Continued from page 1
Rent $600 per month x 12 = $7200
Utilities $100 per month x 12= 1200
Telephone $100 per month x 12 = 1200
Postage $100 per month x 12= 1200
Copying $50 per month x 12 = 600
Stationery $25 per month x 12 = 300
Supplies $50 per month x 12 = 600
Upgrades $150 per month x 12 = 1800
Furniture $50 per month x 12 = 600
Yearly Total = $15,300
The yearly total comes to $15,300, divide this by 1100 billable hours and you get approximately $14 per hour. Now add this to original $42 per hour and you can see that you need to charge $56 per hour to cover your hoped for $46,000 per year income plus your expenses. If you are home-based, you can subtract $7200 per year in rent or about $6.50 per hour from $56 above.
I have made a number of assumptions in arriving at these figures, your costs may be more or less, but this will give you an idea of what to look for and how to calculate your expenses. If you have any questions, write to me or give me a call and I will go over your situation with you.
Remember, in order to be fair with yourself and your customers, your prices must reflect true cost of doing business. Do not ever apologize for your prices. You need to charge enough for you to live on and enough to stay in business to service clients that have come to depend upon you. If some of your customers can't understand this, change your customers, not your prices.
Copyright 2000, DeFiore Enterprises.
Chuck and Sue have been helping folks start successful home based businesses for over 17 years, and they can help you too! To see how, visit http://www.homebusinesssolutions.com for the latest FREE tips and tricks, educational products and coaching in creative real estate investing and home based businesses.