Services
How many of your hours are actually paid?
Part of your time is paid by nobody: admin, prospecting, quotes, training. Your hourly rate has to fund those hours too.
Worked example
2 people × 44 weeks × 40 h = 3,520 paid hours. 62% billed = 2,182 h. 1,338 h a year are paid by no client. At €75/h, you need to bill 1,981 h to cover costs, unpaid invoices and fees, i.e. 56.3% of the time: the safety margin is only 5.7 points.
Mistakes that cost you
- Assuming 100% of your time is billable.
- Not tracking your hours: without measuring, your billing rate is just a feeling.
- Cutting your rate to fill your diary, when the real problem is unbilled time.
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