Are you a money rich but time poor business?

In a fast paced environment of this cutting edge business world, do you find yourself trapped into multiple things? Is your business doing financially better but you have a no time for leisure activities, if your answer is yes then you are suffering from Money Rich but Time Poor Syndrome.

Business owners, especially small business owners do well with making money but at a cost of devoting their personal leisure time into the business. They are actually ‘Money-rich, time-poor’. If you are a business owner, ask yourself:

1. Do you constantly feel rushed?
2. Do you take few breaks or holidays?
3. Do you feel stressed all the time?
4. Do you feel that your days fly so quickly

If you have answered yes then you are probably suffering from time poverty.

Money-rich, time-poor is an expression which arose in Britain at the end of the 20th century to describe groups of people who, whilst having a high disposable income, have relatively little leisure time as a result. The phrase ‘time poverty’ is used to describe such a situation. 

In the eyes of financial people, money has time value. The $1 today is more valuable than the $1 tomorrow because today’s money can bring you interest and it has greater buying power today. However, they probably do not realise, ‘time’ itself is a valuable property, which can not be replaced.

There are so many reasons causing business owners’ to suffer from time poverty. First is today’s competitive market. Due to globalisation, today’s businesses are not only competing with its visible neighbour, but also with the invisible competitors all over the world. A business owner has to try so hard to succeed. The second reason is New Zealand’s high labour cost. Unlike business people in low-salary countries who have many staff, New Zealand small business owners tend to do everything themselves. The third possible reason is lack of time management skills. 

It does not matter if you consider success as financial wealth and career progression. Or if you think success is having a sustainable work-life balance. You should think to overcome time poverty because time is a limited commodity which can be used to generate both wealth and leisure. 

Remember, time poverty does not come naturally with running a business; it can be solved through many ways.

1. Downshifting or adopting flexible working arrangements can be one solution. For example, the business owner can down shift administrative works to junior staffs. If the owner does not employ any staff, he can consider out sourcing some work. Engage an accountant and let the accountant take care of accounts issues so owners can devote more time on business decisions or their private lives. 

2. Business owners can adopt new software to improve the efficiency and save time. Accounting software can greatly reduce your time spending on managing your accounts. Payroll software can also reduce your time calculating staff’s wages every week.

3. Another tip is to do the ‘Important thing’ first before they become emergency tasks. Many people’s time are occupied by emergency tasks so they feel stressful all day. Setting an earlier deadline for yourself for critical tasks can be one of the solutions.

4. Consolidate your business affairs to make it simple, we generally see small businesses operating multiple legal entities. Consolidation can save you a lot of time in managing the paper trail.

5. Have a financial contingency plan, so on an average you should have at least 9 months of cash flow provision. Use other financial modelling such as budget, cash flow forecast, and management reports that can help you to identify loose ends of your business.

About the author:

Saurav Wadhwa is an Auckland based chartered accountant and a director of IBBZ Accounting Limited. He is very passionate about helping small business owners. His easy going personality and a friendly nature makes him easily approachable. For all your accounting and tax problems including overdue tax returns, and IRD audits & disputes you can contact him at This email address is being protected from spambots. You need JavaScript enabled to view it. or 027 5555 458.

Disclaimer:
Information above is provided by IBBZ Accounting Limited for general use only, if you are intending to rely on any of the information above please consult with us or seek a professional advice. If information provided above result in any kind of loss to you we can not be held responsible.

Date: 01/05/2014