What's Your Time Worth?

Or, perhaps, I should ask; “How much do you value your time?”

If you’re like most owners, you’ll say things like “hugely”, “most important thing of all”, etc. etc.???????????????

But do your actions reflect that?

Or are you like my clients (or rather like the way they used to be before the started working with me)?

I had one client, many revolutions of the earth ago, who ordered the engine oil for the trucks and filled in tedious government export forms to name but a few tedious tasks that just about anyone with a modicum of sense and attention to detail could do once they were trained, obviously.

That type of person, back then, cost about ￡12 per hour (more like ￡20 per hour today, I’d guess).

So, he was effectively valuing his time at ￡12 per hour.

Yet, his income per hour, based on his salary and available dividends was ￡145 per hour.

Now, take a moment, and think about that. On what planet, I ask you, does it make sense to do that?

“None, Richard”, is the only sane and rational answer.

And yet.

And yet.

Owners do it time and time again, because they’re seeking profits, not value.

Profit-seeking is doing everything by yourself to keep costs down.

Value-seeking is focusing your time and effort on the most important, strategic activities only you can do.

Value-chasing delivers multiples of profits, builds a more sustainable, scalable and sought-after business, and makes it more enjoyable to own and lead.

So, here’s a little exercise for you.

Take your total potential earnings from the business (salary, dividends and benefits), and divide by the number of hours you work.

What’s the number?

Now, look at the work you’re doing.

Are you like my client was, effectively paying a massive premium for low wage jobs by doing them yourself?

If you are, but you want to have a valuable, sellable and sought-after business, then:

Step 1?is to fix that ASAP. Every hour you can free to work on the business rather than in the business will greatly improve your income per hour.

Step 2 is to set yourself a target income per hour and work towards that.

The equation is simple:

Target income per hours = (Available Dividends +salary +benefits) divided by your Hours Worked

Spoiler Alert:

You achieve your target number in step 2 by continuously working on step 1

I’ll say it again, focusing exclusively on the top line, and the profits, is a mistake.

You see, cutting your working hours from 60 to 40, increases your target income per hour by 50%.

The “yes, but” brigade will say that if they work less, their profits will drop.

And they’re right.

Unless…

You change how you work, how you lead and how you run your business.

To find out how, grab a copy of my book “The Business Exit Blueprint”.

If you implement what I teach in there, you’ll see your profits grow and your hours decline (if you so choose). And, as night follows day, follows night, your income per hours grows, and your business value grows with it.

Anyhow, grab the book HERE and get to work implementing the built for exit model, if, that is, you want more money, more fun and more freedom in your life and business.

Or don’t, and continue to under-value your time and worth.

Warmly,

Richard.

PS: Implementing what I teach in the book is also the antidote to having to close your business because you can’t find a buyer when you decide to exit. Get the book here: “The Business Exit Blueprint”