Friday, October 10, 2008

Don't Waste Time


Time is worth more than money. More specifically, YOUR time (as a business builder) is worth more than money. Hands down!

People often focus only on saving money when they should be thinking about saving TIME.

Each thing I do while working IN my business I say to myself, "How can I do this faster? Can I pay someone else to do this so I can put my time on more important things?" I don't think for one second, "How can I do this cheaper?" I think, if I spend money on this product, how much time will it save and how much will that time cost me? If I hire someone to wash this wall, how much time does that save me?"

Why?

Because once your business has grown, YOU will not be doing all the jobs you think you are saving money on. In other words, at some point you will be having to pay someone for THEIR TIME. This can vary according to the skill. Let's look at how much skill versus time cost and then think if you are really saving money.

Rates in my city (Windsor, ON Canada)
1) General Labour $8 to 10/hr
2) Skilled (construction) $15 to 20/hr
3) Professional Services $30 to $100/hr
4) Exec, Visionary $250 to 500/hr

Ok, let's say you are a #4 doing the work of a #1. In eight hours you are actually losing $3,920 (8X500=$4,000 minus 8X10 = $80)

Now as regards to products saving time. I use a spinner to wash paint rollers. It saves about 10 minutes of cleaning and cost me $20. Let's say it has saved me 100 hours over the life of the tool. That tool will have saved me $180 of labour I would have paid someone to wash rollers the old fashion way. The same could be said about buying a photocopier instead of running to a store to make copies.

Always consider time; do not just focus on money.

And always remember, each time you are trying to save money by doing something yourself, it is likely costing you 100 times more than you thought. Your time is worth a fortune as the business builder!

2 comments:

inoprints said...

Hello,

Found your blog from the richdad forums. I must say, I am in the same boat. I just got through my first year and learned so much - especially time management and delegation. I run a printing business in Chicago - www.inoprints.com and I will be frequently visiting your blog for inspiration and your lessons.

Regards,
Jovim
www.inoprints.com

BasicRiches said...

Thanks, Jovim. Lessons are sometimes really hard and expensive and I notice it doesn't get any easier, the impact just becomes more encompassing of your life/business.

Let everyone know about the blog and I will continue.