If you think that paying a professional service such as Action Business to take care of your administration and accounts needs and overflow is too expensive, then take 2 minutes from your busy schedule to calculate the real value of your time.
So how much is Your time REALLY worth?
How days a week on average do you work? A __________
How hours a day on average do you work? B ________________
How many weeks in a year do you actually work (delete vacations & holidays) C ________________
How much money do your want to earn in your business in the next 12 months? D ________________
Now calculate the value of your time:
A ______________ X B______________ X C________________ = E ___________________ hours per year
D _________________ Divide By E ___________________ = $ ______________________ per hour
Consider that this is the amount per hour you must generate each and every working hour to achieve your desired annual income.
Hmmm…… but what about all those non productive hours – like when you are personally doing your bookwork, taking care of your administration and payroll requirements, not to mention planning and designing your advertising and website materials that will help you get to this level of income??
Lets do that sum again – Use our Non Sell Hours Evaluator below (or download it here Non-Productive Hours Evaluator) to calculate on average how many hours you spend each week working on non income generating tasks within your business. Calculate the non-productive hours per week and re-calculate using the following:
E (from above) __________ – F (from the Evaluator) = I ______________ Actual Income Generating Hours / Year
D _________________ Divide By I ___________________ = $ ______________________ Per Hour
This is closer to the real amount you need to generate each and every working hour to achieve your desired annual income! Have a play with the numbers. The result can be quite shocking!
As business owners and managers and indeed as human beings, TIME is our most precious commodity. While small business owners often believe they are cash strapped, the reason for this is not necessarily a lack of available business. Frequently, the reason is a lack of time and therfore proactive focus on the revenue earning and increasing functions of their business.
In truth, we can really only utilise our own and our business’ full potential when we allow others to assist us with the tasks they are faster at and better equipped to handle.
Outsourcing these chores gives us back the time we need to focus on the income increasing and generating functions of the business – business planning & development, increasing our client base, servicing our clients and making money!
Consider the following:
- Is the Evaluator I wrote fully comprehensive? If not. your hourly $$ generation rate is still understated!
- Review the non-income generating list of jobs you do – Are these tasks REALLY worth the hourly rate you calculated? Are they worth the time stress and frustration you are sacrificing on them? Anything you rated with a C, D, 3 or 4 you should consider outsourcing.
- Would it be more cost efficient to pay someone else significantly less than my hourly worth to do a similar or better quality job – and more quickly?
Though the answer to the above is YES! For so many great reasons – The solution is not necessarily hiring someone directly into your business – here is why -
Once completed – look at all the items you marked as a 2 – Slow & Time Consuming and 4 – Hopeless, Dont Know Where to Start and B – Dont Like It But I Do It, C – Hate It & Procrastinate as Much as I Can & D – Its Still On My ToDo List.
Click here to download our Non-Productive Hours Evaluator Or click here to download the Whats the True Cost of Your Time as a printable PDF
These are the items you need to consider outsourcing to a trained professional who can do them for you in a fraction of the time it would take you to do it yourself or help you learn to do them better for yourself.
Contact Susan at Action Business for an obligation-free conversation and quotation about getting cost effective professional administration & accounts assistance into your business.