RETURN ON TIME INVESTED – ROTI
As an investor, one of the most important skills you can learn is to know and value your own time. We often think of our return on our capital employed, but how often do we really consider how much our own time is worth?
After all, time is the only truly finite currency. Once your time’s been invested, it can’t be re-collected, it can’t be reused and you really can only spend it once.
So we’re asking you – where is your time better spent? It’s a phrase we use quite regularly here at the NPP Group, particularly from our SEO Mike Aspinall.
To run a business smoothly, and profitably, means having the right bums on the right seats, working on their highest value tasks, as much of the time possibly, says Mike. When it comes to ROTI within property, it goes so much deeper than that.
Many people come into property investment with ambitions of being able to have choice, time freedom and financial freedom. All of these ambitions can remain just that if you don’t have a good team in place. Without a team in place to help you deliver your portfolio, property can become all consuming and very time heavy.
It’s normal for first time investors to be heavily involved in their first few projects, after all it’s new and exciting, they want to learn and deeply understand every stage of the property journey, but also because they don’t know how much their time is worth.
As investors evolve they become more aware of where their time is best spent, afterall when you start investing in property to have more free time and a better quality of life, you quickly learn that spending most of your time on the phone to utilities, chasing builders and dealing with tenants is quite the oxymoron. This is where having your own power team is invaluable, as it enables busy investors to have more time away from business and enjoy some of the themes they were so passionate about in the first place.
Return on investment is tangible and over time you can track the ROI on each property and understand the value of the investment. ROTI is harder to track.
So, ask yourself…If you were to put a numerical figure on how much an hour of your time is worth, how much would that be? £80, £100, more? Then ask yourself, if an hour of my time is worth £80…is my time being best spent painting the walls of my investment property in my spare time?
It’s easy to say that those that grew their business quickly simply had more money to do so. This isn’t always true. Often, people who know the value of their time and demand a great return on that time spend most of their time closing private finance and organising institutional lending, leaving their power team to sweat the smaller stuff, ultimately delivering a very high ROTI.
We know investors who are very good at the construction side of the business and get a great deal of enjoyment from being involved in that side of the business, and because of their knowledge and expertise, this is where their highest value is where it makes sense for them to spend most of their time.
Challenge where your time is best spent and what creates return on time invested, whether it’s financially or emotionally. Afterall, we can always create more money, we can sell things to create more money, sell old properties to create new pots of cash, but we can never make more time.
Think about that over the next few days, where is your time best spent? And if you find yourself in need of your very own power team, give us a call and we’ll see how we can help free up some of your much valued time.
