The EOS Life by Gino Wickman

Author:Gino Wickman
Language: eng
Format: epub
ISBN: 9781637740149
Publisher: BenBella Books
Published: 2021-07-02T00:00:00+00:00

UNDERSTANDING VALUE

Let’s say you are currently earning $50,000, and you decide you want to earn $100,000. How can you add more value to reach that level of compensation? You help more people get what they want by solving their problems. You can do this for customers and clients, and/or coworkers and employees.

Here’s a simple value equation. If you flip burgers, that’s worth about $12 an hour. If you do administrative work, that’s worth about $25 an hour. If you’re a vice president, your salary might translate to $50–$100 an hour. (In each of these cases, I’m using a 40-hour workweek to keep the math simple.) If you’re an entrepreneur making $1 million a year, that translates to $500 an hour. And if you’re a top motivational speaker, you might make $100,000 for a one-hour talk.

Let’s look at a hypothetical $10 million commercial landscape company. The people who cut the lawns might make $15 an hour. Their supervisors might make $25 an hour. The general manager might make $50 an hour, and the owner might make $500 an hour. Again, compensation is based on value.

If you cut the lawns and you want to make $500 an hour, you are not providing enough value to do so. The only way to make that much money is to become the owner. They are worth $500 an hour because they took a risk to start the business. They are responsible for the livelihoods of 100 people. They are juggling countless resources and orchestrating all of the moving parts of the business to generate a profit, and they run the risk of going out of business on any given day. If you want $500 an hour, you must do the same.

I learned economic leverage from one of my business partners, Ed Escobar. He taught me that I was crazy to cut my own lawn unless I got joy out of it. I could pay a company $25 to cut my lawn. At the time, I was making about $50 an hour and wanted to make more.

For starters, it was a “holy shit” moment when I realized every time I gave up an hour of work to cut my lawn, I was losing money. Second, I realized that by paying a company, I both freed myself up to make more money and increased my energy level because I hated cutting my lawn.

The real “aha!” was when I realized I could apply that thinking to everything I do. Starting with my personal life. I applied this to any kind of maintenance around the house. And I didn’t always have to work with my newfound time. I could also spend those freed-up hours with my wife, my kids, and my friends, or reading great personal development or business books.

That was only on the home front. I also applied this thinking to my work life. I stopped doing $25-an-hour work and delegated it to my assistant, outsourced it, or just stopped doing it altogether.

Tom Kosnik applied the same principle.

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