Do you know your hourly rate? I was a time waster. I use to sit down for business time and had no direction or focus and would just scan Pinterest or Facebook. The hour I blocked would run out and I would just shrug my shoulders and say “oh well, I’ll get to those posts tomorrow” DUMB. Have you ever heard the expression “time is money”? Well until you know how much wasting time is costing us it’s not really real and doesn’t really matter. I didn’t know my hourly rate.
Well, I figured it out! And when I realized my time is worth $80 an hour, you better believe I don’t F around on Facebook anymore.
What is my hourly rate? That’s a tough question when you are self-employed…easy when you have a boss who decides it. Have you been trying to figure out how much to charge for your hourly coaching session? Have you been trying to outsource and delegate but are having a hard time letting go? When you know your hourly worth it is a lot easier to figure out what to charge and what is not worth your time (but someone else’s).
But how? Ya, I had no idea either. I took a video course from Ruth Soukup “Daily Productivity Guide for Bloggers” and took her teachings a little bit further. Just like my “How Much Time Do I Have?” worksheet, she suggested we start at the top and work our way down. I created a worksheet to walk you through the steps and took it a couple steps further to really drill down. Click Here for your copy!
Start with your goal income. For some reason, everyone loves the round number of $100,000. To me, making $100,000 a year means nothing if I don’t have time to enjoy it…so the next priority is how much vacation time you want to take per year and how many hours a week you are willing to work.
Since I already have a “real job” I picked vacation time that would match corporate America. If you have a busy deadline season you may want to add a couple more vacation weeks from your side business to fully focus on your full-time job. You may already be working full time for yourself, in which case have at it!!
I selected 50 hours a week to work, 40 for my full-time job and 10 for my business. The rest is just math! In my worksheet example, I came up with $40.82. Let me throw a wrench into your system now. How do you figure this all out when you are already employed and someone else dictates your pay? Don’t worry those calculations are in the worksheet too! I got you covered!
Ok, so what do you do with this information? SOOO MUCH!! First, next time you get lost down the Pinterest rabbit hole when you are supposed to be working on your business…was it worth $80 an hour! F@$K NO!
When you skip working on your business to clean the house was it worth $80 an hour!?!? UM no, my housekeeper is expensive but still only $20 an hour. Or better yet, my husband and kids are FREE when they do chores!
If the hourly rate seems way too high, you could use this number to reassess. You may need to work more hours your first year or you need to set a more realistic goal. Or…you need to figure out another way to make money.
Knowing these numbers also helps you really focus on your goal income. If I need to make $40,000 in my blog business how am I going to do that? Affiliate marketing? How much? Ads on my blog? How much to do I want to make on ads? Maybe you want to offer coaching services?
Doing this process actually made me realize that offering VA services to supplement my blog income would really be a great side income for me. I really enjoy working with others. I need socialization!!
But say I only have 20 billable hours a week I can devote to my services because I need the other 20 hours for preparing for coaching appointments and all the other behind the scenes stuff that goes along with a business. So let’s do the math…
$40,000 / 48 weeks (I want 4 weeks off a year) = $834 a week. The average VA rates I am seeing (for new VA’s) is $15/hour.
$15/hour x 20 hours=$300 a week. That means my blog would need to bring in $534 a week to reach my goal income. Next, I would look at the average number of products I need to sell and figure out a balance. Would I rather spend more time doing VA work or selling more products?
As woman entrepreneurs, time is our most important resource. We have a million hats to wear and we want to be able to do it all. The only way we will be able to though, is if we use our time wisely. I hope this helps you weed out some things on your list now that you know how much your time is worth.