One big thing to remember is that you have to incorporate your cost of benefits into your rate.
And document the crap out of *everything*.
Don't let yourself get on the hook for work that isn't in the original agreement. Don't let yourself get on the hook for work that isn't in the original agreement. Don't let yourself get on the hook for work that isn't in the original agreement.
At least, not without an amendment to the agreement and additional fees, unless you are doing it as a "goodwill" gesture. But if you do that, make sure that it is understood to be exactly that.
"One big thing to remember is that you have to incorporate your cost of benefits into your rate."
I agree.
One structural-engineer that is drawing up a set of plans for me now, estimated the over-all job at one price. Then on the estimate he also included his hourly rates for any additional things not already discussed, that he may have to perform.
Gee, a simple concrete outer-wall foundation to support a steel building [40ft X 60ft] $3000. All because I dont want a concrete slab.
I won't give any specific advice right now, but find someone who has already done this and talk to them, at least pretending to be a potential customer. Get any materials they have, find out what they do, what their rates are, etc.
Also, make a trip to a bookstore and read up all you can on both the technical details of what you need to know and even more of the management details. Most small businesses fail because the person who starts it knows the work that needs to be done, but has no idea how to handle the "business" side, e.g. accounting, contracts, managing resources, government paperwork, etc.
Cost of benefits would include health and life life insurance and retirement?
Most of these guys already serve as consultants to various governmental bodies in some form or fashion, there is also a sublayer of associates that do not. Apparantly this school thing sorta got everybodies attention :D-->
The who's so far MAY consist of an attorneys office who specializes in sustainable development, several biologists specializing in various natural resource areas, the aforementioned planner as well as statewide and regional access to lots and lots of experts.
Of course, if the going rate for your field is adequate, you don't need to think about incorporating those things into your rate, but you do need to think about setting aside part of what you receive, so that you are covered.
First of all take what you want to earn for the year and double it.
Then sit down and write down every piece of equipment you will need and add the cost up. Just because you already own a piece of equipment doesnt mean it doesnt cost. Example would be a tractor. You may own it now but it cost to buy it. Best thing is to add the cost of renting a tractor. Don't forget fuel and maintance.
How about an office. The cost needs to include water, electric, garbage pickup, ofice supplies, telephones(dont forget you have to buy them first). Remember hings like computers, copy machine, fax machine, filling cabinets, adding machine.
INSURANCE.
It costs me around $400 a day in overhead for a small company.
((deleted due to being an ignorant response. My apologies to all participants of this thread for my offense. I sincerely hope that all can forgive me for my arrogance in encouraging somebody to utilize loopholes in the tax code for their advantage))
No problem Mark thanks for the info. I've been a business owner for 20 yrs and involved with several other business, one who used Deductions R Us for his tax preparers
My thoughts are that this group should have an accountant type on board as in some cases we would be developing future earning estimates based on a properties renewable natural resources or potential recreation or development income. Factors the landowner would need to know in order to make an informed decision (fancy that full disclosure )
I'll be discussing school development funding next week and have decided to request sufficient funds for a part time staff person. I'll also be talking with GO about a few of their more pressing projects and funding to get them done.
There is alot going on but if these projects can be layered then they may all fit, hopefully...
I have never had my own consulting firm, but I have subcontracted from one (in the roofing industry).
I'm not sure if you'd have the same exposure in your field, but a BIG consideration - especially when it comes to figuring your hourly rate and basic fee schedule - is the cost of E & O insurance (errors and omissions).
In the roofing consulting field the average cost of that is somewhere in the range of 25k/year and up, depending on your volume. Obviously a major cost - if you're going to carry any - lots of guys don't (for obvious reasons).
I don't know if E. & O. insurance is even necessary in your field, but I thought it was worth mentioning...
Get a good business planner and fill in the details.
What are your strengths? The Dr., does the Dr. have papers written on a particular subject that would qualify as a "subject matter expert"?
Is anyone a service disabled veteran? Right now, the hotest thing in Federal Government contracting is service disabled veteran owned businesses. Finally the contracting officers in the federal government are being held accountable for meeting the 3% set aside for those that have served us at a personal cost. SDVOB means that the SDV is 51% owner or greater.
If you put up a web site, make sure you check your web stats to see who visits your site. This will be a very good way of determining your interested customer base. Place white papers on the web site and track the downloads!! Also note the hits from the competition as well. Do you have a company that would be interested in subbing work to you right away? Cashflow helps.
