This exercise forces you to think of time and activity in terms of investment and expense. It enables you to quantify what is going on in your life.
Since you are your own boss, you write your own paycheck; you decide how much that paycheck is going to be. For most business owners, this number is whatever is left.
This is a HUGE mistake; it shows lack planning and that you pay yourself last and is the #1 reason why most business owners wind up broke.
So, let’s reverse that with a little planning exercise.
- What’s your earning target?
- Divide your earning target by your work hours in a year. The result is your hourly rate.
- Times by non-billable/productive hours in your day. This is what you should charge per hour.
For example: Let’s say I want to earn $60,000 per year.
- Earning target 👉 $60,000
- $60,000 per year (÷ by 261 (working days in a year) x 8 hours per day = 2,088). $60,000 ÷ 2,088 = $28.74
- $28.74 x 6 non-billable per day = $172.44 is what I should charge per hour if I want to make $60,000
A lot of decision-making gets easier to make with this number starting your in the face because it is hard to con yourself. You will realize that you’ve got o surround yourself with people who understand and respect the value of your time.
If you don’t know how much you are worth, you can’t expect others to know it either.
Next, you want to start eliminating the need for doing tasks that don’t match your hourly rate and start delegating them. Also, don’t hang onto clients that consume far more time than they are worth.
But if you need ideas to make money online, here are 18.
7 ways to make more money online in 2020
- Provide a one time service – Consulting or doing specific tasks like posting on social media for business.
- Provide ongoing service
- Provide live training
- Teach others what you know – package your knowledge and teach others what you know with a recorded video.
- Promote other companies product using your own affiliate link
- Sell advertising space on your website
- Publish a book
If you have any questions I may be able to provide clarity and direction if we talk. Click here to schedule a zoom meeting using this link https://calendly.com/angelfanderson/video-meeting