After looking up how to come up with an hourly rate, I was firstly astounded when the most common advice I could get from the interweb goes something like this.
- Decide how much net profit you want to get. (e.g. $200,000/annum)
- Add annual expenses. (e.g. $60,000/annum)
- Decide how many hours you want to work in a year. (e.g. 2000 hours which work out to be approximately 8 hours a day, 5 days a week, 50 weeks a year)
- Divide desired profit by desired working hours. (e.g. $160,000 / 2000 hours = $80/hr)
I was secondly astounded that the same applies whether you’re a one man show or a multi-billion dollar corporation.
Go figure.
