Do you want to start your own business and set financial goals? In this video, you’ll get to know the most important business skill which will help you to set your worth.
Timestamps:
00:00 Introduction
01:53 Goal Setting
03:57 Effective Delegation
05:04 Stop Wasting Time
05:25 Pricing
06:01 Protect Your Time
06:19 Calculating EHR
Resources:
Guide to Time Management:
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In this video I'm going to teach you the Most important business skill that I Know I was lucky enough to learn it Early on and I'm happy to be sharing it With you today here's a question for you How much is your time worth how much Does one hour of your time actually cost Knowing the answer to this simple Question is absolutely crucial when it Comes to achieving your financial goals But if you ever want to run your own Business good luck trying to scale Without it knowing your value per hour Allows you to delegate an Outsource Properly letting you spend more time on Projects that actually grow your Business and things you actually enjoy Doing for example let's say your time is Worth fifty dollars an hour I'll show You how to calculate this later why Would you ever mow your own lawn again Let's say it takes an hour to mow the Lawn getting someone else to do it for You cost about 25 an hour if you do it Yourself then sure you've saved 25 but In reality you've actually thrown 25 in The trash can because your time would Have been better spent generating income If instead you would have just worked For an hour you'd be up 25 plus you have Put in another hour towards developing Your career and leveling up in life Which if you ask me is a ton better than Mowing the lawn here's another exam
Sample I offer one-on-one hour-long Consultations to help entrepreneurs with Their digital marketing strategies an Hour of my time cost nearly two thousand Dollars did I make up this number from Thin air nope it's what the numbers told Me my time is worth if I charge any less Than this I'd be losing money this isn't Some Fufu mindset stuff like the power Of attraction or mantras like if you Value yourself others will too there's An actual mathematical basis behind this Concept of knowing your worth and in This video I'm going to show you exactly How to calculate it your EHR your Effective hourly rate and more Importantly how to apply it in your life To achieve your goals but before I do That I'd like to give a shout out to the Sponsor of this video the like button Research shows that smashing the like Button is the one thing that unicorn Level CEOs have in common Jokes Aside it Helps my channel out a bunch it also Lets me know that you want to see more Content like this so thanks now before I Get into the calculation side of things Let me lay out a few more use cases to Illustrate just how valuable knowing Your worth actually is the first is goal Setting let's say you wanted to make a Million dollars and your effective Hourly rate is 50 per hour how how many Hours do you need to work we take 1
Million divided by fifty dollars per Hour and we get twenty thousand hours Considering that the standard that most People work is 40 hours per week and 50 Weeks per year if we take 2 000 hours Divide by 40 then divide by 50 that Means it'll take 10 years Let's think about this number 10 years Maybe you're cool with it but most Likely you're not how can you shorten This timeline you can either work more Or increase how fast you make money I'm Gonna assume you don't want to work more Than 40 hours per week so let's figure Out how to optimize your situation many People these days have multiple income Streams maybe you work at your Joby job In the daytime and at night time you Have a side hustle building a website That makes you passive cash flow or Maybe you're an entrepreneur that has a Few things going on and agency selling SEO services and a brick and mortar Company selling dutch ovens your Effective hourly rate is your average Your Baseline it's how much you make in Total divided by how much you work but Different income streams earn money at Different rates let's say your effective Hourly rate overall is fifty dollars per Hour you have a side hustle website that Makes you a hundred dollars per hour but You also drive an Uber for 25 an hour I Think you already know what I'm gonna
Say here because the writing is on the Wall if you want to make more money you Need to cut out all these time sinks That are not efficiently generating Income and instead double down on all The huge money makers by doing so you'll Be raising your value per hour if you Simply stop driving for Uber and focus On your 100 per hour side hustle website You've instantly changed your value per Hour from 50 to 100 and now you can Dedicate all your time to figuring out How to get that website to make more Money here's another example if you had A service based business serving clients Let's say you had one client that was Paying you two thousand dollars a month But you were dedicating 80 hours per Month to them that's 25 per hour but you Had another client paying you a thousand Dollars per month but you're only Working 10 hours per month for them That's a hundred dollar per hour client You need to get on the phone fire client Number one and spend the rest of the Week finding more ideal clients that pay Higher than your effective hourly rate This is how you grow if you consistently Choose the right battles to fight you'll Grow your value per hour over time Here's another use case delegation being Able to effectively delegate is probably The best benefit of knowing your worth If you own your own business this is
