What is the real business cost of things you do every day? Here’s some things to remember:
- If you clear $50,000 / year in your business, you’re making $25 / hour
- If you clear $100,00 / year, you’re making $50 /hour (1)
That’s what your time is worth at a minimum
If you work for an hour during the business day to figure out and pay your monthly Florida State Sales Tax return, that just cost you $50. If you could have used that time to check your inventory, take care of a customer, go to the bank, or manage your employees, it cost you more than $50 — maybe $60 or $70. That’s just one hour. How many hours a week do you spend
- filing and entering receipts
- printing invoices
- paying routine bills
- backing up your computer
- scanning and storing documents?
8 hours? 16 hours? That’s $400 to $800 / week you’ve actually taken out of growing your business — or taken away from you family and friends. $20,000 to $40,000 a year. Just because you’re not writing a check for it doesn’t mean it’s not a real cost.
What about equipment and software?
- Scanner: $400
- Quickbooks $180
- Backup Service / portable drive $120
What if in those extra 8-16 hours a week you could:
- Win two more customers a week?
- Avoid hiring an extra part-time employee?
- Network to gain more customers?
- Spend more time with your family?
The difference between the cost of the non-value-added things you’re doing now and the things you could be doing to add value is called “opportunity cost.” (2) It’s a very real concept in economics, cost accounting, engineering, and project management. You may still want to “do it all yourself,” but be honest about what it’s costing you. At Twin Gators Business Services, we’re not only acutely aware of this, but we strive to make sure you get the value for your time — and more.