What Your Hour Actually Costs

I sat down with an owner last week who runs a $3 million company. He was exhausted. He told me he spent three hours that morning fighting with a vendor over a $500 shipping error.

I asked him a simple question: "What is your hourly rate?"

He stared at me. He had never calculated it. We ran the numbers right there. Based on his revenue, ownership percentage, and the 50 hours a week he works, his time was worth $1,250 an hour.

He just spent $3,750 of his own time to save $500. The math simply does not work.

Most owners treat their time like it is infinite. They do $25-an-hour work and wonder why they feel busy but broke. You have to know your number. Put a real dollar figure on your hour, and watch how quickly your to-do list reorganizes itself.

Have you calculated your hourly rate recently?

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From "The Owner's Almanac" - 90 days to build a business that runs without you. Available on Amazon.