To give you an idea of what it takes to earn business revenues equal to various annual salaries, I've broken it down into the hourly rate an individual would need to earn to achieve the following...
$50,000/yr = $40 every money hour**
$75,000/yr = $60 every money hour ($1 a minute)
$100,000/yr = $80 every money hour
$120,000/yr = $96 every money hour
$150,000/yr = $120 every money hour ($2 a minute)
$200,000/yr = $160 every money hour
$250,000/yr = $200 every money hour (more than $3 a minute)
Greater than $250,000 - you probably don't need the reminder - "Rich enough not to waste time." according to Gordon Gekko. Getting your head around this idea is starting with the basics. If you want to seriously start converting your time into money, give this some thought...
If you were somehow able to get rid of all your “$10/hour” tasks (we all have them but we shouldn't do them during money hours) and only do “$100/money hour” work all year, you'd earn just under $125,000 for the year. But if you shifted just 5% of that "$100/money hour" work to $1,000/money hour work, you’d make over $180,000. So a 5% change would boost your income by 45%!
Business owners should always look to multiply their time. That means for every hour you spend working in or on your business, it should be earning you revenues beyond what you could charge for just the time you put in. If you can "charge yourself out" at $100 an hour, you should look for ways to invest each hour of your time in such a way to earn your business a multiple of that $100 - two times, three times or even ten times. That's how you convert your time into money in a way that scales. Start with simple, small things like training your staff to do some of the more menial tasks that you might still be holding on to and build from there. To do otherwise is a waste of time, effort and potential earnings!
"Big doors swing on little hinges." - W. Clement Stone
**money hours = hours during working days where you can talk with prospects and customers and
make good things happen (converting time into money). The phrase "money hours" was coined by Sam Parker. I've altered the definition of it to match up with typical Australian work days & hours. Basically, there are 1,242 money hours in a calendar year. Drop me an email if you want to see the detailed maths and assumptions!