Time is one of the most important elements to your business, after all, in the words of Benjamin Franklin circa early 1700’s – time is money; but what is the real value to your business of that hour?
Your £/hour contribution is central to the success or failure of your entire business. Why is this and what do we even mean by ‘value per hour’?
How can you calculate yours? This might help …
The average £/hr is pretty meaningless unless we trend the long-term improvement, BUT a great start point is to consider 2 activities you regularly do at work.
Activity 1 – you perceive as highly skilled and you enjoy – top right on the grid
Activity 2 – you don’t enjoy so much and you consider it lower skilled – bottom left on the grid
Now calculate the whole life value (cost saving / revenue contribution / repeated time saving / etc) of Activity 1
e.g. what was the last thing you sold? What was the profit contribution of that sale to your business over its whole life and how many hours of your time did it take to make the sale?
Profit in £ / hours taken = your real value per hour for Activity 1
Now do the same for Activity 2 – chances are the contribution was zero or much lower than Activity 1.
So, why do so many business owners we meet spend so much time doing low fun and low skill activities and costing their business’ a fortune in non-contributive activity? Weird.
Our suggestion – STOP IT, NOW! If it’s not high fun and not high skill then get someone else to do it.
If you would like any help on how to increase your value per hour please leave a comment and we will be in touch. Best of Luck.
