Out of the Crisis.Org

[Louis Altazan]

Most people regard the amount they make per hour as a measure of how well they are doing. For instance a man that earns $30.00 per hour for 40 hours might consider his circumstances better than a man that earns $20.00 per hour. Even if the man making less per hour works more hours and equals the pay of the former, he may not feel he is doing as well.

This is certainly understandable. Work, no matter how fulfilling is normally not most people’s first choice of activity. In that regard, people trade the time they have available for money. For example rather than being with their family, golfing, traveling or other things that may be considered pleasurable, most people work in return for wages.

Certainly this does not intend to suggest other work related benefits are not equally or perhaps more valuable than wages. Merely that time and money are both primary concerns and getting the most of one in exchange for the other is normally seen as desirable.

My point is this:

I believe most business owners rarely consider the amount they earn as an hourly wage. For example, a business may gross $550K per year. If the net is 25% or $137,500.00 the owner may feel this is their income. But what about time?

If $137,500.00 is earned in 2,000 hours [40 hrs/wk times 50 weeks] the rate is $68.75 per hour. If it requires 3,000 hours [60 hrs/wk times 50 weeks] it’s a little over $39.00 per hour, adjusting for overtime.

More money is always nice, but might reduction of time required to earn it also be worth contemplating?

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Louis Altazan
Owner/Manager AGCO Automotive Corporation
Baton Rouge, LA