Hi guys! It’s Sophie here from Resource Worldwide. I just wanted to share something that has come up a lot in conversations over the last week or so. That is the actual cost of how you are spending your time. I know that sounds a little bit complicated. I am going to break it down into looking at numbers as well. I remember a couple of years ago when I was building my e-commerce business when one of the things that was really holding me back from outsourcing was the fact I did not want to spend money on someone who is doing something for me which I felt I could do myself. 

It was a real mental barrier, and I had this broken down for me. It gave me a real mentality shift. It actually encouraged me to start looking at outsourcing and working with virtual assistants. Since I did that, my business not only significantly increased in revenue, it also allowed me to free up my time enough to the point that I was able to start a second business. I am able to spend a lot of dedicated time with my son George, and do activities that I enjoy doing. My husband was able to leave his job and start working in the family business as well. 

It has been really important in our lives that we were able to realise the importance of this. So I just wanted to share it with you through this blog. One of the things that I did when I started to think about what it is truly costing me to be doing all of these tasks is to start thinking about all of the tasks I was doing. What I did was to make a list of everything that I was doing from replying to emails, ordering stock, right through to developing products, and making a list of all of the tasks.

Second, I made a note about how long it was taking me to do each task. Now, at that time, I was doing a little bit of coaching. I was also doing a little bit of guiding for people. I was charging that out at an hourly rate. It was about a hundred pounds an hour. This eventually comes into play in a minute. I just wanted to make that clear that I would set my own hourly rate at a hundred pounds per hour. 

So, I included it in my task list. Let us say in a day, I would spend three hours on managing stock. I would spend one hour replying to emails or whatever it might be, but then start to calculate the cost of how much time I was spending on each activity. When I look at the emails, I am spending like five hours a week responding to emails. So, if I was to charge myself out for five hours a week, that would cost me 500 pounds. 

The other thing that I was thinking about was what else could be done in those five hours. I could be sourcing more stock. I could be negotiating better deals with suppliers. I could be looking at product development and customer acquisition. I could be doing a lot more business and revenue generating activities than replying to emails. When I started to realise how much it was actually costing me to do the job such as replying to emails, I started to think more how much I would pay someone else to do that. It was a lot less than a hundred pounds per hour. 

That was one of the big mentality shifts that I had. I literally had this conversation with one of our clients in her consultation last week. She wanted to start working with someone who would help support her with her social media. She got to the point where she was feeling really overwhelmed and frustrated. She was very active on a lot of different social media channels, but it was taking so much of her time to create, repurpose, and deliver the content, and then respond to all of the engagement around it. It was pulling her away from doing the things that she wanted to do. It was also pulling her away from being able to enjoy the orders that were coming in and from being able to enjoy time with her family. 

She was building a business, but it cost her a lot of things. When we summed it up, she charged her services out at around hundred dollars per hour. She was spending around seven or eight hours a day on social media tasks and charging 700 to 800 dollars per day on social media tasks. She realised that if she could outsource that to someone else, the work that she could do in those seven or eight hours, she could free up the time to spend more time with her family. 

Secondly, the work she could do within that time would generate so much more revenue than the cost of getting somebody else to do it. You should consider how much of what you are doing in your business is costing you. Are you at a bottleneck and should you potentially start looking at ways to start outsourcing some of those tasks which will help you free up your time and generate a lot more revenue, ultimately scale your business, and help you work towards living life on your terms? These are only a couple of things for you to think about when building your business. 

Sophie Dearden
Resource Worldwide
resourceworldwide.co.uk