The Energy Equation: How To Manage Your Most Precious Resource
December 11, 2024
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Your entrepreneurial energy is a finite resource that requires intentional management. Maximize your impact without burning out by focusing on high-ROI activities, setting boundaries, and prioritizing recovery.
Contributed by Gino Wickman, a hall of fame member of EO Detroit, a recent EO 360° podcast guest, and the author of Traction and Shine, as well as the creator of EOS® (the Entrepreneurial Operating System®), which more than 250,000 entrepreneurs use to run their companies.
As entrepreneurs, energy is our lifeblood. It fuels our ideas, drives our teams, and helps us tackle challenges head-on. But here’s the hard truth: energy is finite. No matter how passionate or driven you are, you only have so much to give each day. The question isn’t whether you have the energy—it’s whether you’re spending it on the right things.
The Reality of Finite Energy
Every day, you wake up with a limited supply of energy. Think of it as a bank account: every decision, task, or interaction is a withdrawal. Some activities drain your energy faster than others. That draining meeting? Withdrawal. A difficult conversation? Another withdrawal. Even things as small as answering emails or checking social media nibble away at your reserves.
On the flip side, there are energy deposits. These are the activities that recharge you—physical activity, deep thinking, stillness, creativity, meaningful conversations, or simply stepping away to breathe. But if your withdrawals exceed your deposits, you’ll find yourself overdrawn—and no entrepreneur thrives in that state. You will burn out.
Where Is Your Energy Going?
Most entrepreneurs don’t stop to evaluate where their energy is going. They’re too busy hustling, putting out fires, and chasing the next big thing. But if you don’t take the time to assess, you might find you’re spending most of your energy on things that don’t align with your vision or goals.
Ask yourself:
· What activities drain me the most?
· Which tasks feel like a slog, even when I know they’re necessary?
· What energizes me? What makes me feel alive and focused?
Identifying these patterns is the first step toward managing your energy. The goal is to maximize time spent on what fuels you and minimize what drains you.
The Discipline of Energy Management
In my latest book, Shine, I discuss The 10 Disciplines and how they can bring about peace while staying driven. Two of the disciplines that are relevant here are Disciplines #5 (Know Your 100%) and #6 (Say No Often). You have to understand your capacity while simultaneously saying no to things that aren’t in your energetic sweet spot.
Managing your energy requires discipline. It’s not just about working harder—it’s about working smarter and making intentional choices about how you spend your energy. Here are three key strategies to help you take control:
1. Delegate Low-Energy Tasks
If something consistently drains you, consider delegating it. Entrepreneurs often fall into the trap of doing everything themselves. But your job isn’t to do it all—it’s to focus on what only you can do. Free up your energy for strategic thinking, leadership, and innovation.
2. Set Boundaries
One of the quickest ways to deplete your energy is by saying yes to everything. Protect your energy by learning to say no—or not right now. Boundaries aren’t selfish; they’re necessary. Guard your time and energy like the precious resources they are.
3. Prioritize Recovery
Energy isn’t infinite, but it is renewable—if you prioritize recovery. This means scheduling time for stillness, reflection, and the activities that recharge you. Make rest and renewal non-negotiable.
The Energy ROI
Every decision you make has an energy ROI. High-ROI activities give you a significant return on the energy you invest. These are the tasks that align with your passion, vision, and long-term goals. Low-ROI activities, on the other hand, sap your energy without giving much back.
As you evaluate your energy expenditures, focus on maximizing high-ROI activities. This might mean spending more time strategizing, mentoring your team, or developing new products. Whatever it is, make sure it aligns with the bigger picture.
Take Control of Your Energy
The most successful entrepreneurs aren’t the ones who do the most—they’re the ones who do the right things. When you start treating your energy as a finite resource, you’ll find you have more to give to what truly matters.
This week, take a moment to evaluate your energy bank account. Where are the withdrawals? Where are the deposits? And most importantly, how can you shift your focus to the things that give you the highest energy ROI?