Tuesday, July 11, 2006

How Much is Your Time Worth?

By Thomas Murrell MBA CSP, International Business Speaker

So you've had it with office politics, working for a bad boss and making someone else rich.

You decide to quit and set up your own business.

Before you do, you need to work out what your time is worth.

Take this typical job in PR as Communications Manager for a major company in a big city.

Here's the headline of the job in the weekend paper.

Corporate communications role, big office near a major park, full-time staff position with salary of $145k+ super

This is the job description when you first applied.

"Our new communications function plays an important role in the management of internal/external communications, reputation risk and providing expertise in community relations.

Reporting to the General Manager, Business Development, your responsibilities will include coordinating internal and external communications initiatives, including publications and the intranet; media relations, assisting in the implementation of external stakeholders strategies; providing counsel to projects in the management of community engagement; preparing speeches and presentations on behalf of senior management; and maintaining an emergency and crisis communications management plan.

Essential skills and experience require ideal candidates to have proven experience in delivering enhancements to internal and external communication. Minimum 5 years experience in external stakeholders relations is essential as is oustanding written, verbal and interpersonal communication skills."

So let's take this fictional role and compare it with what you would need to earn if you ran your own PR business.

One of the speakers I most admire, Matt Church CSP provided the inspiration, insight and permission for the basis of this article.

"Don't give up your day job, well not unless you value your time correctly," Matt says.

He says the focus is on how you value your time if you run your own company compared to working for someone else in the job mentioned above.

"What do you need to earn for the year? There are two figures to consider here; Your annual "turnover'' from fees and your specific "take home" before tax. As a simple rule of thumb, those of you comparing your income equivalent in a day job should look at an annual turnover at least double your potential professional salary. In most cases it needs to be double plus 25 per cent; the 25 per cent factors in lean running costs," Matt says.

"You should then divide the grossed up figure by 100 days and you get close to your day rate. As you play with this you can start to get clear on what you need to earn as a benchmark each time you sell what you do."

Let's look at an example: Pauline the PR professional!

Pauline can earn $145,000 a year working as the Communications Manager in the above example.

Double her day job equals $290,000 in fees (2 x $145,000)

Lets then add the 25 per cent (25 per cent of turnover) for a lean operation running costs.

She now has a calculated budget turnover of $362,500

Divide this by 100 saleable days a year equals a day rate of $3,625.

Now here is what usually happens according to Matt!

Pauline or any other professional moves out of her day job as advertised above and starts to think all she needs to do is replace her salary. Matt reckons this is "a seriously bad move!!"

"They then divide this by around 220 days a year. That's a lot of hard work for very little money."

In Pauline's case she would have a day rate of approx $650!

Now, I've even seen PR jobs advertised as low as $19.50 an hour! Why is this so low compared to a lawyer four years out from law school who earns at least $400 an hour?

I argue an effective corporate communications professional will add more value to a business than a lawyer any day!

"Don't let anyone tell you that your day rate when compared to an employee is way too high. The on costs and base costs in a business will smash you every time. As an aside, smart doctors share resources to drive down the base costs," Matt says.

According to Matt, if you don't value your time correctly 3 things will happen;

1. You will find yourself earning lots and taking home nothing.

2. You will work way too hard and not have any time to develop new business

3. You will constantly think you should go back to a day job!

"In a practice based income business model, take-home is king not turnover! So pay yourself first and don't sell yourself cheap!"

This is really valuable advice for people wanting to run their own PR, media or management consulting practice.

And how do I know? Well, over the past eight years of running my own business, I've been there and done exactly what Matt says you shouldn't do.

I was so tight for cash flow at one time, I spent the weekends renting my office carpark to football fans just so I could survive.

Fortunately, I've learnt and been able to turn my business around through fair and value-based pricing.

And of course that's the value of having a mentor or coach. Someone who has been there before and can advise on all the pitfalls.

My thanks to Matt Church CSP for his insights and I highly recommend his Thought Leaders website - http://www.australianthoughtleaders.com/


Scott Arthur Edwards said...

