![]() Measuring time spent can help businesses better budget and estimate what it will realistically take to complete a project so they can set a dollar amount for that time. The time they spend to do the work, the time spent on the related tasks, and time to review and change what is needed are all costs of the project/job. A designer has costs to think of beyond the tangible items: an office, desk, pencils, paper. You would not expect to go to a designer and have them design something without paying them for their service. The time you spend doing your job is important to factor into the cost of doing business. What about the industries where time is your service, such as lawyers, architects, engineers, designers? They have reduced their staff and reduced their supply of food, but the small amount of business they’re able to keep up with just carryout and delivery is, often, not enough. During COVID-19, many restaurants have struggled to find ways to keep their doors open. A restaurateur needs cooks, food, servers, busboys, a restaurant space, and so on. Let’s look at the restaurant business as an example. One way to help your bottom-line is to review the costs and see what can be reduced. And then there is the cost of TIME spent to complete the job.ĭuring the pandemic, many costs of doing business are going up with less income coming in. There is the cost of the office, furniture, supplies, people/salaries, utilities, etc. The cost of items and the time needed to complete tasks are part of the ‘ingredients’ of your business. How are you going to make the cake correctly or even know if you have enough time to make the cake without more information? You also don’t have a recipe to follow: how to put ingredients together or how long to bake the cake. However, you are missing the measurements needed for each item to make the cake. Imagine trying to bake a cake and you have the ingredients pulled out of the pantry: flour, salt, baking powder, eggs, sugar, butter, flavorings. So why don’t we view the time spent to complete a project as valuable as any tangible item for the project? The Importance of Measuring Time Spent for Your Business Giving someone the gift of your time (for instance, by taking the time to visit them, to help them out with something around the house, or just to listen to them talk when they have had a stressful day) can be just as meaningful-and often even more meaningful-than buying a gift. Time is, you may have heard people say, one of the most important things that we have in our life. We use the phrase ‘time is money’ to refer to the fact that, if we manage our time well, we can also increase our earnings. Understanding where your staff is spending their time (which activities and which projects), provides you with a fundamental awareness of how your business is doing. Why is it important to understand time spent? The single greatest expense your firm endures is related to labor.
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