How to Price Your Services as a New Business Owner is one of the biggest challenges beginners face, and I completely understand why. I’m a wife, a mom, an ABA professional, a photographer, and a website template designer, and I’ve been through the same overwhelm you’re feeling right now. I created this guide to help new entrepreneurs understand how to price your services without guessing, stressing, or underselling yourself.
A Quick Hello (And Why I Get It)
Hi! I’m a wife, a mom, an ABA professional, a photographer, and a website template designer who has spent years working with people, understanding behavior, and building systems. I created this blog to help new small business owners understand how to price your services without guessing, stressing, or underselling yourself.
My professional background is in ABA (Applied Behavior Analysis), which means I naturally think in steps, patterns, and behaviors. And honestly? ABA is useful far beyond therapy rooms — it applies beautifully to systems, business routines, pricing decisions, confidence building, and everyday life.
Photography became a passion for me in middle school, and in 2020 I made it official and legal. Later, in 2024, I started building website templates, and officially opened my design shop in April 2025. I’ve worn many hats, juggled many dreams, and faced the same fears every new business owner has.
And that leads us to the question almost EVERY beginner asks:
How the heck do I set my prices?
Because let’s be honest — we all see other business owners charging rates that make us think:
“THERE IS NO WAY anyone would pay me that.”
But here’s the truth…
Pricing is not a mystery.
Pricing is a simple formula.
And I’m going to walk you through it step-by-step.
Why Pricing Feels So Hard
Pricing feels emotional because:
- You’re new
- You’re scared to charge “too much”
- You don’t want to scare clients away
- You’ve never been paid for your skills before
- You compare yourself to people farther ahead
- You don’t want to feel greedy
- You don’t want judgment
- You don’t yet trust your value
This is normal.
You are not alone.
Every business owner starts here.
But emotions aside — pricing is math.
And math keeps things fair, not scary.
Let me show you.
Step One — Add Up Your Business Expenses
These are things you pay for because you run a business.
Examples:
- software
- subscriptions
- website hosting + domain
- email platform
- equipment
- office supplies
- travel, gas, tolls, mileage
- legal fees
- education
- printing or packaging
- marketing tools
- storage
- programs
- branding tools
If you’re not sure what counts as a business expense, this beginner-friendly guide from the IRS is extremely helpful:
👉 https://www.irs.gov/businesses/small-businesses-self-employed
Here’s something that helps many beginners:
Simple Resource Option — Etsy Templates
Etsy has many easy-to-use Excel and Google Sheets templates for tracking your business expenses and income. Just search for:
- “small business expense tracker”
- “income and expense spreadsheet”
- “Google Sheets budget template”
These templates are affordable, simple, and created by other small business owners — perfect for beginners who want something done-for-you.
Step Two — Add Your Personal Expenses
Your pricing must support your LIFE — not just your business.
List things like:
- rent or mortgage
- utilities
- car payment
- groceries
- savings
- childcare
- medical needs
- phone + internet
- personal debt
- insurance
Not sure where to start? This free budgeting tool is great for getting a simple overview of your personal expenses:
👉 https://smartasset.com/budget-calculator
Step Three — Add Business + Personal Together
This total is the minimum monthly income you need to keep your life and business running.
Formula:
Business Expenses + Personal Expenses = Minimum Monthly Income Needed
Example:
$1,500 (business) + $3,000 (personal) = $4,500 minimum monthly income
THIS number is where your pricing starts.
Step Four — Decide How Many Hours You Actually Work
Be realistic.
You do not work 40 hours a week on paid client work.
Most beginners only have 10–15 billable hours each week because the rest goes to:
- admin
- emails
- social media
- editing
- client prep
- learning
- building your systems
- marketing
- writing
- updating your website
- planning
- bookkeeping
Once you know your true monthly hours, you can calculate your minimum rate.
Step Five — Do the Math
Formula:
Minimum Monthly Income ÷ Hours You Actually Work = Minimum Hourly Rate
Example:
$4,500 ÷ 60 hours = $75 per hour
If that number feels high or scary, that’s normal.
That’s mindset — not math.
To double-check your numbers, use these beginner-friendly calculators:
👉 FreshBooks Hourly Rate Calculator: https://www.freshbooks.com/hourly-rate-calculator
👉 Shopify Profit Margin Calculator: https://www.shopify.com/tools/profit-margin-calculator
These tools give you a clear starting point so you’re not guessing.
Step Six — Adjust for Taxes, Time, Skills, and Profit
After you get your minimum rate:
- add tax
- add profit margin
- add time involved
- add experience level
- add your skill set
- add the value of the transformation you provide
This turns your minimum rate into your actual rate.
Step Seven — Create Your Packages
Once you know your hourly rate, you build packages that:
- cover the time you spend
- cover your experience
- cover your costs
- give you profit
- feel aligned with your goals
Now pricing becomes confident, fair, and simple.
Helpful Business Resources for Beginners
If you’re still in the early stages of setting up your business, the SBA has a free, easy-to-follow starter guide for beginners:
👉 https://www.sba.gov/business-guide
If you’d like free guidance, templates, or a mentor to talk to, SCORE offers no-cost support for small business owners:
👉 https://www.score.org/
Final Thoughts
Pricing your services doesn’t have to feel scary or confusing.
You’re not charging for “time.”
You’re charging for:
- knowledge
- skill
- time
- education
- experience
- tools
- software
- equipment
- planning
- energy
- labor
- communication
- process
- results
And most importantly — you’re charging to build a life that feels good.
If you want help building your small business with clarity and confidence, you can explore my services page here:
👉 www.thekindledsoul.com
You’ve got this. And I’m cheering you on the whole way.
