What Is Your Time Worth?
There are many different definitions of time. Time can be broken down many ways. The value of time varies considerably from person to person and depends upon the purpose of the journey, but can generally be divided into two sets of valuations: working time and non-working time. This division is necessary because the value of working time (i.e. time spent on activities in the course of work) is calculated differently from the value of non-working time (i.e. time spent on activities outside work). This article will be discussing working time since 90% of us go to work and have a job!
By focusing on the reasons why the business was started in the first place and the goals that a person sets forth for the business, the time question can be easily answered. One question that every small business owner or start up business asks themselves everyday is "Why should I hire someone to do a project when I am able and capable to do it myself?" A person or business owner must be able evaluate themselves and come to a conclusion on what the strongest qualities are that they possess. After these qualities are established, can the person answer this question.."Are they spending more time outside of these strong qualities that they possess rather than focusing on what they are good at? Focusing on a person's business includes deciding how much their time is worth. But, how does a person put a value on their time? How much is each hour of each day worth, especially when that person is doing projects that are not generating revenue or increasing to their customer base? Here is a great way to value what a person's time is worth:
1. You charge $75 per hour for your services/time. You spend a total of 5 hours trying to catch up on your correspondence…entering information into a database, typing and re-typing your letters and preparing them to be mailed.
2. $75/hr X 5 hours = $375.00 of your valuable time and profit
If it would cost you less to outsource, why not do it? Why not allow a professional to handle some of your tasks leaving you with more time to generate revenue? For an example:
3. $25/hr (sample cost to outsource administrative tasks) X 5 hours = $125.00
4. $375 - $125 = $250 + the $ of the contract you signed while a professional took care of the non-revenue generating tasks.
Although you are spending some valuable earned money, you are freeing up much more time to be able to concentrate on the processes that will generate more revenue for your business!
Outsourcing to gain time is happening in the new age of business. People and businesses are getting more and more specialized each and everyday. By outsourcing, a person can free up time to concentrate on the things that they are great at. In return, that person gets a better product or service in return by sending their duties/services out to a person that specializes in that area. This is a win win situation for everyone and it is the basis of how businesses can help each other grow at a significantly quicker rate. So my question to you is.... "What's your time worth!"
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