It is nothing new for the work at home entrepreneur to spend long hours creating and marketing a new product or service. Nonetheless, many entrepreneurs struggle to quantify how much their time is truly worth.
Take the person who works at a convenience store for an hourly wage. This person can easily tell you how much their time is worth per hour, because that it what they are being paid per hour. Additionally, the salaried employee generally works a forty hour week, so they can divide their salary by fifty-two, then divide that number by forty to tell you how much their time is worth.
However, if you work at home, things are not quite so simple. For starters, many entrepreneurs work seventy to eighty hours per week. Moreover, even if we are not staring at our monitors, we are often thinking about work. The distinction between work and home becomes even murkier if you work is something that you really enjoy doing.
So why am I stressing so much that we entrepreneurs determine how much our time is worth? I am doing this so that you value your time, and become more efficient. Those of us who work at home can truly say that time is money. If we can become more adept with our time, we can make more money. With that being said, I have devised a simple formula which you can use to actually determine how much your time is actually worth. You just need to take your income for a specific period, and divide it by the number of hours in that period. I know that it is not the Theory of Relativity, but it is a decent start. True, this calculation totally overlooks the amount of time we spend thinking about work when we are not at our computers, in addition to failing to acknowledge our expenses. Nonetheless, it will do its job for what we need.
I strongly advise that you base your calculation over a longer stretch of time. I would suggest a month, if possible. The reason why you want to do this, is because you want to avoid your results being distorted by uncommon occurrences, such as a missed day of work, or extreme customer fluctuations.
For most individuals who work at home, and have not been doing so for very long, it is not uncommon to find that the value of your time is a few dollars per hour or less. Once you are better able to optimize your business, this number should increase.
Nevertheless, this is now your basis of comparison. You can measure your progress from here with an objective measurement. Over time, you can measure your work at home progress.
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