Saturday, April 23, 2011

How to schedule your freelance work for profit

This is a straight calculation post without fluff on how to schedule your freelance work time. In this instance, we will assume you have a part-time job. The calculations are based on Working Money by Chris Brogan.

First off, set your earnings goal for the year. What do you want your income to be?

Let's say that you want to earn $80K per year.

Subtract your income from your part-time job. Let's say at a rate of $1,500 per month, your deduction is $18,000.

That leaves $62,000 to earn in your freelance work.

That's $5167 to earn per month, $1,240 per week, $207 per day.

Assuming you work 40 hours in your freelance work on top of your 20 hours at a job, that means you have:

13 hours to prospect per week, 2 hours per day

13 hours to deliver and execute on your sales, 2 hours of work per day

13 hours to provide support, or do administrative work per week, 2 hours per day.

Since you are doing actual work that pays you for only 13 hours per week, your hourly rate should be a minimum of $95/hour or more. If the freelance work that you do does not support that rate, you either need to lower your income goal, or find another type of freelance work that does. If you do fixed price work, it should use your calculated hourly rate in your estimate.

You are taking a day off and 2 weeks off in the year. These calculations reflect that.


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