I think it’s a zero sum game

Most of the users here at IAC-EZ are freelancers, coaches, small business owners, and entrepreneurs. This is a hard-working group who believes that working for themselves provides a superior opportunity to working for others.

But this group also has a challenge that the 9-to-5 employee doesn’t have: The battle for the balance between time and money. That is: The person who is content to show up to work in the morning, spend the day at their desk, and leave work at 5 has the rest of the time to spend on themselves and their family. But the freelancer, coach, small business owner, and entrepreneur do not have that luxury. They may have to work 8 to 6, 8 to 8, or even be on call 24/7.

Most of the entrepreneurs (plus freelancers, coaches, etc.) that I know embrace the lifestyle, even if they know it’s not perfect. But ultimately, I think each one of us (I’m including myself in this group) would trade a little more money for a little more time.

It’s a zero sum game, or it’s about as near to one as you can get: I can make more money by spending more time or if I need some time to do something else, I will make less money.

It’s something I’ve spent some time thinking about, especially this month when a freelancing friend of mine got sick at the beginning of the month, worked hard to catch up on his work through the middle of the month, and then was delayed again at the end because of a death in the family. Neither “delaying” event was in his control but the lack of time equated to a lack of revenue. That’s the challenge of the self-employed.

The answer is not an easy one, nor does it happen overnight. Part of the solution, I believe, is to build up a few passive income streams (or work generated through employees) so even if you never fully replace your own personal, active income, that revenue can at least offer a cushion. Some savings, too, is important. And the minimization of debt. None of those will come as surprise to anyone, I think; I’m sure that most entrepreneurs would agree that those are useful ways to help.

There’s an interesting blog post over at TheSimpleDollar that gives an interesting perspective: The author talks about minimizing your reliance on money as much as possible while maximizing the amount of time you have. To summarize his post, he says that it’s all about time and it shouldn’t be all about money.

I think he has some interesting things to say but I’m not sure that I entirely agree. I do believe that money won’t buy happiness and time really is valuable when you can spend it with loved ones, but money is required not just to live but to build a business. If I wanted to maximize my time and minimize my reliance on money, I’d just get a regular job somewhere. Certainly the stress of annoying coworkers pales in comparison to the stresses that can come with building a business. But I, like many other freelancers, want to build something. So for a few years at least, that requires a lot of time to earn as much as possible to fund growth.

And just in case you’ve gotten to the bottom of this post and disagree or have more questions, let me clarify: This post isn’t my final word on the subject. I do think time with family is invaluable. I’d love to get to the point where I don’t work but have an income. But I’m not there yet and I don’t think you are either and until we are, we need to think about and talk about the balance between work and time. This blog post is just to continue the conversation.

Jessica Routier, IAC-EZ

Who wants to save money… wisely?

Lowering expenses, saving money, reducing costs. Those are magical words in the ears of business owners and entrepreneurs! Who among us doesn’t want to cut back a bit on our spending and see our profit rise a bit as a result!?!

I think saving money is an art more than it’s a science. I say this because I see lots of businesses trying to save money on the wrong things. Sure, the dollars make sense but there are other factors to consider! One example I see this in is marketing: Lots of businesses will hire low-cost marketers who may not be fully qualified to do the work, but they hire them instead of a more qualified person who costs more. Consider, however, that the more qualified marketer can create returns that not just higher but proportionally higher than the under-qualified marketer. (Clarification: I’m not a marketer so it doesn’t matter to me what you do, but that’s just an observation I’ve made).

So, how can you save money wisely? I don’t think we can simply ask the question “Can I get the same thing for a lower price?” even though that’s often the question asked. Instead, I think we need to ask the question “Can I get the same results for a lower price?”

That’s a big difference. To use the marketing example: The answer is “Yes” to the first question but (in my opinion) a resounding “No” to the second question.

Other considerations need to be made, too: For example, which of your choices is going to scale with your business as it grows? It may be that neither your more expensive or your cheaper option will scale appropriately and you need to find a third alternative. And consider the non-dollar cost to you in terms of time and effort: Lots of entrepreneurs accept a lower-cost solution which requires them to do more of the work. That’s not necessarily a bad thing if you have the time but you need to make sure if you have the time!

I’ve started to collect some money-saving ideas here. Not all of these ideas will be right for your situation, but they may give you some ideas to start. Check them out and if you have your own great money-saving ideas, feel free to add them to the comments.

How to Cut Costs In Business
Five Tips for Beating Inflation
Money-Saving Tips Anyone Can Follow
10 Easy Ways to Save Money In your Business
Cut Costs Without Cutting Muscle and Brain

Jessica Routier, IAC-EZ