Are You Wasting Your Time? The Multi-Venture Entrepreneur's Guide to Time Management
Owning multiple businesses carries a unique set of challenges. One of the most crucial yet often overlooked aspects is understanding and appreciating the value of your time.
By Ryan Godinho •
Opinions expressed by Entrepreneur contributors are their own.
From the moment I embarked on my multi-venture entrepreneurial journey, I learned that managing multiple businesses simultaneously presented a unique set of challenges. I found that organizing my time and working efficiently became increasingly harder as my businesses evolved and the overall potential of my time became a challenging aspect of daily life.
Each day, I found myself confronted with overwhelming to-do lists, desperately trying to divide while still dedicating my attention to my various ventures. The burden was heavy, and the lines between work, relaxation, and rest were blurring, leaving me feeling perpetually drained and disoriented.
I struggled with prioritizing and delegating tasks, unable to move forward with purpose. As the hours of the day vanished into the ether, there was a persistent sense of inadequacy, and I was keenly aware that there was more I could do to propel my businesses forward.
Juggling multiple businesses successfully requires entrepreneurs to maintain effective management. It's taken me many years to forge more positive habits, and the process is an ongoing endeavor, but it does get easier. One vital aspect that often goes unnoticed is the importance of understanding the value of your time. Awareness of your time's worth can lead to better decision-making, enhanced task prioritization and efficient resource allocation.
Related: Here's How to Calculate the True Value of Your Time
Below are some effective methods to calculate the value of your time and the subsequent advantages of possessing this knowledge.
Keep track of time spent
The first step is to track how much time you spend on each of your ventures and different tasks within those businesses. This can be done manually using a spreadsheet or a calendar or by utilizing any of the time-tracking apps on the software market. This will help you identify where your time is currently being spent and how much time you have available for work.
Related: Track Your Time to Get More Done
Establish your hourly rate
Next, divide the annual income of each of your businesses by the number of work hours you've dedicated to working in each. This calculation will provide you with a rough hourly rate.
For example, if your income from one of the businesses is $1,000,000 and you work 800 hours a year, your hourly rate with that venture would be $1250 per hour.
Assess the opportunity cost
Opportunity cost refers to the potential gains from selecting a different course of action. As an entrepreneur with multiple businesses, consider the prospective income you could generate by dedicating your time to the highest-earning venture. Calculate the opportunity cost for each business by comparing the hourly rates and selecting the most profitable alternative.
Consider personal satisfaction and preferences
While earnings are crucial, personal preferences and satisfaction should also be considered. You might enjoy working on a less profitable venture more, or it could offer a sense of fulfillment or personal growth. Achieving a balance between financial value and personal satisfaction is vital when evaluating the worth of your time.
Consistently review your time's value
As your businesses evolve, the value of your time will also change. Regularly review your earnings, hours worked, and personal preferences to ensure informed decision-making regarding effective time allocation.
Related: 3 Ways to Figure out the Value of Your Time as an Entrepreneur
Why is it important to know the value of your time?
Enhanced decision-making: Being aware of your time's worth helps you prioritize tasks and delegate efficiently, allowing you to focus on what is truly important.
Greater efficiency: Recognizing the value of your time enables the identification of areas that can be optimized or outsourced, leading to increased efficiency and profitability for your businesses.
Improved work-life balance: Calculating the value of your time assists in managing your workload and achieving a healthy balance between work and personal life.
Stronger negotiation skills: Knowing what your time is worth equips you with the confidence to negotiate service rates or contracts, ensuring you receive fair compensation for your work and time.
For entrepreneurs managing multiple businesses, determining the value of your time can be a game-changer as you utilise that knowledge to enhance your businesses' performance and personal satisfaction. Before long, you will find yourself being more efficient and making smarter decisions about where and how you allocate your valuable time in every aspect of your life.
