What is Your Time Worth?
Time is ‘hands-down’ the most important asset you have—and unlike money, once you’ve spent it, you can’t earn any more. That’s why it’s so important to make the most of your 24 hours, especially as a trade business owner.
So, how can you become more productive and profitable, without working insane hours and sacrificing your personal life? Read on for a few steps on how to start managing your time like a successful trade business owner…
STEP 1: Discover how much your time is worth
The first step to making the most of your time, is to grasp what your hourly rate is worth.
This is a quick and simple exercise to help you get a gauge.
Let me ask you this one simple question:
How much can you earn in an hour of work on the tools?
Some tradies would reply with $150 for the hour, $1500 for the hour, or more.
(This is NOT a formula for determining your rates, that’s a conversation for another time…. But it can be used as a gauge)
We all have our own answer for this question. What’s yours?
Let’s say $150 as an example.
Now, let’s find out if you’re spending every hour of every day on $150 activities.
STEP 2: Take an honest assessment of the TYPE of work you do
Now, think about the many ‘hats’ you wear when you work on your business.
One minute you’re invoicing, the next your working on the tools, then you switch to data entry, filing papers, speaking with customers or meeting with accountant to review your business.
Are they core business tasks, or business-related tasks?
(Core business tasks are those directly related to growing the business and driving it forward, like networking for new clients, strategically planning your marketing, etc.
Business-related tasks are those that support your core activities, like invoicing, data entry, etc.)
As the trade business owner it is important that you spend time working ON your business by focusing on core business tasks—not IN it (by overwhelming yourself with business-related tasks).
Think about it: If your business doesn’t run unless you’re managing it all, all you’ve done is literally bought yourself a JOB.
And the truth is, it’s really hard to operate a successful business this way. Quite a wake-up call isn’t it?
I challenge you to track your time for a full week and see the results. It could be VERY enlightening!
STEP 3: Delegate your tasks
You’re the boss, right? —so let someone else do the administrative tasks (those business-related tasks), so you can concentrate on developing the strategies that will make you more money.
Put it this way, if you are worth $150 an hour, then what are you doing now that you can employ someone for less to do for you?
Let me share an example: Do you clean your own house? Could you employ someone for less than $150 an hour that could do a better job than you?
Yes, this home chore DOES take up valuable time too…
The more you learn to let go and delegate to other people, the more you can focus on your REAL job: those core business activities.
Let’s go back to that hourly worth example in step 1…
If your hourly worth is $150 per hour and you pay someone $55 per hour for bookkeeping (as an example), and use that hour instead to generate revenue for your business, you’ve just made a leap in your business—and much faster than if you had tried to handle everything by yourself.
Or perhaps adopting some form of technology will get the job done too. Doesn’t have to be a human that manages the task. Food for thought…
Stop trying to do everything yourself and start valuing your time for what it’s worth. Then work out the best person for the job and delegate.
You can do this!
- Join our Kick-Ass Tradies Facebook Group, for access to trade business specific conversations, tips and resources, plus a like-minded community of tradies.
- Book a 15-minute Game Plan Call with Andy, owner of Dr. DRiP plumbing and co-founder of Lifestyle Tradie, to clarify your priorities and get clear action steps.