How do I place a dollar value to my time spent on an activity?

When running a business, how does an individual value his or her time in order to evaluate whether certain activities are valuable? Granted there is no cookie cutter methodology to this, but what are some general methods to approach this issue?How do I place a dollar value to my time spent on an activity?
I think it would be easy ... charge what people are willing to pay. If you get more business than you can keep up with, than you're not charging enough. If you are begging for customers maybe you need to lower prices. If you're just starting out you start out low so people will try you out. And as you get better and people begin to like your services you raise the prices a little so you can actually make some profit.How do I place a dollar value to my time spent on an activity?
It depends on what type of business you are doing.


My advice would be to be more detailed about what type of business your are doing then you might get some good answers.


In the mean time I would suggest you check out what it costs to have what ever it is done at what ever business you are choosing to go into.......go check out those price lists that will at least put you on the right track.
I'm really not sure what you are asking, but are you talking sales strategies, manufacturing processes, administrative tasks or what?





Anything that has no possibility of creating a return is considered ';overhead'; and you want to keep that to a minimum. In other words the least man hours and associated costs. Wasted square footage you are paying for, drive time, utility costs, etc.--everything needs to be examined to see if you are doing it as efficiently as possible. If you are the business owner, and are willing to do tasks as part of your normal day that you would otherwise have to pay a person to delegate them to, and you have the time to complete them without distracting you from your priorities, it's ok to cut costs by pitching in. But if you find yourself doing menial tasks at the expense of making sales calls and being more productive (and bringing in more revenue), then by all means get a lower paid staff member to do tasks that you can delegate.





If you are talking about whether or not a particular conference, retail location, advertisement, or other sales/marketing strategy is working, you need to try and measure the return you are getting vs. what it is costing you to apply that strategy. If you've done it several times and aren't getting results, it's time to stop doing that and try something different. Also, if your business is in any way seasonal, examine your strategies to see if you are looking in the right spots to catch market trends that may change--put the unprofitable approach aside, but consider coming back to it at a more opportune time of the year.





Your time as in individual is your monthly salary divided by how many hours per month that activity is taking you + any other associated expenses - any income generated. If you are new in the business and not taking a salary yet, then just use the expense vs income figures as best you can, but realize that your time can't be worth nothing forever.

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