I would like to start this thread with this quoting from Active 1
posted 12-08-2004 09:19 PM
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Like others said it's less stressful day to day if you have less bills and money in the bank.
Something Else to consider- Once you take the leap to be full time by yourself it will make a difference on your ability to obtain a loan or at least at a good rate until you have a steady few good years.
If you a serious you might start the business paperwork now. That way on paper once you are full time you would have been in business for a few years. That can help you with suppliers, insurance, loan officers, and even customers by being able to say we didn't just open yesterday. This can give you time to set up your office and establish a paperwork system. If you ever do come across some big work your set up to go.
When you figure you hourly rate don't count on booking 1 hour for every hour worked. With drive time, material pick up, bidding, paperwork, returning phone calls, no work, etc. Depends also on the type of work you do.
Think of a number you need for yourself for maybe working 60 hours a week.
Say your salary is $60,000
Overhead bills $30,000 (old truck & at home office)
Total overhead $90,000
6 hour billable days is about 1500 hours a year
Your at $61 an hour
add 1% warranty, 10% profit, 15% tax and you have $70 an hour.
If you want to be like some EC, have 0 profit and make $40000 for yourself your at $48 an hour.
I'm not saying what to charge just play with the numbers and don't kid yourself with not having any overhead.
Tom
If anybody feels like going forward for the future please add this this thread as how to figure overhead costs , Time & Materials actuals for calculation Flat rate (up front pricing)Sheets please post them here
How much to add for warranty call backs etc
Thanks
[This message has been edited by dougwells (edited 08-01-2005).]
