How Tracking Your Time Makes You More Profitable and Successful

Do you track your time? If you don't, I HIGHLY recommend you start! The data it tells you about your work (and profitability) is invaluable. Time tracking isn't just for employees and teams! Let's explore what time tracking looks like for entrepreneurs.

The Illusion of Time

In 2018, I quit my full-time job. While in a season of transition, I wasn’t ready to start a new job yet, so I focused on my new business in the meantime.

I was extremely excited to see just what I could get done now that I had full-time hours to spend on my business.

But as the months went by and my business grew and evolved…I was still unimpressed with the overall results. I thought I should have achieved more in less time.

Fortunately, I was used to tracking my time as an accountant and had started tracking my time working on my business almost from Day 1. With a little digging, I discovered something very interesting…

I spent less time on my business as a full-time entrepreneur than I did during the peak of tax season as a full-time accountant.

This revealed a few things to me:

We don’t mentally gauge time spent on activities very well
My time management skills left much to be desired
While time spent working does not equal more success…time is certainly still a factor

Does Time Worked = Success?

Here’s an important fact that you might need to hear today: More time spent working on your business does not mean you’ll see more success.

My business wasn’t less successful after I quit my job even though I spent less time on it. That’s not why I shared that insight.

The real problem lies in HOW we use the time we spend on our businesses.

While seeing the number of hours I spent on my business before quitting vs. after quitting was a wake-up call for me, it didn’t capture the full story. Back then, I also struggled with constantly pivoting my ideas, not directly engaging with my audience to build relationships, and not focusing on creating valuable paid offers.

The fact that I was spending LESS time in my business was a sign of my DISTRACTION and poor time management. I was enjoying that “work from home” life with a little too much “home” and not nearly enough “work.”

Let’s flip this around though. I once read an email from another business owner who tracked her time. With her story, she saw that she spent less time on her business the previous month and she celebrated. Why?

Because when she looked at how she was spending that time, she saw that it was effective. She spent less time on her business AND got the results she wanted (and more). This told her that she was running her business more efficiently and could redirect her time and energy to something else she wanted to prioritize.

What Time Tracking Can Tell You

My ultimate point is this: Tracking your time equips you with the knowledge you need to ensure you’re using that time wisely.

When I started questioning my progress as a business owner, I was able to look at my time tracking data to source out the cause.

At other times in my journey, I was able to see where I was wasting time every week so that I could pursue new solutions, systems, or support to help me reclaim that time.

Working at an agency where several team members work together to provide done-for-you services to clients, we created a custom dashboard that uses our time tracking data to tell us:

What parts of the project cost the most in labor hours
What types of projects are the most vs. least profitable
How different project variables impact the work (and thus the cost) of the various contractors

Time is your single most valuable resource. And it’s a finite one at that! When you spend time on something, you don’t get that time back.

This is why it’s so important to focus on increasing the value of your time!

Personally, I think one of the best ways to start this is to track your time. Knowledge is power!

How to Track Your Time

The biggest mistake that people make with creating a time tracking habit is doing too much too soon. They overcomplicate it!

When I first started, all I did was download a free time punch-style app that allowed me to click “start” and “stop” as a widget on my phone’s home screen. It didn’t track what I was doing, but it tracked how much time I spent on my business in general.

Eventually, when I was in the habit, I wanted to have more detail. I chose to switch to Toggl, but here are several options (not affiliate links):

Toggl - This is the one I use! It's free and I find it very simple to use.
Clockify - Another popular free tool!
TrackingTime - This one looks interesting; it lets you plan your time blocks in advance as well as track in a more visual format. ($5/mo, free trial available)
RescueTime - This one is automatic and monitors your computer activity to help keep you on task. Looks a bit more complex but could be super valuable if you're struggling with time management. ($6.95/mo, free trial available)

Even if you do jump straight into a more robust time tracking tool, I still encourage you to keep it simple when you’re starting. Use broad, general categories to describe what you do.

Currently, the categories I use are:

Planning
Misc Admin
Answering Emails
Creating Free Content
Email Marketing
Product Development
Education & Training
Collaboration/Event

Then I utilize tags/memos for things like blogs vs. social media, specific products I’m creating, who I’m working with, etc. But I don’t obsess too much over the tiny details since it’s easier for me to keep up with the habit when it’s simple.

From there, it’s just about keeping your time tracking tool accessible and top-of-mind. Download the app, bookmark the web version, install the plug-ins, etc. Set yourself up for success!

What about tracking your personal time? I think it's a bit unnecessary to do this for your personal schedule in most cases, but I do think a one-off time audit of your life could be a really cool exercise to try every now and then! However, if you’re in a season of life where you really want to be more intentional about your personal schedule, by all means - go for it! As long as it’s a habit you can sustain. 🙂

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