We have heard the adage “Time is Money” – its neither a bad idea nor a crude definition, what it really does is to emphasize the importance of time management, for anyone and specially the entrepreneur who is keen on establishing a routine in business, while trying to practise the skillful art of delegating business chores to others.
When it comes to time management, the entrepreneur is no different from anyone else, salesmen, full-time or part-time workmen/women, or even those who work on a commission basis, after all it is his/her own time to spend effectively or wastefully. When the salaried employee whose stake is minimal in the business, can calculate his/her earning rate per hour, it is all the more relevant for the entrepreneur businessman, to be able to reckon his /her earning rate in dollars.
Normally business owners have to engage in a number of critical activities, which include planning, organizing co-coordinating and reviewing, directly and through on-line systems, which often extends working from a few hours to 18 or 20 hours per day except perhaps sleeping time. What really gets misplaced or pushed to the background is how best the time is spent, or how well he/she practices the delicate art of time management.
Money value: It becomes imperative to devise a way of knowing whether the time spent is worth the value/return. The easiest and simplest method seems to be a money value for each hour spent in dollars or cents. Somewhere, one has to make a beginning, and start with the total money earned in a period, week/month and divide by the number of hours worked – whether drawing up a plan, talking to customers, supervising or checking progress directly or through systems and/or reports, or the sum total of whatever done for the business.
The first Move: The result is a start-up figure of ‘X’ dollars or cents per hour, what the figure reads -small, big, unreasonable, attractive, – is immaterial but what really counts is the first step of an exercise in the right direction, to be able to estimate how one functions, or delegates his/her business chores. The ultimate thing in business is how much can the returns be maximized for a minimum effort – and that obviously includes the value of time spent.
Once that figure in dollars or cents is calculated, the chances are, that it is abysmally low or not even watching what a salaried person earns within the business. The entrepreneur now has all the data before him and only needs to set his/her goals to take it higher, in steps and match with supporting actions, on managing routines or delegating the right things to the right persons.
Hidden Benefits: The least this exercise can do is to throw up some data on how one’s time is being spent, wasteful or useful, but once the figure is known in money terms, it is easier to take corrective steps, in many areas of the business which costs money.
Knowledge is power: Further the business owner becomes more equipped with the knowledge of the actual value of his/her contribution and what or where one has to change in his/her routine, or delegation to others, such that the business operates more profitably. Ultimately it leads to better time management, optimal practices in delegating business activities to others, such that more efficient routines get established, leading to profitable businesses all the way.