How Much is Your Time Worth?

Originally Created On:
January 19th, 2011 at 2:33 pm
I was getting so overwhelmed with mundane, day to day tasks, that I was neglecting the more important tasks that would really grow my business. I thought I was being productive by keeping busy performing data entry, book keeping, faxing, scanning, creating spread sheets, etc. These tasks could have easily been done cheaper by someone else.
That reminds me of the two sales people who were congregating at the water cooler at the end of the day. The one salesman said to the other, how was your day? Well, I was really busy. I mailed 10 letters, I returned 15 emails, I faxed 10 documents, I ordered new business cards, and I created a new spread sheet. The other salesman said – yeah, I didn’t have any sales either.

We all fool ourselves into thinking that keeping busy equals generating profit. It is easier to tackle the routine tasks that you know how to do. Speaking to sellers, buyers, and developing new business systems is scary. We all put off those more challenging tasks, but those are the tasks that really generate the revenue.
The first thing you need to do is determine what your time is worth, $100 an hour, $500 an hour, $1000 an hour. What value do you think Donald Trump puts on his time? If you are worth $100 an hour, should you be doing $10 an hour work? Of course not.  If you are doing $10 an hour work, you have determined that you are only worth $10 an hour. If that is the case, why not get out of real estate and go work at the mall?
The First thing you need to do is create a list of every task that you perform, and then put a dollar value on each of those tasks. Take all those tasks that can be performed cheaply by someone else and create a step by step system on how to perform each task.  You will find that most of these tasks can be performed by someone for less than $10 an hour.
Next you need to outsource or hire someone to accomplish those tasks. In the beginning you will need to train and manage that person who will be performing the task. You can even set up training videos for each task. Now you have outsourced the training. The training system needs to be so detailed that you could hand the manual or show the video to someone who has never worked in real estate, and they could successfully manage the task. Set up a Q.A. system to make sure the task is being performed correctly.
The great thing about setting up a system for each task is that you don’t have to recreate it each time you get a new person to perform it. You can always refine the system to make it more efficient. In a future post, I will show you some great ways to find people to perform these tasks inexpensively.


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