Categories: Advice

The Real Value of an Entrepreneur’s Time

By Jeremy Ames, President & Co-founder, Guidant Financial

Entrepreneurs are typically go-getters… producers that can figure out what needs to be done and execute it. They also tend to struggle with letting things go at times.

Why is that? Most entrepreneurs don’t value their own personal time highly enough. Their strength of doing more with less can sometimes be a hindrance when it leads to spending time working on tasks that aren’t important to complete, are easily delegated or where outsourced options exist that deliver higher quality in half the time.

Four tips for valuing your time as an entrepreneur more accurately:

1. Track your time. You’ve heard the business axiom “what gets measured gets managed.” It’s true of your time as well. If you track your time for a week it’s likely you’ll be shocked by how much time you could free up through delegation, outsourcing or just simply deciding not to do something. This can also help you identify the most important drains on your time to address first.

2. Consider the Opportunity Cost. While you whittle away at organizing the stock room, what opportunities passed you by? It’s not that the stock room isn’t important; it’s just unlikely to represent the highest value of your time. What is your time worth when focused on driving revenue, generating leads or recruiting great employees? Are there things in which you can invest your time that will drive the profit needle of your business that you’re not getting to today?

3. Do a Little Research. Talk to some other entrepreneurs you know. Ask them about their tips, tricks and referrals for getting the most out of their time. What do they outsource or delegate and to whom? Search the Internet for solutions to some of the administrative tasks on your plate. Technology has paved the way for some impressive ways to leverage your time (i.e. virtual assistant).

4. Calculate your pay grade. If you want to make $100k a year, then your time needs to be worth about $50 an hour. Are you regularly performing any tasks you would choke at paying someone else $50 an hour to perform?

Jeremy Ames has been honored as one of the Puget Sound Business Journal’s 40 under 40 and as the national winner of the Young Entrepreneur of the Year award given by the Small Business Administration (SBA). Ames is also the former Executive Editor of NuWireInvestor.com, the largest online publication dedicated to alternative investments.

David Nilssen

David Nilssen is the CEO & Co-founder of Guidant Financial, a small business financing company that helps entrepreneurs identify, evaluate and deploy intelligent business funding strategies. Read more tips about becoming a successful entrepreneur in his book, Making the Jump into Small Business Ownership, and follow him on Twitter @DavidNilssen.

Recent Posts

The 10 Most Common Mistakes New Businesses Make

Starting a new business is exciting, nerve-wracking, and full of possibilities. You are stepping into…

5 days ago

Sole Proprietorship vs LLC: Which is Right for You?

What is a Sole Proprietorship? How do you know which entity you should choose for…

1 week ago

“Doing” Beats “Planning”: Why Your Business Needs to Evolve As You Go

Everyone wants to have a foolproof plan when they’re running their business. Wouldn’t that be…

1 week ago

Starting a Business: A College Student’s Perspective

As the teacher drones about some exhilarating calculus problem and my fellow students fight the…

1 week ago

How to Perform a Business Entity Search in Delaware

Delaware is a booming state for new businesses. With business-friendly laws, strong legal protection, and…

3 weeks ago

2025 Halfway Point Success Checklist

Can you believe it? We’re already almost halfway through 2025. What has been going well…

3 weeks ago