How to Start a Virtual Assistant Business

Professional networking is essential as well. Budget at least $100 to $300 to join associations and groups. You will generate most of your leads this way.

Some virtual assistants incur extra costs upfront to increase efficiency and professional appeal. Depending on your budget, you might opt to upgrade your equipment or software. The latest version of Microsoft (MSFT Quote) or Mac (AAPL Quote) software will ensure more efficiency, or at the very least establish a planned replacement schedule as you generate revenue.

Common Rates

There are no industry standards for pricing. VA rates vary widely depending on the individual and the services offered. Typical VA rates start around $35 per hour and range to $75 per hour or higher, depending on the service or skill level. As a general rule, common administrative tasks are on the lower end of the scale, and graphic or Web site design are at the higher end.

To establish an effective rate for your business, remember to factor in the following:

• self-employment taxes;

• sick days, vacation days;

• slow business periods;

• business expenses such as printer ink, Web site hosting, business cards, telephone costs, Internet costs, etc.

All of these are expenses against your earnings. The most fearsome to be aware of: self-employment taxes. As in any start-up, always set aside a percentage of your earnings for self-employment taxes in a separate tax account so that you have the cash to pay the IRS at tax time.

Making Your Hours

One of the perks of being a VA is the ability to make your own hours and see the time spent directly impact your bottom line. Calculate your hourly rate multiplied by the number of hours per week you'd like to work. So, if you'd like to work 30 hours, your projected revenue would be your hourly rate times 30 hours, times 4 to get a monthly figure.