There’s a myth running around out there in the self-employed world. I was reminded about it again a few weeks ago when a client was running some projections. He initially thought he could bill for 40 hours of work at a much higher hourly rate than he’s earning now in his traditional job.
It was a good idea, but billing for 40 hours of work is nearly impossible if you’re self-employed.
You Can’t Do It
Unless you have a large staff, billing for 40 hours of work leaves no time to do things like bookkeeping, marketing, following up with prospects, etc. I’ve been there though and it’s a good thought to have.
You have to get beyond the hourly mentality if you’re self-employed. You might bill by the hour, but there are many things to do in your business that you won’t get paid for. I’m writing a blog that’s free to read for instance. I don’t make money from it and I don’t plan to.
The Reality
In most cases, if you’re self-employed, expect to be able to spend 20-25 hours maximum working with clients. Plan out what you enjoy doing in business and what you want to get paid for. You can outsource almost everything else.
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