Are You Charging Enough — Or Just Running a Very Stressful Charity (for the tax department)?

Are You Charging Enough — Or Just Running a Very Stressful Charity (for the tax department)?

Mar 03, 2023

Let’s be honest:
Most business owners would rather clean out their inbox with a toothpick than talk about pricing.


Money talk?
Nah. Too awkward. Too serious. Too… maths.


But here’s the thing:

If you don’t know how much your business needs to make per hour to stay afloat, you might be working for free. Or worse — paying to be in business.

And I don’t know about you, but I’ve yet to meet anyone who dreams of building a loss-making empire.


Busy Doesn’t Mean Profitable

You’re running around like a headless chicken: quoting jobs, replying to emails, sending invoices, juggling delivery and admin — maybe even sweeping the floor if no one else does it.


But here’s the scary question:

Are you actually making money… or just staying busy?

If you pause when someone asks where the profit is — or why there’s nothing left after a full week of work — you’re not alone.
It’s usually not because you’re lazy or bad with money.

It’s because no one ever showed you how to do the math that matters.


The Number That Changes Everything: Your Hourly Break-Even Rate

Here’s the brutal truth:

Your business is spending money every hour, whether you’re working or bingeing YouTube.

  • Rent, insurance, software
  • Wages, loan repayments, subscriptions
  • That very expensive coffee machine you swear was "essential" for productivity

If you don’t know what that per-hour cost is, then you’re guessing every time you set a price. And that’s how good people go broke.


How to Calculate Your Business Hourly Rate (Without Crying)

Take a deep breath. This won’t hurt.
Here’s the simple, no-fuss formula:

Step 1: Add up all your monthly business costs:

✔️ Operating expenses (rent, software, insurance, power, etc.)
✔️ Cost of Goods Sold (materials, supplies, contractors)
✔️ Loan repayments, leases
✔️ Your wage (yes, a real wage — you’re not a volunteer)

Step 2: Count how many hours you actually work or bill for each month

(No, doom-scrolling Instagram doesn’t count.)

Step 3: Divide the total costs by the billable hours

That’s your hourly break-even rate.

If you’re charging less than that?
Congratulations — you’re running a wildly inefficient non-profit.


Why This Matters (Even If It Makes You Squirm)

Understanding your hourly cost helps you:

  • Price with confidence
  • Say “no thanks” to low-margin jobs
  • Stop discounting just because someone flinched at your quote
  • Sleep better at night knowing you’re not bleeding cash

What It Feels Like When You Get It Right

Imagine charging what you’re worth without feeling guilty.
Imagine knowing exactly which jobs are profitable.
Imagine not panicking when tax season shows up like a horror movie villain.
That’s what happens when you know your numbers.
It’s clarity. It’s confidence. And yes — it’s more money in your pocket.


Still Avoiding the Calculator? I’ve Got You

If working out your numbers sounds like a migraine waiting to happen, don’t worry — I’ve done this dance with heaps of business owners.