Going to be the absolute key to scaling Remember before when I gave the lawn Mowing example the premise is like this You don't want to be doing anything and I mean anything that you could be Outsourcing for cheaper than your hourly Rate but it doesn't just stop with Mowing the damn lawn you should start Outsourcing stuff like content writing Meal delivery Administration tasks Cleaning laundry emailing in each and Every entry level task behind whatever Business you're involved in does what Are you going to do when you get all This free time you're going to start Working more on those projects that make You more money than your effective Hourly rate because doing so will Increase your effective hourly rate over Time if your rate is 50 per hour and you Start ditching all your menial tasks so You can focus on your 100 per hour Projects then eventually your value per Hour will become 100 per hour and then What should you do after that once again Start delegating all your tasks that Make you less than 100 per hour the Great thing is that there's a lot of Stuff that you can hire out for that Price now you're looking at hiring Full-time staff and skilled Professionals simply because you first Decided not to mow the lawn anymore keep The cycle going this is the key to
Scaling and getting to your financial Goals faster the next use case revolves Around time wasting knowing your Effective hourly rate makes it pretty Damn difficult to waste time you'll be Able to tie an actual cost to hours Wasted how often do you find yourself Scrolling through Instagram Facebook or Lord forbid tick tock on your phone I Get it it's addicting as hell YouTube is Clearly my poison just know if your Value is 50 per hour then a two hour Rabbit Hole watching trickshot videos Just cost you a hundred dollars another Use case is pricing if you're a Freelancer or service provider how much Should you charge let's say you're a Search engine optimization freelancer I Suppose you can just Google search Engine optimization salaries and find an Article like this saying you should Expect to make sixty three thousand Dollars per year but does this arbitrary Number even fit in with your goals sixty Three thousand dollars per year equates To roughly 31.50 per hour if your Effective hourly rate is 50 per hour and You charge your clients the industry Standard of 31.50 per hour then you're Pretty much preventing yourself from Growing knowing your worth is about Knowing your worth who cares what the Industry standards are price yourself Based on what your value is period the
Last use case I got for you shouldn't be Slept on it's about protecting your time Along your journey there's gonna be Distractions people will ask things from You that are going to steer you away From achieving your goals just know that There's a cost to everything I'm not Saying to become a recluse or to stop Helping people but always be aware that There's an indeed an opportunity cost From wasting time okay so let's get into How to accurately calculate your Effective hourly rate your EHR there's a Few different systems for doing this and To be frank I find that they're all Pretty inaccurate except for the one I'm About to show you accuracy is key if you Think that you work 100 hours per month But you actually work 50 then your EHR Is going to be 2x off and you're going To be royally up all your Scaling hiring and delegation Essentially you need to know two numbers How much money you make in a given month Divided by how much time you work in a Given month it's pretty easy to Determine the top number just look at Your earnings from the last three months And take the average since income can go Up and down especially if you're an Entrepreneur you want to take the Average to balance things out figuring Out the hours you work per month is a Little bit more challenging because many
People just guess they figured that they Work eight hours per day because they Start working 9 and into five trust me When you start doing this task you'll See how much you actually work on Monday The second you start doing a task you're Going to write down what time you Started and what time you finished it so As you can see here the first thing I Did that morning was optimize my Facebook ads for six minutes then for Your next task you're gonna do the same Thing jot down the start and end time Continue doing this throughout the day You only want to be charting the time That you're actually working don't count Time you spend on Instagram don't even Count when you go to the bathroom at the End of the day you'll end up at the list Like this and from here you can make a Total of how many hours you worked in a Given day and I guarantee it's not even Close to your expectation do the same Thing each of the other days in the week Don't assume that you work just as hard On Friday as you do on Monday now that You know how much time you work in a Week you can figure out how much you Work in a month since it's roughly 4.25 Weeks in the average month just multiply Your hours in a week by 4.25 now you Have all the pieces through the puzzle And you can calculate your EHR in the Description I left a link to a guide I
Wrote which goes into this in more Detail so check it out after you watch This video now here's where you can go Beast mode with things remember how we Were literally tracking every single Task and how long they take individually Couldn't have been easier to distract The time you spent working without Attaching it to tasks well if you have Multiple income streams now you can Figure out the EHR for each business Calculate the EHR for each of your Income streams and compare them to your Average for the gigs that don't make the Cut it's time to call them off double Down on your big money makers instead And make sure to subscribe for more Videos just like this one
