Notes

Calculate your Burn Rate

๐Ÿ“† Work weeks [WW]

You only have a set amount of time for work each year. If you work 40hrs per week for 52 weeks you will have 2,080 hours available each year. When you factor in holidays, sick days, national holidays and anything else how many weeks can you work per year?

WW =  48 weeks

๐Ÿ’ธ Billable hours [BH]

Estimate how many billable hours you have per week, not how many hours you work. You may spend 4 hours marketing your own business today, but youโ€™re not billing anyone for that. When you take away non-billable work, how many hours are left to bill each week?

BH = 30 hours

๐Ÿ’ฐ Yearly billable hours [YBH]

Multiply Work Weeks by Billable Hours to get your yearly billable hours

Formula:
WW x BH = Yearly billable hours
48 weeks per year x 30 hours per week = 1440 hours per year

YBH = 1,440

๐Ÿงพ Business expenses [BE]

Factor in rent, internet, electricity, software, taxes and anything else your business needs to keep the lights on.

BE = $25,000

๐Ÿก Desired salary [DS]

How much do you want or need to earn per year to have the lifestyle you want?

DS = $60,000

๐Ÿ”ฅ Burn Rate

(BE + DS) / YBH = Burn Rate

($25,000 + $60,000) / 1,440 = $59.02 (rounded to a Burn Rate of $60 per hour)

Burn Rate = $60 per hour