Time is Money….so make some!!!

A lesson everyone woman business owner should learn is “opportunity cost” or the trade off for doing one thing rather than another. The trade off can be good or the trade off can be bad.  How can understanding opportunity cost make a difference in your life? Well, let’s consider the following scenario.

You earn $50 per client or customer.  You can fit in only 4  clients per day because you have other obligations such as shopping, dry cleaners, picking up the kids, cooking, laundry etc.  So to make up the lost revenue you work a few hours on the weekend instead of spending them with your family.

So let’s do the math, an average of 4 clients for 5 days is 20 plus 2 extra clients on Saturday for a total of 22 clients. 22 times $50 or $1100.

What if you didn’t have to spend time on errands? What if  you could have that time for earning revenue?

I wave the magic wand and you now have 1 hour more per day. Let’s do more math. During that 1 hour per day you can serve 1 additional client – 5 days times $50 = $250.  Now in the 5 days you made $1250 – and you have Saturday off to spend with your family.  Let’s get crazy and add 2 hours to your day. Now you can add another $250 to the week’s total bringing your to $1500. That is $400 more and no Saturday!

You made more money in less days because you used your time in a more valuable way.

So how did I get you an extra hour? Easy – an assistant. Once thought to be only the indulgence of the rich and idle,  assistants are the saviors of the everyday working woman. How so? Assistants or Family Assistants cost between $10 and $12 an hour plus a gas allowance. The 10 hours of errands, cooking and cleaning that you were doing were costing you $50 and hour! I simply replaced those hours with someone that costs you $10/hour. You now are net $40 an hour for every hour your Personal Assistant is on duty.  You also have an extra day to spend with your family.

Let’s recap the benefits:

1. You make more money
2. You employ someone who needs a job
3. You have more quality time with your family
4. Your stress level drops considerably and you are happier

It is simple and it works! If you spend 10 hours doing chores at the opportunity cost of $50 and hour, you are costing yourself $500/week!! The Assistant is only costing you $100.   Why would you pay $500 for something you can get for $100?

Now, let’s say that you make $100 a client per hour. Well the cost of you running errands just went to $1000 per week. The personal assistant is still $100.  Why would you pay $1,000 for something you can get for $100.

Ok, so you get it. You want an assistant. So, how does it work? Well, here is what works well for me:

1. Shopping – When I item we use runs out, I put the lids, labels, bags and box tops of the item in a basket on the kitchen counter.  On shopping day, the assistant buys the items in the basket.  Tip: if you start with 2 of things then you are never out!
2. Dry cleaning – We have a special laundry bin for dry cleaning. Our assistant drops it off one week and picks it up the next.
3. Cooking – Pick two easy entres like a spaghetti, casserole or similar, have them prepared and in the refrigerator. Voila dinner is served.
4. Cleaning – have a list of activities by day, get a routine going. A little bit each day makes a huge difference.
5. Office work – banking, deliveries, filing etc.
6. Pets – dog walking, poop scooping, litter box changing, feeding, washing, etc.
7. Errands, water the plants, car repair, smog, post office, library, COSTCO, UPS, you name it…your personal assistant can help you and your family lead a much better life.

How does the Assistant pay for things.  This is the greatest part. You open a bank account and get a debit card. Keep only the amount of money your are comfortable with in the account.  All transactions are paid for with the debit card. You have a complete record of the spending. The major bonus here is that you SPEND LESS. Why? because your assistant is not impulse buying. They are getting what is on the list and only what is on the list. Now add the savings from not buying the 64pack of M&Ms at CostCo and you made money again!

I also have a house log with instructions written down as we go along.  That way if there is a new person they can get up to speed quickly.

Assistants can be independent contractors (1099) or W-2 employees of your company.  My assistants also work in my home office filing, delivering packages, scanning etc. You will have to decide which makes sense for you, but be sure to properly account for their employment.  I actually have 2 assistants that each work about 10 hours per week. They back each other up and shift hours as needed. Because they do what they do I have 20 hours to do other things.

The bottom line is your time has a value. Figure out that value and then equate whether that hourly rate is worth it for errands and chores.  If not, delegate to a lesser cost resource and MAKE MORE MONEY by MAKING MORE TIME!!!