What if someone said that you can start every day with $1,440 credited to your bank account? There was no restrictions on how you spent the money, the choice was completely yours.
The catch is that you can’t save any of those dollars for the next day. You have to spend them all, or they get wiped out and you begin the next day with another $1,440.
There is another catch. One day it will end. There will be nothing.
Knowing this, how would you spend it? I bet you would carefully plan out where each dollar would go, trying not to waste any of it. After all, money is a precious resource.
Do you know what else is a precious resource?
Time is a finite thing. There is a fixed amount of it in each day.
Every day you get given the gift of 1,440 minutes. How do you choose to spend those? I can almost guarantee you don’t meticulously plan your time like you would your dollars.
Why is time different to money? Why do we plan our cash spending, but not our time spending?
When it comes to business, your time is money. So, let’s look at why you should care what your time is worth, how you can work out the value of your time and how you can make the most of it.
In other words, we’re going to show you, your Opportunity Value of your time
Why You Should Care About What Your Time Is Worth
Like I said, your time is precious. There are only so many hours left in the day to work on you or your business once you remove the time needed to sleep, eat, shower, spend time with your loved ones, and service your commitments.
The time you waste on unimportant, or unnecessary tasks is time that you could be spending on what you do best. Instead of trying to think up ideas for your newsletter or finding something relevant to post on social media, you could be assessing and converting client leads.
The process of making sales takes time, it doesn’t just happen by magic. Valuing your time is the first step towards increasing your sales and growing your business. If you know how long it takes for you to go through the process of converting a lead, then you will truly know what your time is worth.
Formulate Your Value
Placing a monetary value on your time can really help you to be more conscious of it and to make the most of every minute that you have at your disposal. But how can you put a value on time?
In order to assign a value to your time, you need to know two things…
- The average lifetime value of one of your clients
- Your sales conversion rate
Once you have those two pieces of information, you can work out the value of your time. Your formula is…
Lifetime value of a client x sales conversion rate = Opportunity Value of time
Let’s put it into a practical example so you can see how it works.
Say the average lifetime value of your client is $2,500 and you convert one out of every 4 leads, so your sales conversion rate of is 25%. Which means your Opportunity Value that you are presented with is $625 (25% of $2,500).
So, every time you sit down with a potential client, it is a $625 opportunity. You obviously want to dedicate as much of your time to these valuable opportunities as you can. After all, that is how you are going to bring the revenue into your business.
Then you need to consider all those other tasks that you need to do in the day, the ones that take you away from those client meetings. Things like admin, producing a newsletter, posting on social media, creating branded content. Sure, they are all tasks that need to be done, but do you need to do them yourself?
That brings me to my next point…
Delegate Routine Tasks to in-house Staff or Outsource to the Experts
Now you know the value of your time, you know what your focus should be. You need to be ‘talking’ with your clients bringing in the dollars, not fluffing about trying to write newsletters or social media content.
To be our most efficient, business owners need to stick to what they are good at doing. That is why you will never find me under the bonnet of a car, because that is not my gift. My value comes from what I know – marketing strategy and implementation.
To allow me to focus on my area of genius, I outsource the non-essential parts of my business. Things like, reconciling my bank account, my bookkeeper does it for me. Likewise, I don’t need to know how to upload articles and videos to my website and my social media, my virtual assistant does it for me.
To ensure that you make the most of those 1,440 minutes in a day, delegate those non-essential tasks to someone in your team or outsource them to an expert to make sure they are done right. Then you can focus on those $625 opportunities instead of wasting two days every month trying to piece together a newsletter.
Your newsletter is a vital component of your marketing strategy, but trying to handle it yourself can be a massive waste of your time. If you would rather be servicing the $625 opportunities, then why don’t we chat about your company’s newsletter? My team can take the burden off your hands so that you can focus on what you do best.
This week’s guest blog is from Lara McCormick of Big Rock Communications. Lara has spent her whole career perfecting the art of generating sales simply by using effective client communication.
Book your free 30-min strategy call with her now and you can discuss how best to spend your time currency to convert it to dollars.
To learn more on our Money Mentalist series of Women in Business, CLICK THIS LINK to watch our Case Study video.
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