It's time for a frank discussion ... do you value your time appropriately? I'm not talking about making the most of your days and doing the things you love - that is for the coaches of this world. I mean in money terms (obviously). When you are pricing your services and products, do you put a proper price on your time, your skills, your knowledge? Chances are you don't as it's human nature to undervalue our own skill sets and their worth.
There are several factors to consider when costing your time and they apply whether you are selling services or products:
- You won't be 100% productive - there are lots of tasks you will need to do within the business that aren't directly income related i.e. admin, marketing, emails etc etc. So work out what percentage of your time is income generating as these are the hours you need to price up. As an employee you might have been paid £20k for working a 40 hour week, but if you are only income generating 50% of the time you need to factor that into hourly rate calculations.
- All businesses have a base cost that must be paid for every month i.e. insurance, software, phone bill etc. If these cost you £2,500 a year then your £20k actually needs to be £22,500 instead.
- Check out the competition! Usually I am a massive advocator for "eyes on your own mat" as watching the competition for too long can destroy you and give a massive dose of imposter syndrome too. But occasionally it can be good to peek and see what they are up to and sense check that you are in line with others in your industry is always useful.
Our sales target template helps you to know what income you need from your limited company to get the income you need.