Valuing your Time
One of the biggest traps for small business owners is not valuing their time enough and the consequence of this is that owner managers frequently consume irreplaceable time and energy on incidental tasks instead of working on the business. They fall into the trap of being more concerned about saving the pennies rather than earning the pounds. Valuing time is an essential part of the process of deciding which business processes can and should be delegated in order to allow the entrepreneur time to grow the business.
It is my experience that very few owner managers value their time enough. The reasons for this are two-fold. The first is simply because many have not thought about it. The second is that frequently the entrepreneur is unwilling to acknowledge that the sum of the individual tasks that will make their individual businesses unique and successful are worth more than the collective parts. It’s the value of the how and why they operate their business. Placing a low value on time is a contradiction of their expectation of the business.
The easiest and most relevant way to value your time is to measure the amount of time you wish to invest against the return you expect from it. In other words divide what you wish to earn by the hours you want to work; so for example, if your eventual goal is to run an enterprise that returns £100k a year and provides you with six weeks holiday for no more than a 35 hour week then you should be valuing your time at about £65 per hour (allowing for bank holidays and so on).
Once you have valued your time and can understand why it has such a value you will use it sparingly, and only where and when it is essential to grow your business.
The value of your time is not dependant on your training or your experience but the anticipated earnings you expect in return for applying them to your enterprise.
Please do not hesitate to contact me if you would like to find out more about the importance of valuing your time.