Chapter 2
The one number that decides everything
Dave can price a job from the truck to within fifty dollars. He knows the cost of copper moved before his supplier does. Ask him what one hour of Dave is worth and you get "depends on the week."
It can't depend on the week. Every decision in this book leans on that number, so pin it down now. Two divisions, done tonight, on the back of whatever's in the truck.
Start with what the business pays you in a year. Salary, draws, the profit that's really wages in a costume: the honest total, not the tax return's version and not the dream. If the number's lumpy, use what a sane year looks like.
Divide it by 2,000. That's fifty weeks times a forty-hour week, and yes, you and I both know nobody who owns a business works forty. Use it anyway. It's a ruler, not a diary, and 2,000 keeps the math kind: knock off three zeros, divide by two.
Say the yearly number is $120,000. Then an hour of you earns about $60. At $200,000, about $100. Yours is yours. Write it down, in pen.
Now the strange step, and the whole trick. Take that hourly number and divide it by four.
The rest of the chapter is in the book.