One of determine what. for their services charge is greatest challenges faced freelancers Many factors can influence what you ask ultimately your client account such as the quality of your work, what your competitors are charging and perceived value on the market.
your cost of doing business is also a very important aspect. For example, who have thousands of dollars worth of gear to buy much higher costs and keep a photographer needs to cover a freelance writer working on a laptop from a cafe.
While there is no easy answer to find out how much you should charge here is a simple formula that may help you get started
Freelancing formula
this formula to determine what to charge per hour .:
- determine how much you want to make in a year
- how many hours you work in a week
- Share your annual rate of 52
- Share your annual rate by the number of weekly working hours
for example, if you make a realistic $ 65,000 per year and work 30 billable hours per week need, you need to calculate $ 41.67. You could even, that, want to round to $ 45.00!
If you quote on a project, you need to estimate how many hours it's done. If it will take 25 hours, is that a project in the amount of $ 1,125.00.
Make sure that the number that you set for your annual income enough for savings to help your financial needs and cost of doing business, to meet with enough leftover by Business lulls. In the beginning you can justify very high rates not be able to, but you still have a number that you are comfortable with and reflects your value.
Also much of your business could come at the end of regular customers. It can be difficult to suddenly make significant increases to your price list, without regular repetition alienate business. Normally, a five to ten percent increase is acceptable to keep pace with inflation.
Additional considerations
Watch
If you freelancing are new your time, you may find that you constantly underestimate how long it will take to complete a project. Failure to determine the exact scope of a project, before can to earn less lead than you should, or paying for things with your time and money, which are the responsibility of the customer.
Track your time for each project to obtain an understanding of how many hours it will take you to work normally in claim do. Over time, you will be able to more precisely measure the time involved when you are presented with the framework of a project. If in doubt, it is better to overestimate than underestimate how often take projects longer than we think they are.
Do not forget the income tax!
must pay freelancers income tax directly the government, so this must be considered if they come up with a final installment. Always put money aside to pay your tax bill if you complete each project, preferably in a separate account.
Finally, note that if you are just starting your optimum hourly rate for a country can not during, but how to create a business or client list, you will have more influence to demand higher rates ,
Meanwhile, value your work and you have to ask not fear what you deserve. It could only come!
Learn more
If you think about the pricing and costing your small business, make Small Business BC prices and costing your product seminar on Tuesday, September 27, 2016 9:00 to 12:00 to learn more.
Are you from Small Business BC wide range of seminars for entrepreneurs and to take small to medium business owner? Space is limited, so do not miss your chance to register today.
And if you want to answer specific questions for your business, make an appointment with a Small Business BC Business Advisor or Small Business BC Business Plan fulfill Advisor now.
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