You already know that building and growing your business can be a difficult (though rewarding) experience. Your time and effort have helped grow your business, but by using both of these resources effectively, you will no doubt find that it is neither practical nor desirable to do all the work yourself once that you have reached a certain level of success. Outsourcing offers you a smart way to save time and money. But when you decide which tasks to cultivate, it's worth looking at how much you'll save by understanding your own hourly wage.
Calculation of Your Hourly Wage
"Now wait a minute," I hear you say. "I'm not new to everything, I'm an entrepreneur, I do not have an hourly wage." Of course you do! Every project you undertake, every task related to your job is reflected in your total weekly commitment to your business. Divide your total commitment in time by the amount of money your business earns in a week, and you get a small thumbnail of your hourly wage.
This number is not just what you do every hour, but the value of an hour you spend on a given task, including those that can be done faster and cheaper by specialists and experts. And it's a great measurement tool not only for your business but also where you want it to be.
Ask yourself: What is my current hourly wage? And do not stop there. What is your hourly wage target ? How much do you want to have your hourly wage ?
A Simple Example: Should I hire an accountant?
For years, I've been hesitant to hire an accountant for my business. I knew that my company was not a simple and direct type of business. We had funds for people, we had deferred payments, and the configuration of my employees was different. My books were complex.
So, rather than hire an accountant, I kept control of my books. The problem was that I spent a lot of time doing it, and when I did not have time because of other requests, I did not update my records. I needed to outsource this task. It turned out that not only did this make sense for my time management, but also for my business money.
How it works:
My effective hourly wage (at the time): $ 140 / hour
My targeted hourly wage (at the time): $ 250 / hour
Monthly Hours Spent on Books: 9 am
My Actual and Targeted Cost: $ 1,260 – $ 2,250 / month
This meant that any accountant whose services cost less than $ 1,260 was immediately an economy for my business. And as my hourly wage increased, so would the savings.
Finally, I found a high quality accountant for $ 250 a month. The time I released allowed me to focus on other income generating activities that had a direct impact on the increase in my effective hourly wage.
Time is really money
Let's face it: time is your most valuable asset as a business owner. Every hour that passes beside you on outsourcing tasks is an hour that you could invest in tasks better suited to your skills. Let's take a look at the real benefits of outsourcing based on your hourly wage:
Harnessing the Power of the 1440s
In his book, 15 Successful People Secrets Know About Time Management Author and entrepreneur Kevin Kruse encourages his readers to write "1440" on a piece of paper and to the highlight in their office. One thousand four hundred and forty minutes: that is what we are given every day. You can not pack more in the day, so you have to make sure that everyone counts and consider them in your plans. The money can be replaced, you can have fun, and the work can be done, but once your minutes are gone, they are gone.
Compare your salary to the cost of having someone who takes on the most tedious and low-level tasks. Outsourcing frees you to use your time smarter and put those minutes where they can be most beneficial to increase your hourly wage, grow your business and help you achieve your goals.
The value of your business can be measured on the clock
Outsourcing effectively can actually increase the value of your Internet business. It is true that online businesses are valued according to their income, but this value is absolutely affected by the efficiency of the business. Greater efficiency means lower costs, which means higher hourly wages for you.
And do not forget, entrepreneurs who are not looking to spend a lot of time on a business are likely to offer less money than they would have for an income generating a good income and requiring less practical work from the owner.
Rationalizing with specialists
Your business has a whole set of processes – billing, marketing, customer service, accounting – that must be accomplished. But that does not mean that you are the one who has to accomplish them.
As the owner and operator, you are the biggest cog in what should be a well-oiled machine. But all the cogs are not suitable for all tasks. If you can replace your competent but relatively inefficient work by the work of someone who lives to accomplish a given task at a reasonable cost, you are ahead of the game in terms of time and money. .
One of the greatest favors you can do for yourself and your business is to ban the idea that you, and only you, can do the job properly. Maybe it's your accounting, maybe it's your marketing, or maybe it's something as simple as managing your daily deposit. Whatever the case may be, chances are you will do better to outsource if this can be done cheaply and effectively by someone else. Understand your hourly wage, explore your options, and soon you too will be able to outsource your way to more time, more money, and a more valuable business.
Author : Mark Daoust is the founder and CEO of Quiet Light Brokerage, an internet trading brokerage firm advising entrepreneurs on the release of their e-commerce, SaaS, Amazon, and other web-based businesses. Mark is also the author of the recently published Ultimate Value Guide.