Here is an easy calculation to work out how you value an hour of your time… and if that value is less than what you pay your top employee!
Work out the number of hours you work each week… This includes time at home you spend doing administration and other tasks associated with the business other than basic contact time.
Now take the figure that you pay yourself each year as a salary….
Divide your salary by 52 and then by the number of hours in question one…
Just for fun here is an example:
Say you work 65 hours a week (which isn’t rare for a business owner right?) and you pay yourself $40,000 a year…
$40,000/52 = $769.23 a week/65 = $11.83
So your time is valued a little under $12 an hour! And what do you pay your top employee? Even worse if you work around 80 hours (again not rare for a business owner) that figure goes down to around $9.61 an hour!
So is that $12 an hour what you got into business for in the first place? Perhaps you are lucky and this figure is a lot higher for you… Or perhaps not so lucky and it is even lower. What would it mean to you to not only increase this figure but also have a lot more time doing the things you really enjoy? Like spending time with family or taking that holiday you have been dreaming about… Or being able to afford that holiday!
If you do the calculations and think your time is worth more than that, then do something about it… learn how Business Coaching in South Florida will work for you, contact John at johnlayzell@actioncoach.com or 305-899-9963 for a complimentary coaching session or diagnostic of your business.
Remember: In this life…you can always make more money but you can’t have more time!
