What Is Success?Mar 16, 2022
What is success? How do you measure it?
Is it a money thing or something else? Are you successful if you are daft busy? Or have you made it if you don't have to work this month? Maybe you are successful if you feel so, regardless of your bank balance?
Peter & Paul
Peter grossed £150k last year, including £69k labour costs, whilst Paul only managed £54k in labour costs plus minimal materials.
Putting turnover to one side, when talking revenue from their labour, Peter is still richer than Paul in absolute monetary terms. However, when you use another value such as time, the same people have totally different outcomes.
Peter ( 34 ), is a grafter! Hardworking and determined to grow his business, he works 48 weeks per year averaging £1450 week! His Plumbing and Heating Business keeps him and the apprentice daft busy. With all the running around quoting, installing, servicing, repairing, and everything in between, he is averaging a 58 hour week. When broken down into relative income, Peter is earning just £25 per hour. But his overheads have bloated in recent years. Advertising on various websites and in the local community magazine is costing his small business a fortune all chipping away at his net profit. He is trying to grow a business that can afford another engineer when his apprentice qualifies.
Paul ( 42 ), however, has been there and done that.
He used to do the crazy hours just like Peter but now has built a stable little business and is happy with his easy lifestyle. Paul only works 9 months of the year.
When he is in work mode, he will work 3 days a week between 9am and 4pm. This allows him to be home for the kids during term time and take time out with the kids on every school holiday during the year.
Paul works 40 weeks a year, for 3 days, averaging 21 hours per week. He charges his customers £90 for small jobs such as boiler services and safety checks. On Average, he will do around 5 jobs a day bringing home £1350 week, £54k annually. When broken down into relative income, Paul earns £64 per hour and has minimal overheads...
Paul is Time Rich and far more profitable than Peter...
You see, he had made the mistakes in his younger years, but now rather than chasing the money, Paul focused on time.
The more time he got back, the more time he invested in his business. Because he now is a specialist in a small area of work he has been able to systemise his business for maximum relative income. He has time to do the things he likes with the people that he loves.
"What would success feel like to you?"
Know your direction!
Before we Build our Business, we need to plan what we want from life. Yes, yes, yes. We all want money and holidays and a lovely house. But some holidays and some homes are "nicer" than others and will need more money. The trouble with this is, in most cases is that collecting money for the "money" bank comes at a cost to our "time-bank".
Knowing what type of life/work balance we want right now this year and again in 5, 10, 20 years will allow us to choose a direction to achieve what we want. The keyword here is direction. Knowing our final destination will only help if this is the place we actually end our journey.
You see what is most likely to happen is as the years roll by your plans will change. This is because, over the years, people change. Your partner will change, your family may grow, your team members come and go, the industry will change, your business will change, and more than likely, so will what you want from life, you will change.
When will your business journey end?
A lot can be achieved over a 5, 10 or 20 year period.
Having direction and commitment to take the small and consistent changes month on month, year on year will take you out of the woods and towards your life goals well into retirement.
But how many years are left for your business journey?
Currently, the average age of retirement for a man is 68 years old.
How many months you have left until your 68th birthday.
Here's a rough guide.
28 years old has 40 years left to retirement = 480 months
38 years old has 30 years left to retirement = 360 months
48 years old has 20 years left to retirement = 240 months
58 years old has 10 years left to retirement = 120 months
I think its fair to say that the older you get, the more you value your time.
"Everybody is different, what is your time really worth?"
Taken from the new "Foundations First" business development day.
The first in the series for a new six-month programme starting January 2021. For more information search facebook The Boiler Business Community.