Many Therapists that are sole traders do not know how to correctly put a monetary value on themselves and what they offer.
In this exercise, you can figure out your hourly rate based on your skills, experience and the current ‘national minimum wage’ combined.
Grab a piece of paper and brain-dump out all the skills you have, whether related to your business or not.
Be fearless in this exercise and imagine you are a self-assured person.
Once you have completed this, make a list, in order of importance, of how these skills relate to your business.
Which skill is absolutely vital? Put that at the top and follow down the list until you reach the bottom and least important skill.
Was that hard? Did you get a good long list of things? If not, do it again! Really. You didn’t get to become a grown-up without learning a thing or two.
Put it all in there until you have at least 15 items on your list.
Once you have this list of skills you can start to build a picture of all the things that make you worth something.
Now cross off anything from the bottom that absolutely does not relate to your business at all (for example if you were skilled at cutting your dog’s toenails yet you are a counsellor – maybe cross of pet-grooming). Be very cautious when crossing anything off, as sometimes even un-related skills in the bigger picture have helped us shape how we do what we do.
Look at each item on your list. If you had NO CLUE how to do this yourself you would have to pay someone. If you expected to pay per hour for this skill how much would you pay? You can use a website like Fiverr.com or similar to find out some rates for your skills if you had to hire them out.
Now go down the list and add up the numbers – use a calculator, it’s easier. Then average it out. It does not have to be accurate, just a good idea of the total if you wish.
skill 1 – people management: about £18 per hour
skill 2 – marketing: about £30 per hour
skill 3 – time management: about £20 per hour
skill 4 – design: about £20 per hour
skill 5 w- website design: about £35 per hour
skill 6 – SEO: about £50 per hour
Total is 173 (divided by the 6 skills in the example to get the average) = Average skills value is £28.83 per hour
Next, think about being an employee – what’s the minimum wage now:
If you are over 23 in 2021 – about £8.91.
Now imagine you are your own employee who has been in the business for as long as you have (including your years for learning/training too). How many years have you worked on this?
Now add 20p for every year you have worked for/on yourself. What’s the total? This is your hourly rate based on years of experience.
For example, I have worked on this business for 27 years. 27 x 0.20p = £5.40.
Add £5.40 to the minimum wage of £8.91 = £14.31 for the value of your experience.
Now add your Experience number to your Skills number
In this example £14.31 experience plus £28.83 Skills = £43.14
My Hourly Rate should be about £43.14
This gives you a good idea of the VALUE of YOU in your business, per hour. Of course, this isn’t as good as a tight financial plan of action – nor does it cover the things you have to spend money on, but it’s a good starting point.
You might surprise yourself at how much further along in your field of expertise you really are – are you better than you first thought?
Would you like to explore this further and find out more ways to delve deep into your skills, discover how not only your achievements but your failures throughout your life have real value? Find out more about how to put this learning into action in your business?
You can hone your skills, discover more about yourself and set a solid base for your business with quality Business Coaching.
Contact me for details of how firstname.lastname@example.org or join our Facebook Group