Schedule Your Diagnostic Consultation

IT Consultancy – How Much Money Can You Make?

IT Consultancy How Much Money Can You MakeWorking out how much money you can make from IT consultancy is far from straightforward, as there are so many factors and variables. This article sets out some essential considerations to help you at least begin to come up with a number.

Hourly Rates – Or Not?

An obvious starting point is to think of your standard (or average) hourly / daily rate and multiply it by your standard (or average) working hours over a period of a month or a year.

But, things aren’t that simple. Do you, for example, bill for every hour of every day—or is some of it spent traveling, marketing, or doing admin? Perhaps you don’t even work to an hourly rate and instead charge monthly fees?

Think of the Extras

IT consultancy isn’t just about the hours you bill and the retainers you charge. You can (and should) have numerous other types of revenue—including profit on software, commission on services, and perhaps a mark-up if you are a hardware reseller.

Be Honest About Costs

There’s nothing to be gained by being optimistic about costs. Always make a worst-case estimation of your expenses—everything from taxation to insurance and staff and travel costs. Sadly, you may find that your impressive hourly or monthly rate sounds rather less so.

Look at Past Results

While “year one” income projections can be little more than an educated guess, you can come up with much better estimates once you have some historical data to go on.

Knowing how much you can make from IT consultancy comes with experience and also with knowing how to refine the way you do things—but considering the points above should help you at least come up with an estimate.

 

How do you go about forecasting your estimated annual consulting revenue? Please share your thoughts in the Comments section below.  

 

And to follow-through on the tips introduced in this short article, be sure to download your free copy of the special report on How to Start a Computer Consulting Business: 6 Proven Ways to Build Your Initial Client Base

Click me

 

Creative Commons Image Source: flickr tedkerwin

 

Schedule a Free Consultation