When thinking about a project that needs to be done, how often have you said, “I am going to just do it myself, that way it doesn’t cost me anything”? To be honest, we have all said it at some point and yes, there are times when doing it ourselves is the way to go. Yet, we need to always be aware that although something may not cost us money, there is time involved, and to be aware that time is not only a valuable currency, but it is a currency in which once used, you can’t get it back (unlike money, as more money can be earned).
Understanding that your time has value, and more importantly, knowing its actual value, is so very important to you and your business. Because, until you understand the actual value of your time, you are making quite a few business decisions without a very important piece of information – and thus there is no way you can properly allocate your time to produce the best return on its investment.
For example, when evaluating whether a wedding show is worth doing, I first breakdown the costs that go into a show – including the cost of my time, which usually includes the hours to sign up and get the booth content and materials prepped for the show, the show setup, the actual show, and then the tear-down and show follow-up. Once I know that cost, plus my other physical show costs, I can properly evaluate whether the show will be worth it or are there other things I could be doing with my time that will produce better results. Obviously, there may be other factors that I need to weigh into the equation to make the final decision, however, at least I have the entire, and proper, picture to evaluate from.
The above example focuses on marketing but knowing the value of your time is important in all aspects of your business including:
• Pricing – helps you determine how much you need to charge for your services.
• Daily Processes – helps you determine which daily processes need to be adjusted, and which can be completely removed.
• Task Allocation – helps you determine which business tasks you should do yourself, which you should outsource, and which you shouldn’t do at all.
And maybe the most important factor of understanding the value of your time is sanity, since some things just aren’t worth it and sometimes we should just need to take the time off and enjoy it.