The fact is that the INTERNET is making people WEALTHY! Shouldn't YOU be one of them? Dear friend, I don't know about you, but I like to be free from a job and able to travel anywhere around the globe. Here is the key to doing just that...Click here on my rotation link and join me so you can be free as a bird and clear of financial worries: FIND OUT NOW!

Scott Arthur Edwards said...

Dear friend, Here is an opportunity for you that is taking over the internet. The compensation plan is second to none. The spill over will blow your mind and the educational products are of the highest quality. Knowledge is power and nobody can ever take that away from you. Join me in this business and see for yourself what you will be getting. Click here: FREE Information

look said...

愛情公寓, 情色, 舊情人, 情色貼圖, 情色文學, 情色交友, 色情聊天室, 色情小說, 一葉情貼圖片區, 情色小說, 色情, 色情遊戲, 情色視訊, 情色電影, aio交友愛情館, 色情a片, 一夜情, 辣妹視訊, 視訊聊天室, 免費視訊聊天, 免費視訊, 視訊, 視訊美女, 美女視訊, 視訊交友, 視訊聊天, 免費視訊聊天室, 情人視訊網影音視訊聊天室, 視訊交友90739, 成人影片, 成人交友, 本土自拍, 美女交友, 嘟嘟成人網, 成人貼圖, 成人電影, A片, 豆豆聊天室, 聊天室, UT聊天室, 尋夢園聊天室, 男同志聊天室, UT男同志聊天室, 聊天室尋夢園, 080聊天室, 080苗栗人聊天室, 6K聊天室, 女同志聊天室, 小高聊天室, 情色論壇, 色情網站, 成人網站, 成人論壇, 免費A片, 上班族聊天室, 成人聊天室, 成人小說, 微風成人區, 色美媚部落格, 成人文章, 成人圖片區, 免費成人影片, 成人論壇, 情色聊天室, 寄情築園小遊戲, AV女優, A片下載, 日本A片, 麗的色遊戲, 色色網, ,嘟嘟情人色網, 色情網站, 成人網站, 正妹牆, 正妹百人斬, aio,伊莉, 伊莉討論區, 成人遊戲, 成人影城,
ut聊天室, 免費A片, AV女優, 美女視訊, 情色交友, 免費AV, 色情網站, 辣妹視訊, 美女交友, 色情影片 成人影片, 成人網站, A片,H漫, 18成人, 成人圖片, 成人漫畫, 情色網, 日本A片, 免費A片下載, 性愛, 成人交友, 嘟嘟成人網, 成人電影, 成人, 成人貼圖, 成人小說, 成人文章, 成人圖片區, 免費成人影片, 成人遊戲, 微風成人, 愛情公寓, 情色, 情色貼圖, 情色文學, 做愛, 色情聊天室, 色情小說, 一葉情貼圖片區, 情色小說, 色情, 寄情築園小遊戲, 色情遊戲情色視訊, 情色電影, aio交友愛情館, 言情小說, 愛情小說, 色情A片, 情色論壇, 色情影片, 視訊聊天室, 免費視訊聊天, 免費視訊, 視訊美女, 視訊交友, 視訊聊天, 免費視訊聊天室, a片下載, aV, av片, A漫, av dvd, av成人網, 聊天室, 成人論壇, 本土自拍, 自拍, A片,

莫文蔚Karen said...

That's actually really cool!AV,無碼,a片免費看,自拍貼圖,伊莉,微風論壇,成人聊天室,成人電影,成人文學,成人貼圖區,成人網站,一葉情貼圖片區,色情漫畫,言情小說,情色論壇,臺灣情色網,色情影片,色情,成人影城,080視訊聊天室,a片,A漫,h漫,麗的色遊戲,同志色教館,AV女優,SEX,咆哮小老鼠,85cc免費影片,正妹牆,ut聊天室,豆豆聊天室,聊天室,情色小說,aio,成人,微風成人,做愛,成人貼圖,18成人,嘟嘟成人網,aio交友愛情館,情色文學,色情小說,色情網站,情色,A片下載,嘟嘟情人色網,成人影片,成人圖片,成人文章,成人小說,成人漫畫,視訊聊天室,性愛,做愛,成人遊戲,免費成人影片,成人光碟