I am surprised how many small businesses do not calculate their hourly rate. When you are self-employed you are not automatically paid:
Long service leave
Operating costs – petrol, insurance, etc
Marketing Costs – advertising, admin
You need to pay yourself these items. You often need to include:
In your hourly rate. Usually you need to double the hourly rate that you have come up with.
For more info on hourly rates, contact Andee Sellman from OneSherpa or Business Enterprise Centre. I am available as a consultant and have experience in small business ownership, management and basic accounting.
Tips for small business:
Write a Business Plan before you start
Write a Marketing, Communication and Financial Plan included in your Business Plan
Get an accountant, or hire, contract to, Jims Bookkeeping
Decide on your hourly rate NOW. If you have already, consider doubling it.
Many first starters are low in confidence and do not charge their worth.
Speak to a business coach
or mentor, look at what the competition are charging
Write the price list now based on your hourly rate. Keep a copy in front of you.
Hire a consultant such as myself or business coach. I can connect you with one.
How much should you charge – article from Yahoo Small Business.