Million Dollar Year

Lessons · MODEL · PERIOD 1 · LESSON 1.3 · 30 MIN · SAVE BY DAY 12

Owner hours

By the end of this lesson you will have a week you chose instead of one you drifted into: every task with its hours and what an hour of it is worth, one decision on each (keep, cut, automate or delegate), and the first hours already leaving your calendar, with a date.

  • A full week of your work, broken into tasks
  • A value per hour for each task, measured as revenue per hour, set beside your revenue per owner-hour today
  • One decision for every task
  • Your first move, with a date

Why it matters. The villain in Million Dollar Year is a low dollar-per-hour. It can build up without one bad decision. It builds up as small jobs land on your desk and stay there. Ranking your tasks by revenue per hour shows which hours to give away first. The Model you build in 1.4 then starts from the week you intend to work, not the one you drifted into.

Sales comes first. New leads and calls are what win revenue, so they are ranked first and handled first, always. Sales tasks sit at the top of the list whatever their value per hour.

What you need. Lesson 1.1: your weekly hours today, last month's cash collected, and last month's profit before and after your salary.

Do this.

  1. Open the Hour ranker. Coach lists the recurring tasks it found in your connected calendar.
  2. Add what is missing until the list covers a normal week. Your list needs at least 15 tasks.
  3. Enter the weekly hours for each task, to the nearest half hour.
  4. For each task, enter the revenue it wins or keeps in a year. If you cannot name any, enter zero.
  5. Coach turns that into revenue per hour, your value per hour for the task, and ranks the list. A line across it shows your revenue per owner-hour today: a year of cash collected divided by a year of your hours (48 working weeks). Revenue is compared only with revenue.
  6. Decide each task by asking three questions in order. Can it stop? Mark it cut. Can Coach or software run it? Mark it automate. Can someone do it for less than your dollar-per-hour (a year of profit before salary per owner-hour)? Mark it delegate. If the answer to all three is no, keep it.
  7. Choose your first cut or handoff, name who takes it, and give it a date.
  8. Save. The Model calculator in 1.4 reads your planned hours from this list.

Re-rank the list once a week. What deserves your hours changes as the business changes.

Done when. By day 12, the member has saved at least 15 weekly tasks, each with hours, value per hour and one of keep, cut, automate or delegate, and has dated the first cut or handoff.

Max's example

The same deliverable on his own business

Max's numbers: his own 60-hour week, day 11. The revenue credited to each task is his estimate. Revenue per owner-hour today: $480,000 a year of cash collected ($40,000 at the shown price, times 12) divided by 2,880 hours (60 times 48), $166.67. That is the ranking line. Dollar-per-hour, used for the delegate test: $444,900 of profit before salary divided by 2,880, about $154; after the $10,000 salary he set in 1.1, $324,900 divided by 2,880, about $113. Together the tasks credit $480,000 a year, equal to the cash collected, so no sale is counted twice.

Task Hours Revenue/hr Decision
Sales calls with applicants (sales, pinned) 4 $1,250 Keep
Application review and booking follow-up (sales, pinned) 2 $208 Automate, Coach replies and books
Replies to members and leads (sales, pinned) 3 $69 Automate, Coach answers on its own
Meta campaign setup and optimization for clients 5 $333 Keep
Private client calls 3 $278 Keep
Acquisition installs, maintenance and improvements 8 $208 Keep
Ad scripts and copy for clients 3 $69 Automate, Coach drafts, Max approves
Building the platform with Coach 15 $0 Keep, build phase: ends when the platform ships
Writing and reviewing lessons 8 $0 Keep, build phase: ends when the twelve Ms are written
Recording videos 3 $0 Keep
Weekly Group call 1 $0 Keep
Onboarding new clients 1 $0 Keep
Research 2 $0 Automate, Coach
Bookkeeping and payment reconciliation 1 $0 Automate, Coach
Tool and account admin 1 $0 Automate, Coach

Total: 60 hours, 15 tasks. Installs, maintenance and improvements, Meta and private calls are tied to the Acquisition line; everything else is fixed. There is no team yet, so no task is marked delegate; Coach takes every automate row. Planned hours once every move is made: 48, of which 23 are build-phase hours. After the build they end: about 25. Both are a plan, not a result. First move: new-lead replies, application review and call booking to Coach, dated day 12. Sales first.

YOUR DELIVERABLE

The form for this deliverable arrives in the next build step. The list below is what it asks for.

  • Task: a short name
  • Hours per week: to the nearest half hour
  • Revenue won or kept per year: dollars, zero allowed
  • Value per hour: revenue per hour, calculated by Coach
  • Decision: keep, cut, automate or delegate
  • Tied to: one delivery-model line from 1.2, or fixed
  • Reason: one line
  • First move: the task, who takes it, and the date
  • Totals: hours today, planned hours once every move is made, revenue per owner-hour today, and dollar-per-hour before and after salary

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