What is 1 Hour of Your Time Worth?

What is 1 Hour of Your Time Worth?

Business coaches and seminars will tell you that you should value your time. The best ones will even teach you how to do that. There are two ways, decide how much you want to make each year or use your current salary. With that number you calculate your hourly rate based on this formula:

Your salary*/48 weeks (assuming 4 weeks vacation) / 40 hours a week = your hourly rate

*if you own or have shares in your business, you need to add the value of that to your salary, so that your hourly activity is increasing the value of the business as well

Here are the two examples to calculate your hourly rate:

A.) Your Actual Salary

$125,000 / 48 weeks / 40 hour = $65 hourly rate

Any tasks that are you are doing that can be outsourced for less than $65/hr should be handed off to someone else. That could include bookkeeping, HR tasks, cold calling, social media management, etc.

B.) Decide how much money you want to make per year

Your desired salary = $360,000

$180,000 / 48 weeks / 40 hours a week = $93.75 hourly rate

This one can be tricky. If you are just starting your business and bootstrapping it, chances are you are involved in every aspect. You need to be, you need to learn as much as you can to find what your strengths and weaknesses are. You also need to discover what strategies are generating income. (See our goal tracking worksheet to really track this.)

Once you have learned your business and you become profitable, start handing off tasks that drain your time and energy so you can focus on the below tasks. If you are taking out a business loan or bringing on a VC, you can start to build your team and outsource faster.

What tasks should I be doing?

You should be doing the tasks that generate 80% of your revenue, build your team and cost more than your hourly rate. Usually, those tasks are:

  • Meeting with clients
  • Creating video or audio content
  • Vision planning/goal setting
  • Employee mentoring
  • Networking or coffees

Some of these tasks should not be outsourced simply because it keeps you as the face of your business. If you grew it from the ground up that means your clients like dealing with you, so keep at the forefront. If you no longer want to be the fore front you should be creating a succession plan to exit your business in the future.

 

Conclusion:

Calculating your hourly rate gives you a time frame of when to outsource tasks. Make a list of all of the tasks you are completing in your business with an hourly rate beside them which is the cost it will be to outsource it or to hire someone on. Once you hit the number, get it off your plate.

What are the next tasks you need to get off your plate?

Derek Burbidge, Manager of Sales & Marketing
VEA

Our Top 3 Business Books

Our Top 3 Business Books

If you are in business and have a community of people around you who appreciate business and personal development, chances are you are recommended books all the time. The golden rule someone taught me is to not buy a book until it has been recommended three times. That advice has saved me money and time trying to keep up with all of the recommendations.

With that said, below are the top recommended books from three of VEA’s team:

Lanna, Co-Founder & CEO

Dare to Lead – Brené Brown

How do you cultivate braver, more daring leaders, and how do you embed the value of courage in your culture? 

In this new book, Brown uses research, stories, and examples to answer these questions in the no-BS style that millions of readers have come to expect and love.

Brown writes, “One of the most important findings of my career is that daring leadership is a collection of four skill sets that are 100 percent teachable, observable, and measurable. It’s learning and unlearning that requires brave work, tough conversations, and showing up with your whole heart. Easy? No. Because choosing courage over comfort is not always our default. Worth it? Always. We want to be brave with our lives and our work. It’s why we’re here.”

Nick, Co-Founder & President

One of the most inspiring and impactful books ever written, The 7 Habits of Highly Effective People has captivated readers for 25 years. It has transformed the lives of presidents and CEO’s, educators and parents—in short, millions of people of all ages and occupations across the world. This twenty-fifth anniversary edition of Stephen Covey’s cherished classic commemorates his timeless wisdom, and encourages us to live a life of great and enduring purpose.

Derek, Manager of Sales & Marketing

“The Slight Edge” is a way of thinking, a way of processing information that enables you to make the daily choices that will lead you to the success and happiness you desire. Learn why some people make dream after dream come true, while others just continue dreaming and spend their lives building dreams for someone else. It s not just another self-help motivation tool of methods you must learn in order to travel the path to success. It shows you how to create powerful results from the simple daily activities of your life, by using tools that are already within you.

Conclusion:

All three books have personally impacted our lives in many ways and we hope they impact your life as well. We will be doing a few more of these and we are always reading, so what is your top business book? Comment below.

– Derek Burbidge, Manager of Sales & Marketing
VEA

Check out other helpful blog posts from VEA:
– What is 1 Hour of Your Time Worth?
– Why Building Your Network Will Transform Your Business
– The Slow Season Double Down

*As an Amazon Associate, VEA earns from qualifying purchases.