Learn to calculate the real value of your time in this week’s Business Tap #16 by Bob Keplinger.
The single highest producing activity that any business owner can perform is generating sales. Yet we may be shocked to learn how much money we throw away by performing menial tasks.
In this week’s Business Tap #16 video, I share how to calculate your monetary hourly value. We all have the same amount of time but as business owners, sometimes we waste time by “Stepping over dollars to pick up dimes.” We may perform tasks that we simply enjoy or, more times than not, perform menial tasks that we could (and should) delegate. We tell ourselves that it’s quicker just to do it ourselves, or that no one else can do it as well as we can. Here’s the truth. If we invest in training a team member then we are free to work on generating revenue. We need to learn to recognize when we are being drawn away from what should be our highest priority, generating sales.
After watching this video and crunching just a few numbers you will most likely see how much potential revenue you’ve lost. By knowing your numbers you can calculate the real value of your time, and it should help keep you on track to only perform activities that will perpetuate growth in your business.
Here’s the Formula :
For last month, divide your Average Dollar Sale, by the total number of hours worked. The answer is your hourly value.
To calculate your Average Dollar Sale, add up all of your earned transactions during last month to get a Total dollar amount. Divide that Total dollar amount by the total number of transactions.
The founder of ActionCOACH, Brad Sugars, says “Saving yourself a wage can cost you a fortune.” You may be surprised to find out that by simply eliminating menial tasks from your day, you are able to increase sales. Now that you have a number, you can develop goals and KPI’s (key performance indicators) that you can measure in order to increase your sales. Delegate or outsource those tasks that are not making you money.
What would you do with more revenue in your business? Give yourself a raise? Take the family on vacation? Hire more team members? Exactly, choices are good to have. Stay aware of where you are spending your time to stay on track.
About Bob Keplinger:
Bob Keplinger is passionate about leadership and how understanding the importance of this responsibility as it impacts both the personal and professional aspects of our everyday life. He understands that we are all working to maintain the appropriate balance between the responsibilities to our internal and external customers along with having a fulfilling lifestyle while away from work.
Together, you and Bob Keplinger will accomplish new heights and achieve greater success in your business; GUARANTEED!
- Schedule a complimentary coaching call
- Attend our next free workshop in The Woodlands Aug 17, 2016 9:30am – 12:00pm
- Sign up for our free weekly Business Taps videos delivered to your inbox.