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So it seems that I’m on a bit of a mission to help people understand what their next best investment in their business would be… Have a look at what 1000K gets you:
- a deposit for 1:1 coaching
- a group program ranging from 6 weeks to 12 months
- 1 year’s membership in about 3 communities @ $25/month or 1 @ $83/month
- 1 course @ $997 or 2 @ $497 each
- 10 courses or workshops @ $97 each or 5 @$197
Now compare that to:
- 4 hours of accounting services billed @ $250/hr***
- 10 hours of private Get-It-Done time with me
- 13.3 hours of graphic design work @ $75/hr***
- 20 hours of shared Get-It-Done time with me (2+ people)
- 20 hours of a Virtual Assistant’s time @ $50/hr or 40 hrs @ $25/hr***
- 33 hours of a Bookkeeper’s time @ $30/hour***
*** I did a quick search on these fees, which can vary based on location and skill level – please follow up with your own research
WHAT’S YOUR POINT, MARY?
I see A LOT of people willing to invest in the first five options listed above. We (yes, I include myself in this) don’t seem to hesitate to invest in coaching or courses (strategy and skills.) And don’t get me wrong – these are an important part of the equation. But in order to get consistent results in your business, you need to be able to take your ideas and move them past a plan, and into a place of taking action. You need to implement and get things done! (I have a new video on my homepage that explains this – you can watch it here.) And THAT’S why it’s so important to understand how you allocate your time AND why I believe you’ll want to invest in support. To help illustrate my point, let’s calculate your actual hourly wage – the amount of money you actually make per hour – not the amount you bill your clients or use to calculate fees. Take the amount of money that you typically earn in a month after expenses, and divide that by the actual number of hours you work – not just with clients – I mean every hour you spend on your business. If you work from 9-5 every day and take an hour lunch, then that’s 7 hours. If you work again at night for a couple of hours, then that makes 9 hours a day. Times that by the number of days you work in a month. (Don’t forget to include weekends if you do work on Saturday and Sunday!) Here’s an example: Let’s say Betty earns $4000 per month after expenses, and she spends an average of 160 hrs/month on her business. $4000 / 160 hrs = $25.00/hr Her actual hourly wage is $25.00.
NOW WHAT HAPPENS IF BETTY HIRES WILMA?
Let’s see what happens if Betty hires Wilma, a Virtual Assistant.
Wilma takes over some key administrative tasks for Betty at 10 hours per month at $30/hour.
It costs Betty $300/month.
But because Wilma is efficient and effective at these tasks, it’s entirely possible that Betty could work about 30 hours less per month (because let’s face it, Betty, if you were great at this, you’d be a VA yourself!)
$4000 – $300 = $3700/month
160 hrs – 30 hrs = 130 hrs/month
$3700 / 130 hrs = $28.50/hr
Using the same formula, Betty would now earn about $28.50/hour AND have 10 hours of free time per month.
If Betty worked those 10 hours to bring in an additional $1000 a month, her hourly wage would look like this:
$4000 – $300 + $1000 = $4700
$4700 / 160 hrs = $29.40
Now, it’s quite possible that having Wilma’s help naturally brings in more cash flow for Betty, and she doesn’t have to work those extra 10 hours.
In which case, it would work out like this:
$4000 – $300 + $1000 = $4700
$4700 / (160 – 130 hrs) = $36.15/hr + 10 free hours/month
In all scenarios, Betty’s hourly wage is more with Wilma on board than without.
See how that works?
Next week, we’ll explore how hiring me can impact your results.
NOW IT’S TIME TO RUN YOUR NUMBERS
You can use my Time Tracker Sheets to understand how you actually spend your time. Make notes in the Comments section about who could potentially do this for you, and do it better (ie. more efficiently and effectively.) The who doesn’t have to be a person – it can be the type of provider.
Then, pull out a pen and paper and a calculator.
Run your numbers and calculate your real hourly wage. (I admit I was shocked when I first did this exercise.)
I’d love to hear your thoughts on all this, so send a note to email@example.com, and let me know how it landed for you!