Stop Doing $50-an-Hour Work

Last week we ran a training for our Boardroom members on hiring an Ops Manager or GM and bringing stronger operational and admin support into the business. 

During the session, we showed them two simple calculations that completely changed how they viewed their time. 

The first was Dan Martell’s buyback rate – what your time is actually worth.  

It’s your annual salary divided by 2,000 (50 weeks x 40hrs / week).  

So if you pay yourself $200,000 a year, your buyback rate is $100 per hour. 

That means any task you are still doing that could be done by someone else for less than $100 an hour should be bought back as quickly as possible. 

Admin. 

Inbox. 

Chasing the team. 

Formatting documents. 

Project follow-up. 

Low-level coordination. 

You get the idea.  

Then we looked at their strategic hourly rate. 

This is your annual net profit divided by the number of hours you spend on strategic work across the year. 

So if your consultancy makes $1M a year in net profit, and you spend 8 hours a week on strategic work, that is 400 hours a year. 

$1,000,000 divided by 400 = $2,500 per hour. 

That means one extra hour of strategic time is potentially worth $2,500 to the business. 

Now take that a step further. 

If you use the buyback principle to free up 10 hours a week, that gives you another 500 hours a year to spend on strategy and big picture.  

500 hours x $2,500 strategic hourly rate = $1.25M of opportunity to your business.  

Buy back your time for less than $100 per hour and unlock $1.25M in business growth potential 

(You do your numbers now). 

That’s what really hit home for our clients. 

The issue is not that you need more time. 

The issue is that you are still spending too much of your time on work someone else should be doing. 

So the question is: 

Where are you still doing $100-an-hour tasks that should be freeing you up to do $2,500-an-hour work? 

To your success, 

Josh 

PS: If you’re interested, here are 4 ways I can help you right now: 

1.  Grab a copy of my new book | Profitable Engineering Consultant | 9 strategies to grow with confidence, get your time back & consistently hit 30% plus net profit margins – Click Here

2. Subscribe to our podcast | Learn how to run a more profitable consultancy and grow successfully – no fluff, just actionable and practical advice from someone who grew a consultancy to $30M and exited successfully – Watch Here or Listen Here + make sure you subscribe! 

3. Download our free Business Plan template | Map out your Business Plan & grow your consultancy with confidence – Click Here to download now 

4. Book a 20-minute Business Audit Call | We’ll do a full review & audit of your business, uncover the #1 bottleneck that's holding you back right now & develop a 3-step action plan together for how you can get results faster. You'll leave this call with a clear and actionable plan for what to do next in your business – Book Here