When you’re in hospitality or food service, there’s plenty that demands your time and attention. However, what many fail to calculate is the cost of their time. Take a moment to consider this: what does your time really cost? While it’s not a perfect estimate, understanding what you’re sacrificing by trying to do it all yourself can give you a much stronger picture of what you need to outsource to others.
Calculating Your Value
In essence, the value of your time is expressed by your annual salary including benefits divided by the number of hours you actually work each year.
Value = Annual Salary (+ Benefits) / Annual Hours Worked
If you’re starting your business from scratch and its net worth is relatively low, your hourly cost might be as well. On the other hand, if you’re running a successful restaurant or hotel, you might find that your time is worth more than you think.
Examining the Balance
How much does it really cost to complete a particular activity, whether it’s having your taxes done, cleaning out an old storage room, or taking care of the decor for a new restaurant?
Sure, doing it yourself seems like a great way to shave a little money off of your budget, but that’s only true if your time could not be better used in accomplishing other tasks.
If you’re forcing yourself to work overtime, you’re lowering your net worth – and potentially bringing down the net worth of your business.
The Cost of Experience
Hiring experienced professionals to take care of things might have a higher up-front cost, but it also means that you can be sure the job is done right.
From a new paint job that won’t peel off the walls or need to be redone because you chose the wrong kind of paint to an experienced financial professional to oversee your books, hiring a professional means several things:
- Less time spent cleaning up mistakes later
- Greater professionalism
- Higher levels of accuracy the first time
- Accomplishing the task much faster than you’d be able to do it
Your contributions to your business are many and varied. You’ve done plenty of things, particularly in the business’s early days. The longer you own your restaurant or hotel, however, the more your time is worth–and the more important it is that you bring in professionals who will help make the most of it.
Sending another individual or hiring out a particular task is a more cost-effective use of your resources.
Your Employees’ Time Matters, Too
Accepting that your time is important is just one step in the process of making the most of your business. It’s also important to acknowledge how much your employees’ time means.
Whether it’s the manager who is the absolute best at dealing with customer complaints or the server who always receives glowing reviews from customers, sending them to take care of menial tasks means that you’re paying their current (higher) salary for those tasks.
In many cases, sending another individual–or hiring out a particular task instead of having your employees complete it–is a more cost-effective use of your resources.
Understanding the true worth of both yourself and your employees is the ideal way to increase your business and make the most of every aspect of it. The cliche is, “Time is money!” The truth is, your time is worth your money. Acknowledging that will make it much easier to decide which tasks are truly worth your time and which ones are better moved to someone else’s plate.
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