[A submitted response to a ceoblognation article “21 Entrepreneurs Share Advice To New Entrepreneurs” not selected but still worthy to share.]
Question: Entrepreneurs and business owners provide their one piece of advice to someone just starting out.
New business owners must understand the value of their time to grow a successful business. Face it, as an entrepreneur or small business owner you have the deck stacked against your success. There is so much to do in order to get your business launched and growing. You pour sweat equity to make a beautiful business creation. Yet, knowing the things you need to do, does not stop you from:
- Underestimated how long it takes
- Spend time on stuff that does not put butter on the table
- Make the terrible mistake of underestimating your value (aka “the price”) of their time
Why do business owners underestimate their time? Because they are new to the business and don’t have the experience to understand what their time is worth.
Owners take on the role of CEO, CFO, Chief Marketing Officer, Chief Operations Officer, and many other hats. Then you blink and find yourself “working in the business” instead of “working on the business” and all those lofty dreams of living a life of freedom and choice suddenly seem so far away. To break out of this, entrepreneurs and small business owners must understand the “cost” of their time in order to understand where their focus should be spent. Use the “charge your time” mindset to understand what takes priority in your business. Delegate and outsource the rest.
To break out of this, entrepreneurs and small business owners must understand the “cost” of their time in order to understand where your focus should be spent. Using a “charge your time” mindset helps business owners to understand what takes priority in your business. Delegate and outsource the rest.
The simplest way for a “founder” to set a charge rate is to select a gross revenue goal and work backward to an hourly rate. This will at least give you a starting point on how to determine whether your time is being well spent or not. It will also start to give you an insight on market reality.
There is a reason why successful entrepreneurs hustle like mad. It’s because they know that value of their time and because time directly translates into money for the early entrepreneur.
Check out some of the other responses featured in CEOBlogNation.com…