Time Log

The time zone is in New Zealand time, and I spent a lot more time job searching and networking than running my business.

 

That’s really illustrated in this new formula I’ve worked out: 6% billable time this week.

 

 

Normally, I’d just accept it as a long-term tradeoff, but I’m only financially making this trip happen by the hair of my chinny chin chin. I’ve got to get some serious work time in to afford the rest of the trip; I did my household budget numbers today, and found I’ve only got $900 to spare for the rest of this trip.

I want to stay 10 more days, so in order to afford it, I’ve got to focus some time and energy into billable hours; I’m going to try and get 5 in a day.

I plan to alternate travel days with working days; travels days get 1.5-3 hours of work time, and if its not a travel day, I keep working until I hit five hours.

I just closed a couple of clients, and some of them will pay again if I get through the project in front of me. Some have paid already for work they are ready to have done, now or soon. So I have to work on this trip, no way around it.

Profitability – Services

Service 1 – Website Design

My basic rule of thumb has been 25 hours and $2500. eCommerce makes it more, simple facelift makes it less. I try and keep above $100 as my hourly rate per client; this way I can charge $150, and have a budget to outsource portions of the project to contractors for $5-50 an hour. After expenses, I calculate everything to stay above $100 per client, like this:

Service 2 – Homepage Design

I’ve been offering this at $750, because it takes me about five hours, and I can hire a junior developer to code something custom if I need it. This usually involves more copywriting and strategy than straight web design, which merits the rate.

Service 3 – Monthly Retainer

When I can get these clients, they’re good. They last anywhere from 3-36 months. I’ve been steadily raising my rates over the past 24 months, and I’ve hit a good level, that’s sustainable for my business and the amount of money I want to make, if I can get 3-5 consistent retainer clients. I’ve got 2 right now, and a bunch of smaller project work.

I lay out my rates one way here:

Rates and Terms

But I haven’t been able to close any deals with it yet. I have much better luck with this proposal:

http://stellar-platforms.s3.amazonaws.com/bonus/directory-of-services.pdf

I calculate my hours well in this system, so for $3k a month I devote 5 hours a week.

Except weeks like this, when I have to deliver my Weekly Report empty-handed. I hate doing that. So I’m going to buckle down and get lots of work hours in the next few days.

Profit & Loss Discussion Questions

  1. I hope my sales are going up.
  2. February was lean, I put a bunch of effort into prospecting and working my pipeline, and I’m just now getting flush with deals as I’m traveling. It’s actually quite good timing, I just need to handle the workload.
  3. COGS – n/a
  4. n/a
  5. Costs will go up, especially if I move.
  6. I can decrease costs by canceling monthly subscriptions and biking more.
  7. I just raised prices, and my rates are high. I need to make sure I haven’t overshot the ceiling before I raise again.
  8. n/a
  9. n/a
  10. So far, everything is profitable. Except maybe social networking – I’ve been spending lots of time tweeting and blogging about the conference I attended all week. (https://www.puravidamultimedia.com/sales-marketing-jam-in-wellington-new-zealand-techweeknz/)
  11. Not last week. I plan to pick up the slack this week.
  12. What should I do more of, when can I relocate, when can I pay off debt.