📄 How to use your Effective Hourly Rate as a razor to keep you focused on the most important activities
A concept I learned from James Schramko, your EHR is a simple yet powerful tool to help you decide which projects, tasks and activities deserve your time, and which absolutely should not.
You calculate your EHR by dividing your revenue over the last month (or quarter, or year), by the total number of hours you've spent working on or in your business. All the hours.
Maybe you earned $10.000, and you worked 100 hours, then your effective hourly rate is $100:
$10,000/100hrs = $100 EHR.
With that knowledge, you now have a very nice decision razor:
Anything that someone else can do for less than $100 is something you absolutely should not do, if there's any way you can avoid it.
Because if you spend an hour fixing a printer, and your next-door neighbour kid would have done it for $15...
You might think you saved yourself $15, but you didn't.
What you did instead, is you've cost your business anything from $15 up to $100, by not spending that hour on an activity that earns you money.
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