In 1993, I started thinking about an idea that would change my life. As I sat in my big office at IBM after another rescue mission at a sales office -- this time in Michigan -- I did the math. How much, I wondered, does each person need to generate to make it worthwhile for the company to keep them around?
If you are employed, this is a particularly important equation. If you are self-employed, you already know the implications, but perhaps you haven't thought about it in quite this detail.
First, take your salary, multiply it by 1.3, and realize that you've found the number typically used for your cost to the company. That extra 30% includes things like the costs of the facility where you work, your equipment, and other costs to keep you productive.
With that total, think about this: how could you generate that kind of revenue? For the sake of conversation, let's consider a $100,000 salary, so a total revenue of $130,000. You could, for example, find 1 person who would find that total value in your doing something for them. Or two people who would find $65,000 worth of value in something that you do for them or sell them. Or 65,000 people who would find $2 of value. You get the idea.
Of course, that income would have to be above your costs for any product or service that you had to buy to satisfy them.
Are you getting the picture?
Every day, then, you must generate a portion of that value. Typically, employees work 2000 hours per year over the course of 250 8 hour days. So, you can do the math and figure out how much value you need to produce every day, every morning or afternoon, every hour. Even every minute.
There's more to it than this as you really start to look at it, but this is a good start.
Spend a bit of time with this today. It will start you on an amazing path of growth and success...
P.S. Success starts with a change in thinking. Grab a copy of Time Shaving to get yourself focused right now: http://stephenhultquist.com/shaving-book.html.
P.P.S. Don't forget to introduce your friends to this list for an opportunity for both of you to win an iPod! Have them sign up at http://stephenhultquist.com/ and then just let me know who you've invited!