Starting a business
Starting a business can be extremely exciting but it also can be a daunting time.
When you set up a business a thorough plan will make your dream more achievable.
Having a great idea is only half of the battle.
So, one thing you need to look at is your selling price. I always like to work this backward with clients.
So, how much would you like to earn each month?
What are your fixed costs?
How many hours do you want to work a week?
How long is the average assignment?
Say you are a web developer who does one off work. - You want to earn £4,000 per month - You have fixed costs of £1,200 per month - You want to work 30 hours a week - You take approximately 30 hours on each website
You therefore need to turnover £5,200 per month and you can do on average 4 websites a month. This means your selling price should be around £1,300 per month.