Choosing the rates for your Virtual Assistant business can be a daunting task. Having all the necessary information before you begin this process will save you a lot of time and frustration. Consider each item below as you create rates and packages for your virtual assistant business.
Choose Your Salary
One of the best things about owning a business is the flexibility of choosing your own salary. This depends on many factors which will be discussed below. Before you move on to the next steps, choose a realistic salary for yourself. And remember, you may tweak this a few times before you set a permanent rate.
Think About Expenses
In a traditional job, certain business expenses are automatically covered such as taxes, vacation days, and health insurance. When you run your own virtual assistant business, there are expenses you will need to purchase yourself, such as Internet access, a reliable computer, online business tools, and any continuing education you may need.
It is recommended to add an average of 30% to your rate to pay for items such as self-employment taxes, and then another 30% to cover your own benefits (vacation days, retirement) and business expenses. (Be sure to check with an accountant or financial planner regarding paying self-employment taxes or other financial business questions. )
Consider Billable Hours
Running a business includes work you perform for clients or customers, and work you perform to manage a successful business. Tasks such as marketing and accounting are examples of non-billable hours. Billable hours include any time you are paid by clients for completing a task or providing a service. You may plan on working a 40 hour work week, but 10 of those hours you may need for managing your business.
Below is an example of how one may set their prices based on a $30,000 yearly salary, working 40 hours a week (30 billable hours and 10 non-billable hours).
$30,000/52 weeks = $577 per week $577/30 hours = $19 per hour
Add estimated taxes to your rate: $19 + $5.70 (30%) = $24.70 per hour (round up to $25)
Add business expenses to your rate: $25 + $7.50 (30%) = $32.50 per hour
One more very important piece of information: There is no “one size fits all” solution. Use the items above as well as the example given as a starting point.
Begin Your VA Journey Today
What are you waiting for? Now that you know how to set rates for your virtual assistant business, it’s time to get started. We offer many helpful free and affordable resources for supporting you on your own VA journey. Download our Virtual Assistant Business Forms or New Client Welcome Packet. Be sure to check out our affordable WordPress training videos and Done-For-You social media graphics as well.