How much is your time worth?
Instead of relaxing and enjoying your time in some nice places with your loved ones, you are investing your precious time in your business. Sure, you want something from it, for example excitement, recognition, and enough money to enjoy your leisure time.
That’s why it is important to give your time the value it’s worth. They say in business that “Time is Money”, and it is true. That’s why adequate prices and fees for your services are essential, not only for your business but for your life at large. Because your business has an impact on the quality of your life.
The struggle with setting fees
Setting prices or fees is a big struggle for most entrepreneurs, so if you find yourself struggling – you’re not alone!
Let’s imagine you want to set the price for a 30-minute service. How much do you charge for it?
Do you set the price based on what you believe people can afford?
Do you just think of those 30 minutes?
A thriving business needs more than this
When you set your fees for your 30-minute service, you need to consider this:
- How much time do I need before and after delivering my service? Do I need some time to get prepared, meaning that I will not be able to serve other clients in the meantime? How much money does that cost?
- Where does my service take place? In my office? Do I need to go to my client’s premises? How much does it cost in terms of time, petrol, taxi fare, etc?
- How much does my business cost? How much is the rent for my office? My staff? How much do utilities cost? My equipment? My training? My subscriptions and memberships?
- How much income tax do I need to pay? 30%, 40%, 50% or more?
- How much margin do I want? Do I want to earn just enough to pay for my business, or how much money do I need and want for a satisfying lifestyle?
- How much time do I want to work every day and week? How many clients can I honestly take care of (delivering excellent service) in one week?
By answering these questions you can find out how much money your time is worth.
Now you can think of the client
And only now.
- Who are my ideal clients? How old are they? What is their occupation? What is their income? What problems do they need to solve, that I can solve?
- How much do they need my products or services? How important is it for them? How does it help them personally or professionally?
- How much are they willing to pay to get the value that I offer? Not everyone is willing to pay for my products or services, but I don’t want “any” client, do I? I want clients who appreciate my services.
Put the two together
Now that you know how much your 30-minute service is worth, and who your ideal client is, you can start setting your regular fees and your promotional fees. Your promotions are marketing investments.
Conclusion
There are only 24 hours in a day, and so many things you can do: work, sleep, enjoy your family, drive your car to meetings, etc.
Becoming aware of how much your time is worth is the first steps to creating the business and lifestyle you want.
I wish you big success and happiness!
About the Author
Myriam Callegarin helps global corporate managers and entrepreneurs to successfully navigate the challenges of career and business reinvention. Find practical tools and inspiration in the Resource Center.
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