Guide for Service Professionals Who Charge By The Hour

Guide for Service Professionals Who Charge By The Hour

If you are an aspiring entrepreneur and running a service-based business, you may be aware of the fact to charge the clients per hour. No matter what type of service you offer, a lawyer, an accountant, consultant or designer, if you want to expand your business in a faster manner, you can use the option of charge per hour to your customers. You need to consider few basic things if you want to do that efficiently.

Pricing the billable hours

To get a good expansion of your business as an individual entrepreneur, you need to know the key factors of billable hours pricing. This is a specific method used by various service providers and the customers need to pay the money per hour with it. There are many small business owners who use this process to estimate more revenue by using maximum time of a year as a happy business house with a specific hourly rate.

The ways to charge per hour

As there is a number of options, many of the people are scared to set their hourly rate. You need to ask yourself and clear out some confusions first like:

  • What is the right hourly rate for me?
  • Is my prices are too much high?
  • Is my service or work is adequate to charge such an amount?

If you are starting up your small business venture, you can go with the known method or commonly used strategies of pricing as you are settling down your price per hour.

If you are an expert in your relevant field and have huge experience, you can learn the way to get huge revenue from hourly service and can increase the cash flow.

If you want to maximize the revenue and growth of your business, you can go with the right ways to boost up the sales.

An hourly rate is the most common strategy of pricing for the consultant and freelancers and the most convenient way to earn more money.

You should determine your exact hourly rate reverse engineering the last salary of a professional. If your last yearly salary was $7000 with a rough 2080 hours of work, you can set your hourly rate $33.

Things to remember

But while you are making a decision on the hourly rate you need to keep in mind number of things. Do you need to consider the hours of loss like what will do if you have the clients as per your assumptions? What to do if you are sick and not able to work on your working hours?

You need to consider the total benefits and comp like your health insurance while settling up the hourly rate because you will work as an individual and you have to pay the amount by your own and there is no company is associated with you to pay the money.

Working on an hourly rate is a smart idea of today but you need to be very careful while you are starting your solo business as a consultant, freelancer or anything else on an hourly rate so that you will be able to maintain the cash flow in your business.