Stop Wearing These Hats & Start Avoiding the 60% Time Trap in Year 3

Wasted time for micro-business owners often increases by 60% between year one and year three. It’s a surprising and frustrating reality for many, but it’s something that happens almost naturally as the business evolves. The early days of starting a business are exciting, even exhilarating. Most owners dive in headfirst because they’re driven by a passion, a mission, or the dream of leaving a legacy. This excitement carries them through the challenges of wearing multiple hats—being the salesperson, the marketer, the admin, and everything in between. The thrill of building something from scratch makes the long hours and sacrifices seem worth it. Many business owners work late into the night or miss time with loved ones, but it’s fueled by the joy of watching their vision come to life.

"I loved it at first," Claire, a member of The Yellow Mastermind, said. "I was building something that mattered to me, and I didn’t care that I was working every hour of the day. It felt like every small win was a step toward my bigger dream. I was on a high, and it didn’t bother me that I was sacrificing so much."

That initial rush can sustain a micro-business owner through the tough, all-consuming first year. While juggling multiple roles, the passion for the business keeps them motivated, even when it means less time for themselves or their families. But as time goes on, the excitement starts to wear off. By 18 months, the pace of the work becomes exhausting. The business starts to feel like a job that’s becoming more complicated by the day.

As the business grows, so does the workload—more clients, more services, more paperwork, more staff. The hats they wore in the beginning start to feel heavy, and what once felt manageable now seems overwhelming. Many business owners get stuck reacting to whatever immediate need arises, instead of planning and prioritising their time. There’s simply more to do, but no more time to do it.

"It all hit me in my second year," said Michael, another member of The Yellow Mastermind. "At first, I was excited to take on everything, but soon I was just buried. There were too many clients, too many tasks, and no time. I found myself reacting to whatever problem was loudest, and avoiding the bigger, important stuff because it just felt like too much."

Without proper systems in place—like scheduling, process automation, or task delegation—many micro-business owners start to struggle with inefficiency. Instead of planning for growth, they spend their days putting out fires. And as the workload increases, so does the feeling of being overwhelmed. This often leads to procrastination. Challenging or complex tasks get pushed aside because they seem too daunting, while smaller, less important tasks take up most of the day. The constant need to make decisions wears down owners, and they end up wasting time in ways they didn’t expect.

"I thought I could handle it all, and that kept me going for a while," Claire continued. "But by the time year two rolled around, I was mentally and physically drained. The paperwork, the client demands—it all started to pile up, and I didn’t have the right systems to manage it. I was just reacting all the time, and that’s where I lost so much time."

One of the biggest challenges is that many micro-business owners don’t adjust their time management strategies as their business grows. What worked in year one often doesn’t work by year three. Many still hold onto tasks they could easily delegate or automate, believing that no one can do it as well as they can. This mindset leads to inefficiency, with owners spending their time on low-value activities instead of focusing on what really matters. By the third year, wasted time has increased dramatically because the complexity of running a business grows faster than most owners adapt.

"It’s hard to let go," Michael explained. "I was still trying to do everything myself, even when it made no sense. I didn’t realise how much time I was wasting by not automating certain tasks or hiring help. It wasn’t until I was completely overwhelmed that I understood how important it is to build the right systems early on."

The fun and excitement of starting a business can carry an owner through the first 18 months, but without better time management and process improvements, that excitement fades into exhaustion. The complexity of running a micro-business outpaces the owner's ability to manage it effectively. That’s why wasted time tends to increase by 60%—it’s not that people aren’t working hard; they’re just not working efficiently.

"Looking back, I wish I had thought more about time management from the start," Claire reflected. "But being part of The Yellow Mastermind has helped me see that we’ve all been through this. We’ve learned from each other, and now I know how to prevent that kind of wasted time in the future." Investing in process improvements, learning to delegate, and building strong time management habits early on can make all the difference. It’s about keeping that passion alive while working smarter, not harder.