Work without profit

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When providing services, the generally accepted profit margin is 15-20% of the budget. If you really want to get into the project, you can reduce the profit from 10% of the budget. Working without profit is a dead end. Without it, there will be no opportunity to develop your own business, invest in your education, replace equipment, etc. Creating your own website, which potential clients will visit, is also impossible without profit.

Some people think that a freelancer is not a company, he does not need profit and cannot have it, he should take money only for work. This is a misconception. Work without profit leads to bankruptcy. A freelancer should be considered a one-person enterprise.

Reduce budget without justification

Budget reduction must be justified. It is wrong when the client wants to get a discount in this way. If you agree to a reduction without reducing the scope of work, the client considers your budget to be inflated without sufficient grounds.

Any reduction in budget must be accompanied by a reduction in the scope of work.

Reducing the project budget

Don't include all expenses

Freelancers believe that their new zealand email list expenses are made up only of their personal time to complete a project and do not think about other expenses. They work a lot, but their earnings are small. The reason for this situation is that their prices do not include the following expenses:

For equipment depreciation. During work, the computer, speakers, headset, keyboard, mouse, printer, furniture, lamps, clothes and much more wear out. The total costs of the said "equipment" can be significant for a freelancer. It is necessary to take into account the costs of furniture, equipment in the budget, and reserves for equipment maintenance are created from these amounts. With the right approach, you will not have to look for money, take out loans in the event of a sudden computer breakdown.

For taxes. When working without registration, taxes must be included in budgets in advance. After legally registering your work (for example, when registering an individual entrepreneur), you will not have to raise the cost of your services for customers. Paying taxes is an important expense item. Even with insignificant income from freelancing, they must be taken into account.

For advertising and promotion. Paid promotion is allocated 3-5% of the budget when working at high rates and up to 10% when working at low rates. If you work only with your immediate circle and do not manage sales, then there may be interruptions in work and business development will slow down.

For training. The value of any specialist depends on the level of his professional knowledge. There is a lot of information in free access, but the most modern and valuable knowledge is acquired at conferences, seminars, forums and good courses. By losing your qualifications, you lose income. You need to learn constantly.

For software. The cost of paid programs and services should be taken into account in the cost of your working time.

Expenses for lawyers, accountants, banks are included in the hourly rate. The cost of drafting a contract, letter, complaint with a lawyer is several thousand rubles. Consultations with financiers and bank servicing of a current account are also not free.