How Much is Your Time Worth?

What would your hourly rate be? £6ph? £8ph? Maybe you’d be charging more like £15 an hour or more. How much is an hour of your time worth to YOUR business? If you take into account the amount of marketing you could do – it could be £25 per hour or £50 per hour or more.

Okay then – if you hired a virtual assistant to work for you, 1 day a week for 5 hours, how much would that bill be? Based on the minimum rate above of £6 per hour and for 5 hours each week – you’d be paying £120 a month. Quite an amount!

Last night, when I was laying in bed and a gazilion things were running through my mind. I started to think about my day.
Now normally I am pretty focused but yesterday was a day when I seemed to be online all day and accomplish nothing. The things I needed to do were things I didn’t feel like doing and some other things needed a little more research, so rather than just do it – I found myself surfing, learning more stuff and socilaizing!
I’m not going to beat myself up over it because as I said, I’m generally quite focused and I have a pretty good system that I use – BUT how many people do this in their buisness EVERY DAY?

I probably lost 2 hrs of time yesterday – maybe more, just doing stuff that was of no benefit to my business at all.

If you are completely honest with yourself, how many hours do you think that you waste each day? What does it work out on average? An hour? More?

Let’s assume that the average WAHM wastes around an hour each day online, either by dealing with unecessary emails, distractions on Facebook & Twitter and probably numerous other widgets, aps and paraphernalia.

Now let’s look at the knock on effect of that in a monetary way:-

If You worked that extra hour each day on marketing, SEO, link building etc That would have a huge knock on effect to your business. So that would mean your revenue would shoot up along with your earnings – so you could be charging £25 an hour upwards.

So over a 4 wk period @ 20hrs that would = £500

Over a 52 wk period, it would = £6500

Would you like your business to generate an extra £6500? Hmmm…

Okay, let’s look at it that you were paying the minimum to a VA (it would have to be an overseas VA for a £6 rate). It would cost you £1440 a year.

So what is my point?

Well, if I said to you “Why don’t you hire a VA for 5 hrs each week to work on the tasks you don’t want to do, so that you can focus on the tasks that build revenue for your company” you would probably say “I can’t afford it”

So if I then said “Okay, well how about having someone work those 5 hours each week for no charge and it will generate an extra £6000 a year or more” you would likely say ‘Yes Please’

So, to round up – when you are a small business you need to look at the long term picture. The hour of time you waste each day (based on you working on your business 5 days a week, rather than 7, like most entrepreneurs) is equal to 260 hours a year and at £25 that’s £6500.

And on the flip side, if you do outsource as soon as you poss can – then it will free you up to work on the stuff that creates more revenue. So the cost is completely justifiable.

Until you get to that point, just tell yourself that for every day you waste an hour doing stuff that isn’t important – you lose another chunk of that extra £6000 revenue you could be potentially earning.

Whilst I have based these figures on what I consider to be the minimum the reality is that it could work out to be so much more. Just think how much marketing and promotion you could do over the space of 260 hrs? How much more revenue you could create..

No related posts.

Related posts brought to you by Yet Another Related Posts Plugin.