You are valuable, there is no doubt about that. But do you know that value?

What is value?

This is a simple concept. Your value is the amount in Rands (or other currency) you can earn per hour (week/month etc). The amount is based on what you can expect to earn from a third party, so not family or connected persons. This is most useful when it is calculated per hour.

“Know your worth and then add tax” – Anon

Who can do this and WHAT’S the POINT?

Commonly, this is not actually calculated that often. This is useful for business owners or employees that earn an irregular income such as commission.

The point of calculating your value is to make sure you are spending your time wisely. We all could do with more time, no one can deny that. Working “smarter” for longer rather than “harder” is the answer to this. Another saying is “work on your business as well as in your business”.

Let’s calculate it and then we’ll use an example to explain it.

Step 1: Work out what you want to earn per month (e.g. R30 000)

Step 2: How many hours do you work per month including late nights and weekends? (e.g. 150)

Step 3: The amount per hour or your “value” is R200 per hour

So WHAT?

Know your valueWell, this is where you can save time and money. You do not want to work 150 hours a month but rather 120 hours. So what can you cut out to save the 30 hours?

The immediate answer is your administrative duties, more specifically your accounting function. Let’s say you spend 15 hours a month (R3 000) trying to sort this out every month, another 10 hours (R2 000) on paperwork, organising your business life and 10 hours (R2 000) on marketing, networking or advertising a month.

To outsource* these functions will save you that time and not cost you as much as you spending currently. This does depend on the size of your company and the volume of work involved, but as a general rule for smaller businesses, it works.

Accounting function: You can outsource your accounting function for less than R3 000 per month and get good value for money for a professional service.

Assistant for admin work: A virtual assistant can be used here again to save time and money.

Advertising: Seeking professional help in this area is worth every cent. These professionals are incredible when it comes to this and can change your business. This outsourcing will not only save you time but actually bring more business in and therefore make you more money.

The end result? Your value increases

This will now change your value. Here’s how:

You are now working 120 hours a month and earning the same R30 000. This makes your value jump by 25% to R250 per hour. In addition to this, you have an extra 30 hours a month (and if done right – more business). This excludes the stress relief, less pressure to perform for long hours and the fun you can have outside work with family or friends!

This article was written and published in August of 2021.

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