There is a recurring topic of conversation in my life right now among my women (the women with whom I surround myself on a regular basis). It seems the topic of value keeps coming up. Maybe this is because I know a lot of women who are entrepreneurs, freelancers and small business owners.   There are plenty of us who undervalue ourselves on a regular basis. I’m just as guilty as the next girl on occasion, but I’m better about it every day.

The secret formula

Years ago I had a wonderful, yet tough boss who sent me to Dale Carnegie Sales Advantage classes, where I learned some helpful tools (that I wish I could remember). There is one thing, however, that has really stuck with me all these years. It’s the rule of 2080.

Anybody know what this is?

Beuhler?…

Beuhler?…

The rule of 2080:

1. How much do you want to make this year? (Not how much do you currently make, or how much did you make in your last job. How much would you LIKE to make this year?) For argument’s sake, let’s say $150,000.
2. Divide that number by 2080, which is the number of work hours in a year. (150,000/2080)
3. The result is your hourly wage. So, in this example your hourly wage is $72.12

Why is this important?

1. It can dramatically change how you prioritize your time
2. It helps you to know your value, thus building confidence. It’s not about being the cheapest. It’s about being your best.

How can you use this information?

• Tend to be chatty (this is totally me)? If you have phone conversations that lasts an hour, but really only should’ve lasted 5 minutes you just cost yourself or your client over $65.  Or if you think you need to run to Wal-mart to get toothpaste RIGHT NOW instead of finishing a project this might help you think twice about that decision.

• If two opportunities are presented to you, and you are forced to make a decision, think about which one can pay you at least your hourly wage. You are not a charity. Don’t give it away (unless you are giving it away to a charity).

• You will help maintain the integrity of your profession. I do social media management. The experts are still trying to quantify the value of this job. People who give away what I do professionally, damage the integrity of the role. However, everybody knows that you get what you pay for. If someone hires their nephew to manage their business social media for $10/hour they are probably going to get a few Facebook updates, some tweets and not much ROI (return on investment).

Do what you know and get paid what you’re worth. My rates are not negotiable and neither is my value. I hope you feel the same.

Photo courtesy of Duncan Smith/Corbis (c)

Surround yourself with supportive women. We all have friends who have made us feel no bigger than an inch. If you have someone like that in your life minimize the amount of time you spend with that person. You can’t change them, but you can be a good example and you can set boundaries. Twitter has been an amazing source of love and inspiration for me.

Remember, too, you have to love to be loved. Be kind and supportive to others if you want them to do the same for you. This doesn’t mean be a doormat.

I hope you found this post inspiring. Please share your experiences in the comments below so that we can learn from each other.