The little number you'll hate, then love: Revenue responsibility per hour
The little number you’ll hate then love.
There is a number I talk about with business owners that often gets them confused and a little bit upset. It's part of the language of success they still don't teach in school.
But, 20 years later, I continue to bring it up- - even though it makes owners uncomfortable.
I learned this number from my old business partner,  Brian Tracy. He's a world-renowned author and public speaker on business improvement, sales, and management.
He doesn't really mince words - and when I first heard about this number I was getting the blunt end of his shiny shoe because I wasn't hitting projections in our business. 
Here it is. Your Revenue Responsibility per hour (RR/h). We simply take your annual sales and divide it by the number of hours you work in a year. 
If I have a 1 million-dollar company and I work 2,000 hours a year, my RR/h is $500 per hour.
And this is where the confusion comes in.  I'm not telling a contractor that they have to bill their own personal work on a project at $500 per hour. I'm not saying that the owner of the business is more important than any other person in the company.
What I'm reminding you is to use your time wisely.  Because if you run a $100,0000 company, the company needs you to make sure operations are running smoothly at a $500 per hour rate.
If you like business owner brain teasers like this one, join me in Dallas so we can talk the language of success together. 

Author Dominic Rubino is the host of the CabinetMakerProfitSystem Podcast. At Wood Pro Expo Texas in Dallas, Dominic will be presenting How to Find (& Fix) the 8 ProfitLeaks in your CabinetMaking Business. Check out his site here.

About Cabinets & Closets Conference & Expo/Wood Pro Expo

The Cabinets & Closets Expo (CCCE) is the annual national event for cabinet and closet professionals and is co-located with Wood Pro Expo. The events are organized by Closets & Organized Storage and FDMC magazines respectively, both part of Woodworking Network.
The Cabinets & Closets event leads off with a full-day executive conference followed by the two-day expo featuring woodworking machinery and supplies. Additional educational programming is offered on both days of the expo. Tours of local manufacturing plants and the popular Top Shelf Design Awards reception are also key components of the event.
The 2020 CCCE is scheduled for March 11-13 at the Arlington Convention Center, Arlington, TX.
For information about exhibiting, and sponsorship opportunities, contact Patrick Filippelli of Hall-Erickson Inc. at [email protected] or phone 800-752-6312.

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About the author
Dominic Rubino

Dominic Rubino is a professional business coach focused on wood product companies. He also hosts the Cabinet Maker Profit System Podcast. Learn more about Dom at