Improve business productivity by calculating YOUR hourly rate

As a busy CEO or business owner, it often feels like you’re trapped on a hamster wheel and the faster you charge through all the things you need to accomplish, the faster the wheel goes and the more stuck you feel… It’s a problem that’s all too common. Luckily, it’s easy to fix when you get the right support and start delegating.

The first step is calculating the true value of your time as a business owner or leader. Only when you know YOUR hourly rate and the value of your time can you start making well-informed decisions to delegate effectively – a key factor in successful growth and improving business productivity. 

A study by Gallup found that business leaders who are good at delegating tend to see their companies grow 33% faster and make more money than those who don’t delegate well. 

Getting help isn’t only a ‘nice to have’, it’s an essential part of being productive in business and therefore becoming more profitable. Outsourcing or hiring may feel like a big investment, but when you start seeing the true value of your time and seeing what the cost of NOT having the right support in place is, you’ll soon change your mind… 

How much is your time worth as a business owner or CEO? Calculate your hourly rate to find out…

To put things into perspective, here’s an example we like to run through with our clients here at Virtually Priceless. This exercise is a great lens to help you make informed decisions so you know where to invest in your business – 

Let’s say you’re running a consultancy and your personal charge-out rate as a principal is £2,000 per day. Across 8 hours that means your hourly rate is £250 per hour.

If you don’t have any admin or PA support in your business, you are likely spending at least 2-3 hours a day (but probably a lot more) on basic admin. This covers tasks such as managing your diary, replying to emails, trying to run recruitment campaigns, posting on social media, and the list goes on… 

Not forgetting the vital business development activities that move your business forward, which currently you’re only getting the odd hour to spend here and there (if you’re lucky and not already too exhausted). 

So that time you spend on general admin is costing you at least £500 – £750 per DAY. Over a working month (on average 20 days), that could be costing you in the region of £15,000 per month. 

Even if this example doesn’t fit your particular situation, you can still use this format to calculate your hourly rate (and therefore the true value of your time as a business owner). 

Is a VA a worthwhile investment for your business?

One of the first questions people ask when considering hiring a virtual assistant (VA) is, “How much does it cost to hire a virtual assistant?”. As a business owner, it’s completely understandable that you want to maximise your investment opportunity and make sure it’s worthwhile to improve business productivity. 

So, let’s do the numbers for you… Following on from our example, here’s how to calculate the cost-saving potential of hiring a virtual assistant to free up your time. 

You can hire a VA to pick up all of that admin for you at an hourly rate of £45. They’ll probably get through it more quickly than you, as they have the specific skills and experience needed. 

Sticking with the same hours (3 hours a day for 20 days each month) comes in at a much more sensible £2,700 per month. Can you now see how delegating tasks to a VA doesn’t seem like such a huge investment, but instead a no-brainer business decision? 

Get more time to work ON the business and generate extra revenue

You may be thinking “But I can’t possibly spend every moment of my day delivering client work and earning that sort of money”. And it’s true – you can’t, and shouldn’t. 

What you should be doing is winning more work, hiring team members who can deliver that work for you, and focusing on the bigger-picture tasks. In other words, start working ON the business rather than IN it. 

If you’re stuck in the weeds and drowning in admin, you’re not only halting your business growth, but you’re also at risk of burning yourself out. Rather than focusing on the initial cost, look at the impact hiring a VA can have to improve business productivity. You will have more time, energy, and focus.

Imagine if you spent just 2 hours a day on GROWING your business – creating marketing assets, networking, attending industry events, participating in speaking events, or developing products or services for your clients – and the wheels kept turning while you were away.

Business development is essential to generating extra revenue, which is the backbone of any successful business. Now you have calculated your hourly rate, can you afford NOT to have the help? 

Hire a VA to become more productive and see faster business growth

Calculating your hourly rate as a business owner or CEO is the first step to helping you delegate effectively, improve business productivity, and grow your business with ease. 

Are you feeling inspired to boost your business by partnering with a virtual assistant? Our dynamic team, with corporate backgrounds and top executive experience, is ready to help your business grow. Book a free discovery call with Virtually Priceless to get started.

Or if you’d like help working out the business support you need, take our short quiz here first.