My scope as a business coach and mentor in the Jerusalem area brings me into contact with a wide range of commercial operations. One theme that has come up a few times just recently is the issue of how to value time. And it ain’t that simple, especially if you are a small business.

Here are two case studies:

Let us call the client Barbara. Now Barbara has been providing a successful internet business for some years. Without a formal method or defined business model, the work has flowed in…that is until the flow of new clients dried up unexpectedly. Ouch! It is funny how in business people only turn to coaches in the bad times, where as in sport the opposite is true. I was duly summoned.

It became apparent that Barbara did not have enough time to spend on her commercial operations. Initially, she blamed the time she was required to spend at home. She really is a great, dedicated family woman.

However, further digging revealed that Barbara also likes spending her time helping others, day and night. People seek her out. They value her empathy and counsel. And she gives whole heartedly.

So, I challenged Barbara to limit the role of advice-giver to 30 minutes a day. Within a week, revenue was on the move upwards. And, interestingly enough, all those who needed to speak to her, still found a way to share their burden with Barbara.

In a separate case, David is setting up his business. The temptation is to charge low and haul the first set of customers through the door. This is an empirical formula, internationally accepted.

However, I challenged David to commit to how many work hours he wishes to invest in an average month of work. I then asked how much he wanted to bring home. And finally came the killer question: Of those hours, how many will truly be directed towards producing the service for the clients?

In other words, after all is said and done, how much time will David have to dedicate towards “working the customers”? In simple terms, if David wants US$200 a month and he only has one client for two hours, he has to charge US$100 per hour. Anything less, and he is not achieving his aims and may be making a loss.

Obvious? Yes, when written like this. So why do so many new businesses try to break the rule and thus end up with serious cash flow problems?

The punch line is that time is all around us, like air, yet seeming intangible. That is why many do not fully appreciate it…….at their commercial peril. Value your environment and that includes the time capsule in your very grasp.