Small Business Owners: What’s Your Time Really Worth? | Avi Kumar

Small Business Owners: What’s Your Time Really Worth?

Here’s a question I ask every small business owner—especially solopreneurs—right out of the gate:
“What’s your True Hourly Rate?”
Go on. Take a guess.
Here’s what I usually hear:
“Oh, I charge $200 an hour for consulting, so my hourly rate is $200.”
My response?
Are you working 40 hours a week at that rate, every week?
Didn’t think so.
Then come the other classics:
“I’ve never really thought about it.”
Really?
“But I sell products—I don’t charge by the hour.”
Yes, but trust me, you still have a rate.
Every hour you spend on your business is worth something.
Sometimes I get people quoting a “real hourly rate,” based on some calculator they found online.
Which is nice, but it often still misses the point. (We’ll talk about that in a sec.)
Bottom line?
If you’re serious about running a business and not just dabbling in a hobby, you need a clear, honest number.
Because knowing your true hourly rate changes everything.
So, What Is Your True Hourly Rate?
It’s simple:
Your True Hourly Rate is the dollar value of your time.
Not your dream billing rate. Not your top-line revenue.
It’s what your time is actually worth to you, based on what you’d accept to do only the work you love.
Think of it like this:
Imagine a dream employer offers you this deal:
  • Do only the things you love (sales, coaching, product design—whatever lights you up)
  • Set your own schedule
  • Be your own boss
  • No risk of getting fired for the next 5 years
How much would they have to pay you, per year, to make that a “hell yes”?
Got the number?
Now divide it by 2,000.
That’s your True Hourly Rate.
(Why 2,000? That’s roughly how many working hours are in a year if you work full time.)
So, if your magic number is $120,000 per year: Your True Hourly Rate is $120,000 ÷ 2,000 = $60/hour.
Why This Number Matters More Than You Think
Once you know your rate, every decision gets clearer.
  • That networking meeting that takes 3 hours and brings zero leads?
    Costs you $180.
  • That admin task you could delegate for $15/hour, but you’re doing it yourself?
    You’re losing $45/hour in opportunity cost.
  • That prospect who keeps “picking your brain” for free?
    You get the idea.
This number becomes your filter. Your compass. It helps you say no faster, delegate smarter, and focus on high-return tasks.
What About “Real Hourly Rate” Calculators?
If you’re curious, there are articles online about computing your “real hourly rate” after taxes, expenses, etc.
That’s useful for freelancers or employees trying to compare gigs.
But for small business owners? Meh.
Too much detail. Not enough action.
What you need is a quick, gut-check number to drive decisions.
Your True Hourly Rate is that number.
One Last Thought…
You don’t have to be perfect. You’ll still waste time here and there. That’s life.
But once you know your True Hourly Rate, you’ll start thinking differently.
You’ll defend your time more fiercely. And over time, that changes your income, your business, and your peace of mind.
What’s your number? Figure it out. Write it down. Stick it to your screen.
If this made you think, share it with a fellow business owner who needs the wake-up call.
Let’s stop selling ourselves short.
Small Business Owners: What’s Your Time Really Worth? | Avi Kumar

Small Business Owners: What’s Your Time Really Worth?

Here’s a question I ask every small business owner—especially solopreneurs—right out of the gate:
“What’s your True Hourly Rate?”
Go on. Take a guess.
Here’s what I usually hear:
“Oh, I charge $200 an hour for consulting, so my hourly rate is $200.”
My response?
Are you working 40 hours a week at that rate, every week?
Didn’t think so.
Then come the other classics:
“I’ve never really thought about it.”
Really?
“But I sell products—I don’t charge by the hour.”
Yes, but trust me, you still have a rate.
Every hour you spend on your business is worth something.
Sometimes I get people quoting a “real hourly rate,” based on some calculator they found online.
Which is nice, but it often still misses the point. (We’ll talk about that in a sec.)
Bottom line?
If you’re serious about running a business and not just dabbling in a hobby, you need a clear, honest number.
Because knowing your true hourly rate changes everything.
So, What Is Your True Hourly Rate?
It’s simple:
Your True Hourly Rate is the dollar value of your time.
Not your dream billing rate. Not your top-line revenue.
It’s what your time is actually worth to you, based on what you’d accept to do only the work you love.
Think of it like this:
Imagine a dream employer offers you this deal:
  • Do only the things you love (sales, coaching, product design—whatever lights you up)
  • Set your own schedule
  • Be your own boss
  • No risk of getting fired for the next 5 years
How much would they have to pay you, per year, to make that a “hell yes”?
Got the number?
Now divide it by 2,000.
That’s your True Hourly Rate.
(Why 2,000? That’s roughly how many working hours are in a year if you work full time.)
So, if your magic number is $120,000 per year: Your True Hourly Rate is $120,000 ÷ 2,000 = $60/hour.
Why This Number Matters More Than You Think
Once you know your rate, every decision gets clearer.
  • That networking meeting that takes 3 hours and brings zero leads?
    Costs you $180.
  • That admin task you could delegate for $15/hour, but you’re doing it yourself?
    You’re losing $45/hour in opportunity cost.
  • That prospect who keeps “picking your brain” for free?
    You get the idea.
This number becomes your filter. Your compass. It helps you say no faster, delegate smarter, and focus on high-return tasks.
What About “Real Hourly Rate” Calculators?
If you’re curious, there are articles online about computing your “real hourly rate” after taxes, expenses, etc.
That’s useful for freelancers or employees trying to compare gigs.
But for small business owners? Meh.
Too much detail. Not enough action.
What you need is a quick, gut-check number to drive decisions.
Your True Hourly Rate is that number.
One Last Thought…
You don’t have to be perfect. You’ll still waste time here and there. That’s life.
But once you know your True Hourly Rate, you’ll start thinking differently.
You’ll defend your time more fiercely. And over time, that changes your income, your business, and your peace of mind.
What’s your number? Figure it out. Write it down. Stick it to your screen.
If this made you think, share it with a fellow business owner who needs the wake-up call.
Let’s stop selling ourselves short.
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