Why it is important for small business owners to manage their time well
We have all heard the term “time is money,” which means that time is the most important asset for a small business owner. Since small business owners do not have the same amount of resources (e.g., financial capital, staff) as larger corporations, it is important to realize that every minute counts and should be managed well. Effectively (or ineffectively) managing time can be the reason a small business owner succeeds (or fails) so I believe time management should be a priority. I note three reasons why effective time management is especially important: Productivity, Health, Achieving goals. Also, I note some ways for small business owners to effectively manage time.
Productivity
Small business owners (especially sole proprietors) must coordinate many different types of tasks and responsibilities simultaneously, which means that getting overwhelmed and operating inefficiently is prone to happen. However, small business owners can offset this challenge and be productive by implementing effective time management strategies (e.g., prioritizing tasks and addressing these tasks first, setting reasonable deadlines, proper time allocation).
Small business owners never know when a potential opportunity (e.g., client prospect that will significantly increase revenue, networking, business partnership) will arise so it is important for them to be prepared to take advantage of these opportunities when they are available. Effective time management helps avoid being distracted by unimportant tasks so small business owners can then have the flexibility to pursue these types of opportunities that will help their businesses.
Health
As we are all aware, chronic stress is damaging to our health and operating a small business is inherently stressful as small business owners have financial pressures and seem to always be making critical decisions. One way to reduce stress and help mental health is to effectively manage time, which provides small business owners with a sense of control over their business operations.
Of the many benefits of being a small business owner, one of them is having complete control over your own daily schedule, which can lead to a healthy work-life balance. However, achieving this work-life balance can be quite challenging at times as it can be easy to fall into the trap of working at all times of the day, which can negatively impact personal relationships and health. Effective time management helps small business owners structure their days, so they are clear about what times are allocated for family, work, and leisure, which can help prevent burnout and maintain a healthy lifestyle.
Achieving goals
Whether it is a business or personal financial goal, we always use goals to measure achievement. Effective time management provides a structure for small business owners to stay focused and on track, which increases the probability of their stated goals being achieved. For example, some goals are large and long-term, but breaking them down into manageable tasks and allocating the appropriate time to each one helps keep the progress going forward.
Ways to effectively manage time
1. Prioritizing tasks
Small business owners should prioritize tasks based on their importance (to profitability) and then focus their time on making sure these higher priority tasks are finished first each day. One way to accomplish this is by planning each day in advance by creating a to-do list and allocating time slots for each task. Even further, another way of prioritizing tasks is delegating tasks that can be completed more efficiently by someone else, which allows small business owners the availability to focus on high-value activities that are most beneficial to the business.
“...delegate tasks that can be completed more efficiently by someone else, which allows small business owners the availability to focus on high-value activities that are most beneficial to the business.”
2. Try to avoid multitasking
Avoiding multitasking is difficult because there are always so many different things for a small business owner to do, but it is important to avoid it as it can lead to decreased productivity and increased errors. One approach to do so is to get into the habit of completing a task before moving on to the next task. For example, if a small business owner were writing a blog (marketing task), but also had to address some billing issues that same day, it would be beneficial to finish writing this marketing content first and then move on to address the billing issues. This action will help keep the momentum of writing content for the blog, which is a particularly important marketing activity.
3. Set boundaries
With so much to do, small business owners must establish boundaries to protect their time and avoid distractions by communicating availability to clients and employees (if applicable) to manage expectations. It is uncomfortable at first, but small business owners must learn to say no to certain things as it is important to not commit to tasks, projects, or opportunities that are not in line with what is most valuable for the business going forward. It can be tempting to say yes to everything but saying no (with grace) to certain things is extremely powerful for small business owners.