Sharing Daily Discoveries About Personal Finance And Business Topics

How Much You Pay Versus The Time You Save

I heard of an interesting scenario the other day where there was an owner of a business where he hired a full time helper which costs him about $15/hr. This was a food based industry where each customer they brought in probably generated about $5 in profit. So you essentially need about three customers per hour minimum to break even.

The thing was he was debating that since business is slow due to the economy on whether or not he should just do the work himself and save an extra $120 a day or so for himself. The drawback of course is that he would have to work longer days as before he only worked about three hours a day and then spent time with like his family.

I was just thinking how he made a decent profit still even with the employee. With that example too, does it make more sense to tie up say an extra 8 hours a day for that $120 as a business owner? I would be inclined to say I would rather have the extra time if the business was still doing well. If it was in the red then that would be a different story. I would just imagine too that while the business is on semi auto pilot that it will enable you to think of ways to make it even better.

So many people would rather be in that position too where you do have the option of leveraging your time through others the more you think about it. Seems like a waste to get rid of it if it works for you.

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