strategic issues feel riskier, heavier or more uncomfortable.
------->> Operational work creates the feeling of progress.
------->> Strategic work usually involves uncertainty, difficult conversations, and decisions that actually change things.
So instead, owners stay busy:
customizing QBO reports
rewriting SOPs
rebuilding spreadsheets
sitting beside the bookkeeper trying to “figure it out together”
Meanwhile, the real business probs remain untouched:
Looking at how to improve profitability at a 3rd location that is losing $40k / month,
Preparing for the Health Canada changes coming down the pipe, and
Taking an honest (hard) look at why employee turnover has drastically increased over the last 12 months.
Hey, if you feel called out, I’m right there with you, friend.
I do this kind of stuff too.
As owners it’s so much easier to do the things that feel urgent and easy versus the stuff that only we can do.
But as long as your time is spent solving $50 / hour problems, your $800 / hour problems will remain.
Well, they will get solved eventually - later, at a higher cost, under more pressure, and with fewer options. That’s the real consequence.
Because regulatory issues, profitability leaks, leadership breakdowns, succession planning gaps, and team/culture problems don’t stay ‘frozen in time’ while the owner fiddles around with spreadsheets and SOPs.
They compound quietly.
In closing, here’s the question I’ve been thinking about lately:
What $800/hour problem am I avoiding by staying busy with $50/hour work?
Food for thought.