How to Calculate your Hourly Rate #shorts #salaryincrease #business #moneygrowth #fypシ゚viral

Here!💰

This has been a big convo in my mastermind this week. 👯‍♀️📣 Smart girls love money math.

Wonder what your work time is worth? Understanding this is key to growing your business. It’ll help you set pricing, decide when it’s time to hire support, and feel confident when outsourcing.

Let’s break down the formula:

➡️ The equation? Your yearly revenue goal divided by the number of weeks you’ll work in a year, divided by the ideal hours you want to work each week. This gives you a clear hourly rate.

Why is this important?

1. Define Your Yearly Revenue Goal: Start with clarity. What’s the annual revenue you’re aiming for? This isn’t just about covering expenses; it’s about creating the life you want. Dream big but be realistic.

2. Calculate Your Working Weeks: How many weeks per year do you plan to work? Remember, vaca, holidays, and personal time are essential in an OOO entrepreneurs life. I start with 46-48 weeks as a baseline.

3. Ideal Hours per Week: This is crucial. How many hours per week are you willing to dedicate to work? Be honest. Overworking leads to burnout, and underworking might not meet your financial goals.

Now, let’s put it into action:
If your yearly revenue goal is $300,000, and you plan to work 46 weeks a year (taking 6 weeks off for personal time), and you wish to work 24 hours a week, your formula will look like this: $300,000 ÷ 46 ÷ 24 = $272/hour.

This number is powerful. It’s not just about charging $272 per hour; it’s about understanding the value of each hour you work. It guides you in making decisions about which projects to take on, helps in conversations with clients, and gives you a clear view of your business’s financial health.

Remember, this is a starting point. You might adjust based on market rates, your experience level, and the demand for your work. But now, you have a solid foundation to start from.

Your time is valuable. By quantifying this, you set a standard for yourself.

It’s not just about making money; it’s about making your time count, creating quality work, and living the life you envision.

I’ll be opening the Smart Girls Mastermind again next month, comment “SMART GIRLS” to get on the list!