“Remember that time is money”
-Benjamin Franklin
We all know and understand that time is money, but to what extent do you really apply in your business?
“How much is your time worth?” You may tell me “it is worth $300 per hour because that is what I charge my clients.” But when it comes to typing a letter that your secretary can do for you, probably it is not worth $300 an hour any more. And it can become more complicated, for example, do you really know how much the value of your time is when you are planning a major marketing campaign? My point here is how much your time worth depends on what activities your time is spent on.
It is critical to understand that your time is more valuable when you do certain tasks and less valuable when you do others. Focusing on those tasks that can maximize the value of your time will boost your bottom line. On the other word, you can make more money by being selective of the business tasks you do. To be selective, first, you should know how to select. When you define and allot tasks, analyze each task and put it in the following three categories:
- First, tasks that do not need to be done at all
- Second, tasks that can be done by somebody else
- Third, tasks that only you can do
Tasks in the first category are those that contribute nothing or little to your profit. The time you spend on those is worth nothing or near to zero. Always drop those unnecessary work altogether. Carefully analyze each task including your daily routines, you will find plenty of those.
For the tasks in second category, always think about the possibility of delegating them to your employees or outsourcing them to outside service provider. If you can find someone else to do it for lower cost, the value of your time will be enhanced.
Tasks in the third category normally are those that contribute the most to the success of your business. These are the tasks that are important and cannot be delegated, for example, finding the right person and giving them the right work. Focusing on these tasks will maximize the value of your time.
Time is a business owner’s most precious resource, because it is the only one that is truly scarce. Use it wisely.
