Time is Money!
Money is Time!
If you need more of both, remember this principle: The higher your hourly rate or product price, the less hours you need to work or products you need to sell to meet your financial goals.
My friend Brenda Stanton is doing a free preview call This Wednesday, April 8 at 8 p.m. ET/7 p.m. CT on The 3 Keys To Transforming Your Income And Finally Enjoying Being An Entrepreneur. (You can sign up for the phone call by clicking on this link: Free Teleseminar!)
Brenda will go into much greater detail on the whole subject of transforming your mindset on money and what you’re worth. But here’s my take on pricing your services based on a time management point of view:
-How much time can you work? Honestly evaluate how much time you can spend on your business each day, each week, each month.
-How much time can you bill? If you’re in a services business, it’s not uncommon to spend at least half of your time on non-billable tasks i.e. answering e-mail, networking, bookkeeping, etc. Depending on the structure of your product business, this percentage could be similar.
–How much money do you need to make? What are your monthly and yearly income goals? What does that mean you need to make on average each week, day, and hour? Or how many products do you need to sell on average each week and day?
-How much are other people charging? Do you know what’s the standard rate for similar product and service offerings in your industry? If not, who could you ask or where could you research?
Once you’ve answered these questions, it’s time to take a hard look at your business model. Perform these simple equations:
Hourly Rate x Hours You Can Work=Potential Income
Product Margin x Number of Products Sold=Potential Income
Do the numbers add up? If not, you might want to consider raising your prices, especially if you’re priced lower than others in your market. (It’s common for service providers to bill over $100/hour to compensate for their non-billable time.) Or consider offering higher value services or selling multiple products as a package so you can make more on each sale.
If the equation works but you’re still having trouble reaching your goals, work on sales strategies to increase your billable hours or products sold.
Remember–Your time is valuable. When you treat it that way, you claim your worth.
Have a brilliant day!
P.S.–Do you need to speak with someone about how to maximize your productivity during the hours you can work on your business? Send me an e-mail: esaunders@RealLifeE.com and we’ll arrange a time to chat.
PP.S.–The 3 Keys To Transforming Your Income And Finally Enjoying Being An Entrepreneur will help you overcome your psychological barriers to making money. (You can sign up for the phone call by clicking on this link.)
Elizabeth Grace Saunders is a time management coach who empowers entrepreneurs to build businesses without burning out.
Inc magazine, NBC, and The Chicago Tribune are just a few of the places where Elizabeth has appeared, and she’s happy to be interviewed for your publication or broadcast.