success - Turbo Coach, achieve breakthroughs - Brian Tracy

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ally be losing money in one or more of these areas. One of
the most important things you can do in growing your business
is to determine where to focus the investment of your
time and money based on the return thrown off by this investment.
Personal Profitability
To truly analyze the profitability of your business, you must
first examine your personal rate of return.
From this personal perspective, what is your major expense?
It is your time. In Part II of this book, where we explored
how to increase productivity, we examined the
importance of your hourly rate—your annual income divided
by 2,000. By now, you should have developed the habit of
continually asking yourself this basic question: Would I pay
someone else my hourly rate to perform this task? If not,
you are failing to maximize the return on your time. In other
words, you are investing your time in an area that yields less
than the optimum rate of return. You are incurring a ‘‘loss of
opportunity’’ cost. This, in turn, affects the overall profitability
of your business.
Instill this discipline in the culture of your organization.
Like you, your people should develop the habit of ‘‘return on
time’’ thinking.
The basic rule is this: Perform only those tasks for which
you would pay someone else your hourly rate (or more);
eliminate or delegate the rest.
People Profitability
Payroll represents one of the largest expense items for most
businesses. As a business grows, it typically hires additional