I’m sure you’ve heard the expression “bang for your buck”, and as moms and entrepreneurs paying for everything from groceries and car repairs to websites and production runs, we certainly want the most bang for our buck.
But have you ever thought about your “buck for the bang”? That is, the hourly income you earn from the hourly time you invest in your business? Until recently, I hadn’t given it much thought.
The Big Idea
Over the past few weeks, I’ve been hashing out a new service for mom entrepreneurs that’ll help them get in the media and sell more, a “one-two punch” media and sales campaign. I’ve been talking about it with my friends and colleagues, and soaking up their feedback.
Meet James, hole poker extraordinaire
So of course, I emailed my friend, James Chartrand, and gave her the basics of my idea. Because more than writing, drinking Shiraz or ice skating, James loves talking business strategy, poking holes in plans and playing devil’s advocate, and she’s damn good at it.
James liked my idea, but challenged the execution of it. She wanted to know exactly what would be involved, how much time it’d take me each day and what my pricing would be. She suggested I write down on paper every part of the service I’d be performing, how much time it would take me on a daily & monthly basis, and my anticipated monthly income for this service.
So I did.
Wherein I Calculate My Buck For The Bang
I discovered that, combined with my current obligations, my new idea would add an extra 15 hours of work each week and an extra 60 hours each month. Then, I took the amount I planned to charge for this service and divided it by the number of monthly hours I’d be working on it.
Gulp. That number looked damn near minimum wage.
After calculating my buck for the bang, I realized that I’d have to completely rework my idea, reconsider my pricing and look for things in my schedule to eliminate, automate, streamline or outsource.
Man, was I glad I took James’s advice before launching my big idea…
Knowledge Is Power
So why should you know your buck for the bang? Because if you’re super honest and track everything you’re doing in the name of business, you’ll know if you’re spending your time wisely and pricing your products and services correctly – and if you’re not, you’ll also discover your biggest time sucks (compulsive email checking, anyone?) and opportunities for improvement.
You see, when it comes to productivity for mom entrepreneurs, it’s not just about getting the most stuff done in the workable time you have. It’s about earning the most income from the stuff that you’re doing during those precious hours spent away from your family, raising your “other baby”.
Once you calculate your buck for the bang, you’ll know if you’re on the right track or if, like me, you need to rework, reconsider and rethink how you’re spending your time and running your business.
Come on…try it!
First, download and print this nifty Buck For The Bang Worksheet.
Then, each day for the next week, I want you to track the number of hours you work, and by work, I mean everything you do in the name of business and revenue generation – checking & answering email, selling in person and online, producing products or content, consulting, social media networking, handling customer service, tracking down receivables, attending trade shows, fulfilling orders, networking events, training employees, paying bills, etc – and record them in the “Daily Bang” fields on your Buck For The Bang Worksheet.
Then, add up the total number of hours for the week and record those in the “Weekly Bang” field on your B4B Worksheet.
Next, take your revenue for the week and write it in the “Weekly Buck” field on your B4B Worksheet. Then, divide your Weekly Buck by your Weekly Bang.
Voila, your buck for the bang.
How do you feel about that number? Are you shocked or elated? Are you earning top dollar or minimum wage for your work? Tell us in the comments.