Beginning any business means commitments in your time. You can expect your gain to be based on the time spend, and grow faster over time, so good cost analysis is difficult initially. Still, there is a monetary value in your time, perhaps as low like $5/hours. To help make the good decisions about how will you utilize its time, you will have to use your personal analysis. Still at $5/hour, it will be clear that some things should be hired out to other people who can do it more efficiently than yourself. For example, making web pages and building your site could be less valuable than chasing leads, so this is something that can be hired out if your time is more valuable elsewhere. Sometimes reading free information is useful, and other times just buying the specific information you need will return more of a profit. Working harder is often an available option.
When figuring on what your time is worth, it is important to remember that laziness does not fit in the equation. If you have the spare time to complete a task, and have the knowledge to complete the task, there is no reason to hire this work to outside sources.
A time cost analysis should be used if you have one task that is ahead of you, and another task comes up. You will be able to use yourself analysis to determined which project is more profitable for you to personally take on, and which projects you should hire out.
Also remember that this analysis will change over time. As your business develops, your time becomes more valuable. This is something you need to consider, and reanalyze yourself worth every few months or as needed.
This may seem like a simple thing, but the truth is, if you have an accurate time cost analysis, you can make great decisions on future projects and it will translate into money in your pocket.
When you do these analyses, be sure to be fair, but do not be biased. I know you time is priceless, but you have to put a dollar value to it. You know the profit you return with the normal day or week of work.
- All in all, a time cost analysis (if done right) will make you money in the long run and hopefully even save you some time. You will also find yourself doing jobs that you enjoy more, and when you enjoy your job, you are more successful. This is an excerpt from www.wowtalentspecs.com/1001Tips.html
-Brandon Cobb aka Darksun22