What is an entrepreneur's time worth?
- By Vicki Wusche -
- Apr 27, 2012
Having a thriving business can be great. However sometimes as an entrepreneur you spend so much time working in the business that you have no time to work on the business, here’s a guest blog on the worth of your time…
I was talking to a client about their business - they were proud to tell me how busy they were - in fact they worked 40 hours a week. They charged a healthy hourly rate but they were exhausted. So busy working in the business that they had no time to work on the business!
It’s funny how the same messages appear in your life over and over? I have been so busy this year - what a great experience so many opportunities from my book launch to speaking engagements, coaching clients, mentees and people wanting me to build their portfolios for them. Yet I am already quite tired …. Thank goodness for the Easter weekend and wonderful May bank holidays – I love May for that reason.
I believe you start to “notice” these messages or events because deep down this is something you need to pay attention to. Your subconscious is filtering through your life and hoping to get your attention!
We can understand the concept of leveraging money - so we make our money work for us - but if you don't leverage your time as well then you will be rich but not have the time to enjoy it. If you just leverage your time you will have plenty of time but be poor (as you will have spent money on staff but not on income generation).
So you have to do both…
The challenge is recognising what your time is worth…
There are two easy examples – first when booking a train the prices change according to the time of day and the length of the journey. Would you book a slower train in order to save money? If you do you need to add into the equation the cost of your time per hour … as the extra time you take in reaching your destination is also a cost of the travel experience. I have to say that on occasion when I go to Manchester I will also book first class as I worked out that my free drinks and service from Virgin was worth the small extra charge and convenience!
Another example is in your business. When I spoke to my client about their business model - it was obvious that there was a lot of demand for the service being offered. It was not a business where extra staff could be easily employed to deliver the service as well so we had to think of another way.
We talked about the implications of raising the price of their service. They were scared that they would lose business. By using "the maths" I showed them that increasing their prices by just 14% or £10 they could earn the same money but work 5 hours a week less (only 85% of the time).
They were already at maximum time and client numbers, so now they could increase the prices for new clients and gradually increase the price for existing clients and even offer existing clients the opportunity to buy a programme to secure a lower price.
With the extra time the client gained they could start to plan how to expand their obviously successful business - maybe more staff, or maybe a partner - but now they had time to think and to make decisions.
Have you looked at how you use your time - are you making the most of it - are you so far in your business that you can't see the opportunities for growth?
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