When I started my business I wrote a busines plan. And one of the lines in my business plan was "stay home and stay even" and it was the best rule that I ever followed.
I picked an hourly rate based on cost plus profit based on what an employee would cost per hour plus company profit, even though I had no employee's at first, cause when I finally had them, it would have been an uphill battle to raise rates. I bid jobs and due T&M work with this rate. Some jobs I bid I get, some I don't. I make payroll every week, carry a simple health plan for me and my employees and maintain my vehicles best I can and I am currently only slightly in debt to my suppliers.
Some contractors accuse me of being too expensive, I said to one "If you don't want to pay me this, then don't hire me." He didn't. 8 weeks into the project, his hired electrician filed bankruptcy, walked off the job and stiffed him for an 8 grand. Funny thing is I was only 6 grand higher than that guy.
