- Posted May 28, 2014 by
Cost vs. Value of Hiring a Virtual Business Manager
Hiring a Virtual Business Manager (VBM) is one of them:
• How do you want your life to look like in 3 months, 5 years? What about in 10?
• How important is to you to have time to spend with your family, dedicate it to your hobbies and not to worry about when and how everything in your business will get done?
• Finally, how much is it worth to you to double or triple your revenue every month?
Cost of Hiring A Virtual Business Manager
Leaving emotions, aspirations and potential for a business growth aside, let’s focus strictly on the cost of bringing a VBM on board.
Hiring a part-time employee, for example, at their base salary of $20,800 can cost you $33,000 and more when you count in sick time, lunch and other unproductive time, payroll taxes, administrative costs, equipment, training and overall overhead. Same goes for a full-time employee: say their base salary is $41,600, but it will cost you over $66,000 with added benefits and above-mentioned expenses.
Hiring a Virtual Business Manager, on the other hand, will come at a higher hourly rate, but since they are an independent contractor, this is also all you are responsible for paying. So if you retain a VBM for 40 hours/month at $45/hour, your annual investment adds up to a bit more than $24,000.
Please keep in mind that there is a major difference between hiring an employee and contracting a VBM and that the rates of the VBM can be higher than those listed, depending on their niche, expertise, the added value and more, and also that the rates oftentimes are not billed hourly but are project-based. However, do you see the difference in the cost alone?
Value of Hiring a Virtual Business Manager
How many days per week do you currently have to get in front of, talk to, and close deals with your IDEAL customers? Yes, days, 6-10 hours straight, if you wish, with no interruptions!
How would your revenues be affected if you had just one of those days per week? Naturally, your success will vary based on how successful you are in closing, and there are several variables in determining what the closing ratio and “successful ratio” shall be based on each industry.
But just to illustrate this, let’s say you currently talk to 10 prospects and close three of them per month, which translates in $15,000 in sales per month.
You could double, triple, even quadruple your revenues:
While your VBM whom you retained for 40 hours per month (10 hours per week) handles your business operation, manages your marketing, coordinates your team of experts (whatever the case might be), you could have 10 conversations and three closings per week. This quadruples your monthly revenue – bringing it from $15,000 to $60,000 per month!
Now, referring to the calculations form the “cost” section, you will pay your VBM roughly $2,000 to $2,400 per month in exchange for $60,000 in added monthly revenues. Moreover, this also increases your overall financial stability and well-being!
Moving from the financial aspect, how would you like to have more time to spend with your family, friends, on your hobbies, whatever it may be you envision for yourself? With your business growing, you will be able to bring additional experts on board which will allow you to specialize in a niche you already excel at and to be less involved in the details of your business operations.
And that’s the value of hiring a VBM.