When you write up your first business plan or even start thinking about building a business, you’ll spend a lot of time setting prices for your products or services. It’s critical to value your products fairly, but in a way that allows you to break a significant profit.
Here’s the thing: While many entrepreneurs may take their time and conduct significant research to value their products properly, they end up undervaluing or failing to value something else that’s just as important (if not more so): their time.
The importance of setting a value
Why is establishing a value for your time so important? For starters, your time is a limited resource, and, aside from living a healthy lifestyle, there’s no way to get more of it. There are only 24 hours in a day, and seven days a week, so how you spend those hours plays a significant role in how fast and how effectively your business develops.
Plus, there are some circumstances where you’ll be compensated for your time directly, such as with consulting fees, or when you’ll compensate others for time you would have spent. And, in those cases, you’ll need to set a fair price just as you would with a product.
In summary, valuing your time allows you to maximize your efficiency and get compensated fairly for your efforts (when appropriate). So, here…