Small Business Computer Consulting Appropriately Setting Your Rates

Small Business Computer Consulting: Appropriately Setting Your Rates

Summary: Small business computer consulting requires you to set rates that allow you to make a profit. Once your rates climb higher than $/hour, you'll need to move to bigger clients for your small business computer consulting.

small business computer consulting

Article Body: In small business computer consulting, $ an hour can be a reasonable and livable rate. Why can setting your rates at $ an hour make all the difference in the world?

Take the $ an hour and multiply it by , hours a year. This is reflecting a % utilization rate; or % of a typical forty hour work week as billable time. Now youre at $, a year gross.

Salary and Affordability

As a small business computer consulting firm, you will want to take a third of the gross and plow it into sales and marketing. Therefore you can afford a $, base salary for your sales account executive. So, of that one third of your gross small business computer consulting income, $, can go to the base salary and $, can go to related marketing expenses.

Additionally, one third will take care of taxes, insurance and overhead items for the most part, and you have a third of it or $, left to pay a technical staff salary.

Surpassing $ an Hour

You may be considering exceeding a rate of $ an hour for your small business computer consulting firm. At that point, you can hit what we call the not-so-imaginary-hourly-billing-rate ceiling.

Needless to say, if your small business computer consulting clients are paying $ to $ an hour, it gets even easier to be able to afford really bright, motivated, highly qualified sales and technical staff.

Higher Rates Equal Bigger Businesses

However, if you want to charge above $ an hour in your small business computer consulting firm, youll almost always need to move above and beyond sweet spot small business clients into really large small businesses, medium size businesses and enterprise-sized accounts that require a different business model and technical skill set.

Once you do that, youre going to be operating under a completely different type of business model. And you will need even more polished and seasoned salespeople to be able to handle those accounts.

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