I am just starting out with my VA business-in the planning stage. I have decided to start out by charging by the hour. What I am trying to decide on is how much to charge. I am thinking because I am a newbie I should charge low. I was thinking of charging $20 an hour. Feedback is greatly appreciated.
Only you can determine how much you can afford to live on. While we do not discuss rates you need to take into consideration expenses for your business when setting your rates. First off you will owe Uncle Sam money for SS taxes, as well as your state and local taxes. You also need to factor in monies to keep your business running such as marketing, promotion and general office expenses.
Just because you are new does not mean you are inexperienced. What is your background? For example I was a full-charge bookkeeper for 10+ years before becoming a VA and I have a degree in accounting so I have the qualifications to back up the service. I would not discount that rate because I have the credentials for the industry regardless of my being new to the virtual world.
Don't charge low - it damages the industry and you'll find it hard to raise your rates higher later. Do your homework, find out what is the going rate in your location, check that you have all your expenses covered and go from there. Have you done a business plan? This is essential too, to help you make sure you have all bases covered.
Billable Hour Rates
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Lily Chambers, The Virtual Office Goddess, LLC
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