Are you investing your time wisely?

By social 1 year ago
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Time is money.
We’ve all heard this one.
But as I speak to budding entrepreneurs across the continent I hear statements like these.
“It’s okay. I will just do it all myself – it’s faster.”
“I met with so-and-so. No, it’s not related to my business but it could be big!”

“I couldn’t make that meeting because I had to drop my colleague somewhere.”
And when I hear statements like that, I have a noticeable physical startle that makes me want to check my watch and wallet!
Let me explain
Money-transform-in-hourglass ← i wish it was turned around so the sand is flowing to become money.
Let me explain.
I see time is equated to money in three ways:

  • Converting on the opportunity

In order to convert an idea … an opportunity … into something profitable, it requires your time. Now this conversion could be a sale, it could be developing your new product, it could be scaling your business, and so forth. If someone else owned your company, they would in fact be paying you for that time. But because it is your company, all that time is going into your company’s equity. This is why it’s called sweat equity. And so this time you are putting in can actually be valued in terms of money and return on your time investment.

  • The opportunity cost

Secondly, if you were not focused on this business, you could most likely be employed elsewhere. And if that is the case, you are forfeiting that compensation to focus on building this business. That too is money you can attribute to the time you are instead spending on the business.

  1. What is the team’s efficiency?

And thirdly, I would not be surprised at all if you said that X for your company would not get done if you weren’t there to make sure it got done. So part of your time has to go into making sure that the others you rely upon have everything they need to be efficient and effective.

In other words, if you could have spent 15 minutes to make sure a team is 25% more effective or efficient in their task … and you didn’t, then you have lost money that is equivalent to 25% times the team’s capacity for that task duration.

Time = Sweat equity + Opportunity Cost + Increase in team efficiency
All of that adds up!
So,
instead of:
“It’s okay. I will just do it all myself – it’s better.”
I would like to hear:

“I will have my staff do this. It might take longer but it will free up a good chunk of my time which I will use to instruct and supervise s/he, so I can instead work on this thing which is a bigger return.”
instead of:
“I met with so-and-so. No, it’s not related to my business but it could be big!”

I would like to hear:

“Yes, so-and-so asked for a meeting and while it sounded interesting, I turned down the meeting because it isn’t related to my focus at the moment.”
and,
instead of:
“I couldn’t make that meeting because I had to drop my colleague somewhere.
I would like to hear:
“I made the meeting 15 minutes early. I thought about how much an hour of my time could generate and realised it’s better I give Leslie some coins for a cabbie instead.”

So next time you have a choice on where to put your time, I hope you give a second thought to how well you are investing that money.

Category:
  Productivity
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