As a shop owner, have you ever asked yourself the question, “What’s my time worth?” In general, most business owners don’t consider the cost of their time when calculating expenses or investments in areas like marketing. Many times shop owners will handle tasks, like marketing or bookkeeping, on their own. The most commonly cited reason — to save money. However, if they were to evaluate the time and effort they put into handling these activities, they would find their shop would be better served if they retained the services of an outsourced professional. How do you know if it’s more advantageous for you to hire an outside professional or do it yourself? Here are some ways to evaluate the worth of your time.
Start the process by asking and answering some tough questions.
- First, go through a calculation (see below) to figure out, “What’s your time worth?” How am I spending my time each day? When answering this question, break it down into categories and calculate
the number of hours you’re spending on each major task over a period of one week, one month and one year. - How effectively am I handling each task? As you answer this, think of the tasks you struggle to complete. Are you spending more time on those tasks because they are more difficult or are you avoiding them?
- How knowledgeable am I at handling tasks that can be outsourced, like marketing or bookkeeping?
- Am I happy with the results I’m getting in areas like marketing or managing my finances?
Now for the meat and potatoes. Remember, time is a limited and valuable resource. As a business owner, it’s important to make certain you are spending your time wisely. Here’s an on-line calculator to help you determine the value of your time >> http://www.businessknowhow.com/manage/timecalc2.htm. You can also use this simple formula to calculate your time value per hour:
- Write down your annual base salary.
- Divide that number by your annual workday hours (e.g. 50 work weeks per year x 40 hours per week = 2,000 workday hours per year).
- Multiply that number by 3 (for every three hours in a day it is estimated we are really productive only 1).
- The resulting number is your time value per hour.
Once you’ve calculated the value of your time, you’ll be able to make some important decisions for your auto repair shop. You’ll be able to compare the cost and effectiveness of doing these outsourceable tasks yourself vs. hiring a professional.
We’ll leave you with this thought… Is it more cost-effective and time efficient for someone to handle their own car repairs or would it be better for them to bring their vehicle to a professional? Click on the following article title to learn, “Why Investing in a Professional Marketer is Good for Your Business.”
At Motorhead Advantage our focus is on helping you increase your car count and build customer loyalty. The same way you utilize your years of auto repair experience maintaining and fixing customers’ cars, we take our knowledge in auto repair shop marketing and put it to work for you. When you schedule and attend a free 30-Minute Marketing Review with Motorhead Advantage, you’ll find our services to be an affordable and effective way to handle your marketing.
Shift your auto repair shop business into a higher gear! Click here to schedule your FREE 30-Minute Marketing Review with one of our marketing professionals.