All three Biologists are well credentialed, papers, symposiums, books and textbooks and are conducting local research. The planner wears a steel ring and has 25 yrs experience in the Canadian way of doing things. The law firm is getting up to speed on TDR's and related issues and the county is trying to bring back an expert in that field.
The Ag experts only need to be asked and I have been told I have the support of the psych, bio, chemisty, government, history, math, and eco depts at the college.
Hmmmmm
I've been asked to facilitate a distribution center and commercial kitchen for the marketing network which btw is working with Alabama's economically disadvantaged black belt farmers in developing profitable markets for their goods...AND to bridge a gap between enviros and the local government regarding a proposed city grown from woods, essentially the next biggest city (eventually) to Atlanta, perhaps a good thing perhaps not.
I like the word no but I like the word yes when it is coupled with common sense :)-->
I often hear the echo of my H.S. shop teacher's voice in my head, "There's a big demand for a good man in any field."
It sounds like you've got the stuff for it, but you'll know that better than any of us. If you're really qualified for such a venture and see a need in the marketplace, I say go for it.
Of course, that's easy for me to say, but what have you really got to lose? There's far more I regret not doing than there is having done (with the one exception of getting involved with WayWorld, but there was never any "logic" of any kind involved in that whole debacle).
In terms of losing...I figure, if I fall on my face, I'll pack my belongings, woodstove n storage foods into my truck n toodle off to that 7500 acre tribal property overlooking the ocean n gather my thoughts :)--> or show up on yer door with circular saw in hand asking which job needs to be done next ;)-->
I'll pursue this slowly as I'm committed to several other projects that are fairly sizable and involve many steps and people. I'm thinking too that maybe the school is enough, maybe after that all I'll want to do is count cows n such.
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Steve!
One big thing to remember is that you have to incorporate your cost of benefits into your rate.
And document the crap out of *everything*.
Don't let yourself get on the hook for work that isn't in the original agreement. Don't let yourself get on the hook for work that isn't in the original agreement. Don't let yourself get on the hook for work that isn't in the original agreement.
At least, not without an amendment to the agreement and additional fees, unless you are doing it as a "goodwill" gesture. But if you do that, make sure that it is understood to be exactly that.
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Galen
Steve!:
"One big thing to remember is that you have to incorporate your cost of benefits into your rate."
I agree.
One structural-engineer that is drawing up a set of plans for me now, estimated the over-all job at one price. Then on the estimate he also included his hourly rates for any additional things not already discussed, that he may have to perform.
Gee, a simple concrete outer-wall foundation to support a steel building [40ft X 60ft] $3000. All because I dont want a concrete slab.
:-)
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Mister P-Mosh
I won't give any specific advice right now, but find someone who has already done this and talk to them, at least pretending to be a potential customer. Get any materials they have, find out what they do, what their rates are, etc.
Also, make a trip to a bookstore and read up all you can on both the technical details of what you need to know and even more of the management details. Most small businesses fail because the person who starts it knows the work that needs to be done, but has no idea how to handle the "business" side, e.g. accounting, contracts, managing resources, government paperwork, etc.
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herbiejuan
Thanks Guys
:)-->
Cost of benefits would include health and life life insurance and retirement?
Most of these guys already serve as consultants to various governmental bodies in some form or fashion, there is also a sublayer of associates that do not. Apparantly this school thing sorta got everybodies attention
:D-->
The who's so far MAY consist of an attorneys office who specializes in sustainable development, several biologists specializing in various natural resource areas, the aforementioned planner as well as statewide and regional access to lots and lots of experts.
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Steve!
And don't forget vacation.
Of course, if the going rate for your field is adequate, you don't need to think about incorporating those things into your rate, but you do need to think about setting aside part of what you receive, so that you are covered.
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ex70sHouston
First of all take what you want to earn for the year and double it.
Then sit down and write down every piece of equipment you will need and add the cost up. Just because you already own a piece of equipment doesnt mean it doesnt cost. Example would be a tractor. You may own it now but it cost to buy it. Best thing is to add the cost of renting a tractor. Don't forget fuel and maintance.
How about an office. The cost needs to include water, electric, garbage pickup, ofice supplies, telephones(dont forget you have to buy them first). Remember hings like computers, copy machine, fax machine, filling cabinets, adding machine.
INSURANCE.
It costs me around $400 a day in overhead for a small company.
