Valuing The Productivity and Profitability of Entrepreneurial Activity

Monday mornings are usually my favourite time to run through weekly plans, projections, expectations and targets. While thinking of what to do, if to do, when to do, and how to do, my mind often lingers back to the previous week. What did I do, why did I do it, how did I do it, and of what benefit is it to the grand scheme of my encompassing mission and vision?

So last week I spent a lot of time at the hospital running tests and examinations, making sure I have the soundness of body and mind for the work that lies ahead. I set up Social Media accounts for 2 small businesses for free, and taught them how to manage those. Volunteered for live posting and live tweeting at an APC event where Buhari met young Nigerians in Lagos. Showed up at a cocktail organised by Google for Digital Business Managers, where I met old course mates from the LBS/Google DBM Class of October 2015. Shola and I had a meeting with the guys at Vic Lawrence Associates to discuss how their online VLA staff database was going. Met with Noble and Oye at the 360 Nobs/Style Vitae office. Picked up a cheque at a client's, bought phone for my sister, got a couple of audio CDs, a pair of boots, and some clothes from Land Of Plenty (LOP). Had an interview at Channels Television.

Now, of all the things I can recall doing last week, only one has an easily measurable financial value, which is a N100,000 cheque. The cheque itself, is actually for work done last year, hence cannot be attributed to the eventual collection. Then how do we measure the value of the activities we carry out daily in relation to our business?

We've heard that 'health is wealth', but how much exactly? Building and maintaining relationships is key, but what treasure chest does it open? All that insight from brainstorming with Shola, Noble, and Oye is quite deep, though I can't tell under which item my accountant will categorise that.

I failed to mention that the client who paid me a cheque and myself had been at the ends of each other's daggers over that payment, and had just resolved to go back to working together. Since they brought in a total revenue of N1,500,000 last year, a similar figure is possible this year,  so I'd say the value of my visit that day is 5% of that, ie N75,000 since I usually maintain a 5% finder's fee for agents who bring in new or revived clients.

Going through my business files and folders, and staring unsatisfactorily at all those papers, I feel there is need for a way to value other entrepreneurial works which do not necessarily directly lead to a definite amount of money, yet could possibly or eventually yield some kind of gain which may turn out to be financial. If there's any economist or accountant out there who can do this some justice and come up with a formula, it'll save the small business world.