I
opened my first business in 2002 . Pawsitively Pretty Mobile Grooming is still going strong today . I had already been the highest priced shop groomer in my area and raised my prices even higher when I went mobile .
I was sitting in the kitchen of a client that followed me from the shop . Her price went up $ 20 . Based on the average price in the area , I was about $ 30 higher .
I felt comfortable enough with this client to ask how she really felt about my pricing . At the time , mobile grooming was unheard of and had several people call me and express sticker shock . She just looked at me and said that I just gave her back 2 hours of her day . That ’ s the time she spent driving back and forth to the shop where I worked . Those two hours were worth the extra cost .
That was kind of an eye opener for me . My time has value . So , in the back of my mind was this vague notion of what I thought
my time was worth .
But that ’ s just what it was : vague . So , let ’ s change that .
Okay ladies and gents , time for some math !
I want to earn $ 100,000 for the year . Last year my business expenses were $ 30,000 . The total income I need is 130,000 to clear that $ 100,000 . I plan to work 48 weeks of the year . Mustn ’ t forget my vacation time .
$ 130 , 000 / 48 = $ 2708 a week
$ 2708 / 40 = $ 67.70 . I ’ ll round it up to $ 68 an hour over the course of a 40-work week .
I ’ m worth $ 68 an hour .
Puts a different light on things when you ’ re futzing around on Facebook during the time you are supposed to be working . If I ’ m not making $ 68 every hour , then I ’ m losing it . Once you are out of your workweek , your spare time is up to you . Spend it with your family , play and network on Facebook , or read a book . It ’ s not billable hours anymore .
Lets take this article . If it takes me two hours to write it , the cost to me is $ 136 . If I write a little , run over to FB , and now it takes me two hours , my investment to my business jumps to $ 272 . I doubled my expenses . The financial goal of a business is to keep expenses to a minimum while producing quality products . Will this article generate the cost of my investment ? Time will tell , but a $ 136 investment is easier to recoup than $ 272 .
I use the word investment rather than loss of time . Investment is a business expense and is factored into my cost of doing business .
Now I want to introduce another principle called Deliberate Practice .
The intent of Deliberate Practice is to make the most of the value assigned to your time . Deliberate Practice is when you work
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