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markomalley
((deleted due to being an ignorant response. My apologies to all participants of this thread for my offense. I sincerely hope that all can forgive me for my arrogance in encouraging somebody to utilize loopholes in the tax code for their advantage))
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herbiejuan
No problem Mark thanks for the info. I've been a business owner for 20 yrs and involved with several other business, one who used Deductions R Us for his tax preparers
My thoughts are that this group should have an accountant type on board as in some cases we would be developing future earning estimates based on a properties renewable natural resources or potential recreation or development income. Factors the landowner would need to know in order to make an informed decision (fancy that full disclosure
)
I'll be discussing school development funding next week and have decided to request sufficient funds for a part time staff person. I'll also be talking with GO about a few of their more pressing projects and funding to get them done.
There is alot going on but if these projects can be layered then they may all fit, hopefully...
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George Aar
I have never had my own consulting firm, but I have subcontracted from one (in the roofing industry).
I'm not sure if you'd have the same exposure in your field, but a BIG consideration - especially when it comes to figuring your hourly rate and basic fee schedule - is the cost of E & O insurance (errors and omissions).
In the roofing consulting field the average cost of that is somewhere in the range of 25k/year and up, depending on your volume. Obviously a major cost - if you're going to carry any - lots of guys don't (for obvious reasons).
I don't know if E. & O. insurance is even necessary in your field, but I thought it was worth mentioning...
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herbiejuan
Ahh yes the insurances, could be quite hefty...
Thanks Geo
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Tumbleweed Kid
Get a good business planner and fill in the details.
What are your strengths? The Dr., does the Dr. have papers written on a particular subject that would qualify as a "subject matter expert"?
Is anyone a service disabled veteran? Right now, the hotest thing in Federal Government contracting is service disabled veteran owned businesses. Finally the contracting officers in the federal government are being held accountable for meeting the 3% set aside for those that have served us at a personal cost. SDVOB means that the SDV is 51% owner or greater.
If you put up a web site, make sure you check your web stats to see who visits your site. This will be a very good way of determining your interested customer base. Place white papers on the web site and track the downloads!! Also note the hits from the competition as well. Do you have a company that would be interested in subbing work to you right away? Cashflow helps.
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herbiejuan
All three Biologists are well credentialed, papers, symposiums, books and textbooks and are conducting local research. The planner wears a steel ring and has 25 yrs experience in the Canadian way of doing things. The law firm is getting up to speed on TDR's and related issues and the county is trying to bring back an expert in that field.
The Ag experts only need to be asked and I have been told I have the support of the psych, bio, chemisty, government, history, math, and eco depts at the college.
Hmmmmm
I've been asked to facilitate a distribution center and commercial kitchen for the marketing network which btw is working with Alabama's economically disadvantaged black belt farmers in developing profitable markets for their goods...AND to bridge a gap between enviros and the local government regarding a proposed city grown from woods, essentially the next biggest city (eventually) to Atlanta, perhaps a good thing perhaps not.
I like the word no but I like the word yes when it is coupled with common sense
:)-->
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George Aar
And "nos" are easy to come by too, IMHO.
I often hear the echo of my H.S. shop teacher's voice in my head, "There's a big demand for a good man in any field."
It sounds like you've got the stuff for it, but you'll know that better than any of us. If you're really qualified for such a venture and see a need in the marketplace, I say go for it.
Of course, that's easy for me to say, but what have you really got to lose? There's far more I regret not doing than there is having done (with the one exception of getting involved with WayWorld, but there was never any "logic" of any kind involved in that whole debacle).
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herbiejuan
No poop Geo wayworld was at a minimum unreal and oftentimes uncomfortable, I prefer integrity and tangable results
:)-->
and sides it's much easier to change a no to a yes than a yes to a no
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herbiejuan
In terms of losing...I figure, if I fall on my face, I'll pack my belongings, woodstove n storage foods into my truck n toodle off to that 7500 acre tribal property overlooking the ocean n gather my thoughts
:)--> or show up on yer door with circular saw in hand asking which job needs to be done next 
;)--> 
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herbiejuan
and I guess. overall, that's what it boils down to what have i got to lose vrs what have I got to gain
If I stayed with twi I'd be somewhere else doing god knows what for a ministry that at least twice lied to me
I had a choice once between the comfort of a golf course and mayorship and integrity
I chose integrity
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herbiejuan
Geo I'm taking statistics this semester which brought into the equation probabilities
:D-->
Roll the dice once two possible answers, yes/no
yes move on
no
reroll
MUHAHAHAHA
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herbiejuan
I'll pursue this slowly as I'm committed to several other projects that are fairly sizable and involve many steps and people. I'm thinking too that maybe the school is enough, maybe after that all I'll want to do is count cows n such.
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