Have a new business? What do you charge?

Starting a new business is like embarking on a thrilling adventure, creating a new chapter in your life. Exciting, right? But then comes the big question: what do you charge for your products or services? Let’s break it down together.

First off, you need to cover your expenses and ensure there’s profit, not just to sustain but also expand your business. So, gather up all your expenses - rent, utilities, insurance, office supplies, even personal expenses. Don’t forget a cushion for unexpected costs, and yes taxes.

When it comes to income, especially for service-based businesses, remember, not all your hours will be billable. You’ll have non-income-producing moments like vacation, client meetings, and administrative tasks.

In my own journey, I planned for 40 work hours a week, aiming for 3 billable days (24 hours a week x 4 = 96 hours a month). The rest of the week was for other crucial business tasks. Plus, I factored in a couple of weeks of vacation.

By dividing yearly expenses by billable hours, I arrived at my hourly rate. I also researched my competitors' rates to gauge where I stood. You can choose to match their rate, charge less for a competitive edge, stick to the same price, or even go higher.

Consider what your competitors charge for similar projects - it gives you a reference point. Ask yourself if you work faster or slower than the average in your field, as this impacts how you price your services.

Remember, it's okay to adjust your pricing as you go. Start with a plan, keep an eye on your competitors, and don’t hesitate to tweak things as your business evolves.

You’ve got this! Just explore your options, make informed decisions, and keep moving forward. Your business journey is a learning curve, embrace it!