We’re all familiar with the saying, aren’t we? However how many of you have actually worked out what your time is actually worth and act accordingly?
My guess is that the majority of you have no idea unless you charge by the hour. If you have no idea, I think you should, you might surprise yourself!
To calculate your minimum worth, divide your yearly income by 2000 (amount of hours worked in a year). To figure out your maximum worth, think of how much you can earn when you’re truly productive, billable client time, closing a sale etc… Halfway between those 2 figures is the true value of your time. This, of course, doesn’t take into account the value you place on spending time with your family and friends. How much do you think an hour with your family is worth?
None of you would pay someone £25 an hour to do a minimum wage job, would you? Now replace those numbers with yours. Don’t pay someone £50 an hour to do a £20 an hour job. In that last sentence, you’re the first number. Whatever the value of your time, think about every activity you spend your time on every working day.
Should you outsource some of it? I’m guessing the answer from the figures above is probably fairly obvious.
As an entrepreneur, it’s always difficult to let go of certain things but it’s probably the best way you can increase your income and decrease the hours you work.
If we were to go back to your maximum figure (at your most productive) and multiply it by 2000, you could be looking at your potential yearly earnings by just switching the way you think.
I recently had a conversation with a client who decided to design his own website. He was rather proud of his work and admitted that some of the features weren’t working properly because he couldn’t figure out how to set them up. When I asked what drove him to design his own site, he mentioned he didn’t want to spend hundreds of pounds on something if he didn’t have to. It’s a fair comment but one which often doesn’t apply in business. He’d been quoted £350 for his site and thought he probably could do it himself.
During the course of the conversation, he mentioned he’d spent a solid week working on it. At that point, I nearly fell of my chair. From a previous conversation, I know that he bills his clients £50/H for his services. Assuming he only spent 4H a day working on his site, the actual cost of his website is £1000. I pointed out that instead of being £350 better off, he was in fact most probably £650 worse off. He admitted he’d never thought of it that way. So not only did his website cost him £1000 but he now needed to pay someone to fix some of the features for him…
Be stingy with your time! It’s worth far more than you realised! Don’t do a job unless you can do it fast and efficiently. Virtual assistants, bookkeepers, web designers, copywriters are all there to be utilised and help entrepreneurs. Those who have understood that outsourcing those jobs makes financial sense are generally successful in their undertakings since they can concentrate on what they do best.
Next time, before starting anything, ask yourself “Do I really need to do this? Is there someone who can do it quicker and better than me?” if the answer is yes, pick up the phone and delegate!