Nick HutchisonFounder and CEO, BookThinkers

What is YOUR hourly rate? #shorts

5 Aug 2022 · 1 min

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0:39

Ryan and Nick learn how to calculate your effective hourly rate as a small business owner: divide annual earnings by 2,000 work hours per year. Know this number before deciding what to outsource or who to hire.

Chapters

Ryan, as a small business owner, something I'm a little confused with is how do I calculate my hourly rate? This is really important too, Nick, because this is one that's going to help you determine your decisions. So the easiest way mathematically to calculate it is we created a formula, and you take what you make on an annual basis. The reality for most of us is if you take 50 weeks a year, because hopefully you'll take 2 weeks off, so instead of 52, 40 hours a week, you have 2,000 hours. And so you take that total earnings and then divide that by the 2,000, and you'll figure out what your hourly rate is. Which will then help you dictate what decisions do I outsource, who do I need to hire, and where is my time most valuable.