Do you pay yourself a wage as a business owner? Do you account for your time when calculating job costs?
There’s an exercise I do in a lot of my Strategy Sessions where we calculate business costs and determine your current margin (aka profit).
Whenever I ask “Do those costs include your time?” I get a lot of this action… followed by: “But doesn’t my income come from the profit of the business?”
When calculating labor costs on any job, your personal hourly rate should be counted as what it would cost if you were to hire someone of similar skillset to do the same work on your behalf. (This will be lower than the price you charge a client.)
And then you can have a great conversation with an accountant about determining how to best pay yourself a well-deserved wage! What could be more satisfying than that?