Finance

You Are the Bottleneck

Every job goes through your hands.

You are working sixty hours. You are turning down work you cannot deliver. Somebody quoted you on a Tuesday and you have not gotten back to them because you were on a roof.

And everybody keeps telling you what a great problem to have, and you want to hit them.

This is where the thing either becomes a business or reveals itself to be a job you invented for yourself, with worse hours, no benefits, and you are the only one who can be fired.

Most men who start something spend the rest of their working lives here.

How you know

You are the bottleneck if any of these are true.

Revenue is capped by your calendar. More demand does not produce more money because there is no more you.

You are doing twenty-dollar work. Scheduling, invoicing, driving, ordering parts, answering the same question for the fourth time this week.

Nothing happens when you are not there. A day off produces a backlog rather than a normal day.

And you have stopped selling, because you are too busy delivering, which means the pipeline is filling from momentum rather than effort, and momentum runs out about ninety days after you stop.

That last one is the dangerous one. A man at the bottleneck frequently has his best quarter right before his worst one, because the work he sold three months ago is landing while he sells nothing new.

The transition

Out of here is exactly two things.

The first hire. Somebody else does part of the work.

The first system. The work happens correctly without you explaining it each time.

That is it. There is no third option, no software that solves it, no productivity method that gets a man out of this stage. Every one of those is a way of being the bottleneck more efficiently.

What actually stops men

Here is the part I want to be direct about, because men will tell you it is money and it is almost never money.

It is pride.

Not arrogance. Something quieter and more sympathetic than that.

Being the one who can do it right is, at this point, most of what he has. He built the thing. He is good at it. The whole enterprise runs on his competence, and everybody around him knows it, and there is a real satisfaction in that which nobody names out loud.

Hiring means introducing somebody who will do it worse, at first, publicly, with his name on the outcome.

And building a system means writing down the thing that only he knows, which is the beginning of not being necessary.

A man whose identity is built on being needed will sabotage the machinery that would free him, unconsciously, with excellent operational reasons for every individual instance.

The tell is a man who writes a checklist and then does the job himself anyway because it was faster this time.

It is never faster this time. It is faster this time and slower for the next four years.

What the bottleneck costs per week

Do this properly once and you will not be able to unsee it.

Here is a real week for a man at forty thousand a month, sorted by what the work is actually worth.

| Task | Hours | Market rate | Value |
|—|—|—|—|
| Selling and quoting | 8 | $200 | $1,600 |
| Doing the skilled work | 22 | $60 | $1,320 |
| Scheduling and dispatch | 6 | $22 | $132 |
| Invoicing and collections | 4 | $25 | $100 |
| Ordering and pickups | 5 | $20 | $100 |
| Answering repeat questions | 4 | $20 | $80 |
| Driving | 9 | $20 | $180 |
| Total | 58 | | $3,512 |

Twenty-eight of those fifty-eight hours are worth under thirty dollars.

Now the part that hurts. If he handed off those twenty-eight hours and spent even half of them selling instead, at $200 an hour, that is $2,800 of additional weekly value.

Hiring somebody at $20 an hour for twenty-eight hours costs $560.

He nets $2,240 a week. Roughly $116,000 a year, and he is currently declining it because he cannot afford to hire.

That table is the entire argument of Part Three and it takes twenty minutes to build for your own week.

The delegation ladder

Men treat handing something off as a single act. It is not. It is five rungs, and skipping rungs is why delegation fails.

Rung one: do it, he watches. You perform the task, narrating what you are doing and why. Twice, minimum.

Rung two: he does it, you watch. He performs it, you are physically present, you do not touch anything. This is where you discover the eleven invisible steps from Chapter Fifteen.

Rung three: he does it, then shows you before it goes out. Full execution, your review before it reaches a customer. Two or three cycles.

Rung four: he does it, then tells you what he did. No approval gate. Reporting only. This is the rung where men get nervous and slide back to three, and sliding back to three is how a person stays dependent for four years.

Rung five: he does it. You find out only if something is unusual.

Most owners jump straight from rung one to rung five and call it delegation, then are surprised when the work comes back wrong.

And most owners who do climb the ladder stop at rung three permanently, because rung three still lets them feel the outcome is theirs. Rung three is not delegation. It is supervision with extra steps, and it consumes almost as much of your attention as doing it yourself.

The whole return on hiring lives in rungs four and five. If you never get there, you are paying somebody a wage to make you a reviewer.

What to hand off first

Not the thing you hate most. That is the usual instinct and it is wrong, because the thing you hate is frequently the thing you are worst at explaining.

Sort your task list from the assignment above by two axes.

How often does it happen, and how easy is it to describe.

| | Easy to describe | Hard to describe |
|—|—|—|
| Happens often | Hand off first | Hand off second, after you write it down |
| Happens rarely | Hand off third | Keep for now |

The top-left box is where you start. High frequency and easily described means the training investment pays back within weeks and the checklist writes itself.

The bottom-right box is judgment work that happens twice a year, and trying to transfer it early is how a good hire ends up failing at something nobody could have done cold.

The cost of staying

Run the arithmetic, because it is worse than it feels.

You are capped. Whatever your calendar produces is your ceiling, permanently, and your calendar does not grow.

You are fragile. You get sick, the business stops. You have a family emergency, the business stops. There is no redundancy anywhere in the system and the single point of failure is a human being who is currently working sixty hours a week.

You cannot sell it. A business that is entirely one man is not a business, it is a job with equipment. Nobody buys it, because there is nothing to buy.

And you cannot stop. Not for a week. Not really. Which means you have built something that owns you, which is Chapter Twenty-Three and the whole point of the last chapter of this book.

An excerpt from The First Million. The free course is based on this material and is not the same thing.

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