-01.jpg)
The majority of business people, when starting their business, price their products and services to what they feel the client can pay, or based on the competition's price and then wonder why they can never pay themselves.
Knowing how much it costs to live and run a business per hour will give you clarity, and if you complete the quick exercise below, it may be a shock or surprise.
Firstly, list every expense for a month in your life; food, rent, mortgage, bills, kids, etc. Then, add up all your living expenses to estimate what you need to earn as a basic wage from your business.
Then, list all your business expenses for the same month. After completing the above, multiply your living and business expenses separately and multiply by 12.
The results will be what it costs you to live and run your business for a year. So first, add these two figures together. Then divide the final figure by 365 days to calculate your daily living and business expense estimate.
Lastly, calculate your hourly living and expense estimate depending on how many hours a day you work. Again, you might like to do this separately for your living and business expenses.
If you want to dig a bit deeper after completing this exercise, I have a quick and easy guide that you can follow. Say hello via chat or email, and I will send it to you.
x Kathie
About the author:
Hey there my name is Kathie, I've been in the business world for over 25 years, steering various ventures to success with turnovers of up to 3 million dollars. It all started when I was 27, and since then, I've been fully committed to making businesses not just run but thrive. After two decades of immersing myself in product-focused ventures, I decided to take it to the next level. I launched my own business consultancy, with a clear mission: helping businesses and non-profits grow. My secret sauce? Strategic thinking and a solid commitment to seeing people not just survive but excel. I have a track record to prove it. Taking businesses from ground zero to six figures has been my specialty. How did I do it? Well, chalk it up to thinking strategically, a clear plan, consistency, resilience, adaptability, and a good old dose of stubborn determination.
I've got the scars and the stories to back it up. Like to know more? Say Hello. x Kathie