Very few people on my sales training can tell me exactly what level of income they are looking to achieve or even how much are they are worth per hour. You see, if you had a clear understanding of how much your time is worth per year you would get a whole new perspective on the importance of the actions you take.
My view on time management, activity planning and delegation took a dramatic upheaval when I went through an exercise I found in a book by Dan Kennedy called “Time Management for Entrepreneurs”. I guarantee that your view of your own personal worth will never be the same again either!
Are you productive all of the time?
I guarantee that you are not. At best you are actively productive one third of your working day. That is engaged in activities that are going to make you money as opposed to firefighting. If you think you are productive 1/3 of the time then use that number in the example to follow. Be honest as you are only cheating yourself if you don’t. The rest of the formula works on the basis that there are on average 220 working days per annum and this is our ‘money making days. If yours is less than this because of extended vacation or lifestyle aspirations then again be honest with yourself and reduce this number.
An example of the formula is:
Target Earnings Example For Someone wanting To Earn £50,000
|Base Target Earnings||£50,000|
|Divided By 220 days x 8 = 1,760 hours of work in a year||Divided By1,760|
|Base Hourly Number||£28.40|
|Times Productivity vs nonproductivity multiple||X 3|
|Your Time Is Worth Per Hour||£85.20 per hour.|
|Your Time is worth per minute (divide by 60)||£1.42|
|Base Target Earnings||£|
|Divided By 220 days x 8 = 1,760 hours of work in a year||Divided By|
|Base Hourly Number||£|
|Times Productivity vs nonproductivity multiple Use 3 or higher||X ( )|
|Your Time Is Worth Per Hour||£|
|Your Time is worth per minute (divide by 60)||£|
If your situation doesn’t lend itself to this way of calculation then make it work! For example take the total profitability of your business directly attributable to you and use that figure.
Hey, it might not be precise, but it’s a starting point that you can use to quickly evaluate what you are doing with your time.