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Entrepreneur's Toolbox: Get Paid What You're Worth

Get paid what you're worth without taking on too much with this easy formula.

You're a business, price it right. Use this formula to determine a rate that works for your biz.

You've finally finished your client's project. Helping to improve this individual's time management was no easy task, but you did it. Then you look at your invoice and think, "wait, that's how much I got paid? But I put in waaay more time and effort than that."

Don't worry. Figuring out the price of your services takes time and practice. There are ways to make that process go smoother and eliminate face-palm moments. Start by asking the following:

Ask Yourself: How much do I need to live? How many hours can I work before losing my mind?

We put together a formula for you. Since three's the magic number, it's three steps:

1. Determine need – What do I need to get by each week? Answer, I need about $1,000 a week to cover my rent and expenses.

2. Determine capacity - How much can I work and stay sane? Answer, I'm maxed out with meetings, emails, and designing after 40 hours.

3. Divide need by capacity - I need to charge $25 per hour at the very least.

That's all there is to it. It's what you need to live and how much you can give. The most important thing here is to NOT sell your services short, and only you can decide what the right amount is for you. Take pride in what you do and let your services show it. Remember This: You're a business just like the big guys. Price your needs and capacity accordingly.

What's in the Entrepreneur's Toolbox?

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This tip comes from Flo Hardy. Flo is a lawyer, CEO of a crowdfunding portal, entrepreneur and Founder of SmallBizFlo, a blog offering up tips for solopreneurs, freelancers and gigworkers. Hit her up with questions on aligning your work and your worth at @smallbizflo on Twitter.

The information in this article was obtained from various sources not associated with State Farm® (including State Farm Mutual Automobile Insurance Company and its subsidiaries and affiliates). While we believe it to be reliable and accurate, we do not warrant the accuracy or reliability of the information. State Farm is not responsible for, and does not endorse or approve, either implicitly or explicitly, the content of any third party sites that might be hyperlinked from this page. The information is not intended to replace manuals, instructions or information provided by a manufacturer or the advice of a qualified professional, or to affect coverage under any applicable insurance policy. These suggestions are not a complete list of every loss control measure. State Farm makes no guarantees of results from use of this information.


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