Having six months of expenses saved up to be a most excellent idea. Even if
you have a steady job it's peace of mind that helps you sleep at night.

jason

On 5/9/07, Randy Clarksean <rclark at lakesplus.com> wrote:
>
>
> If you work on projects 50% of the time you will be doing good as a
> consultant ... if you are doing job shop type work (warm body for hire)
> that is different as you end up with long term jobs that way and are not
> really consulting ...
>
> In general ... assuming 40-50% billable time is reasonable - once you
> get up and going.  They also say to have 6 months salary sitting in the
> bank if you are to start on your own as the startup time can be lean.
>
> Just my thoughts ... as someone who has been an independent consultant
> and works for a firm that does strictly consulting everyday.
>
> Randy
>
> On Thu, 2007-05-03 at 10:06 -0500, Steven White wrote:
> > I don't do consulting but I wondered once how much I would have to
> > charge if I did.
> >
> > I went to my employer's HR department and asked them for everything
> > they contributed for me to various places.  That included FICA,
> > Medicare, pension, life insurance, long-term disability, their share
> > of medical insurance, dental insurance, etc..  I added that to my
> > salary to come up with the amount of money I would have to get to have
> > the same income I have as an employee (because I would have to pay my
> > own FICA, life insurance, long-term disability, etc.).
> >
> > Then I tried to figure out how many days in a year I would actually
> > work.  The 52 weeks times five days per week has to have subtracted
> > from it holidays, vacations, and maybe a little sick leave.
> >
> > Then I took the advice of the consulting books to realize that I would
> > not work eight hours every day.  In fact, considering overhead,
> > travel, education, and so on, I might average only six hours of time
> > each day that I could in good conscience bill for.
> >
> > Finally, I divided dollars by hours to get an hourly figure.  I think
> > that at the time is was around $52.
> >
> > Steven White
> > City of Bloomington
> > 1800 W Old Shakopee Rd
> > Bloomington MN 55431-3096
> > USA
> > 952-563-4882 (voice)
> > 952-563-4672 (fax)
> > steven.white at ci.bloomington.mn.us
> >
> > >>> Wayne Johnson <wdtj at yahoo.com> 4/4/2007 9:58 AM >>>
> > What I did was take what I was making as a full time developer, add in
> > 7.5% for the self employment taxes, Another 6% for vacation/sick and
> > then a fixed monthly charge for insurance, etc if you need to.  Then
> > split this all up to an hourly charge.
> >
> > Remember that there is always down time between contracts, so short
> > term contracts need to charge more for the between the gaps overhead.
> >
> > I was charging $72/hr for short term and $60 long term YMMV.
> >
> > At one point I was working for a contract house (at $30/hr + benefits)
> > and I later found out the contract house was charging the client
> > $75/hr.  They were making a VERY nice profit on my labor.
> >
> > Dave Dash <dave.dash at gmail.com> wrote:
> >         I've seen people charge anywhere from $25-100/hr for various
> >         computer related consulting.  Unfortunately nobody likes to
> >         share how much they charge as it tends to be a not for public
> >         consumption.
> >
> >         If I weren't already doing some consulting (albeit on the
> >         side), I'd pick a number between $25-100 that is more than
> >         what I'd be making at a similar full time or even contract gig
> >         (and you can call recruiters to find those out).  Then just
> >         keep to that.  But really the rate doesn't matter so much as
> >         the quality of service.... of course, I'm not the small
> >         business owner cutting you the check, so what do I know.
> >
> >         -d
> >
> >         On 4/3/07, Florin Iucha <florin at iucha.net> wrote:
> >                 Guys,
> >
> >                 What are some good resources on consulting rates?  I'm
> >                 talking to a
> >                 small business owner about Linux support and
> >                 consulting for their shop.
> >                 Mainly remote troubleshooting, with bulk work during
> >                 weekends, if
> >                 need be.
> >
> >                 Thanks,
> >                 florin
> >
> >                 --
> >                 Bruce Schneier expects the Spanish Inquisition.
> >                       http://geekz.co.uk/schneierfacts/fact/163
> >
> >                 -----BEGIN PGP SIGNATURE-----
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> >
> >
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> >
> >                 _______________________________________________
> >                 TCLUG Mailing List - Minneapolis/St. Paul, Minnesota
> >                 tclug-list at mn-linux.org
> >                 http://mailman.mn-linux.org/mailman/listinfo/tclug-list
> >
> >
> >
> >
> >         --
> >         Dave Dash
> >         612.670.0621
> >         Discover your favorite restaurant: reviewsby.us
> >         gtalk: dave.dash
> >         _______________________________________________
> >         TCLUG Mailing List - Minneapolis/St. Paul, Minnesota
> >         tclug-list at mn-linux.org
> >         http://mailman.mn-linux.org/mailman/listinfo/tclug-list
> >
> >
> >
> > ---
> > Wayne Johnson,             | There are two kinds of people: Those
> > 3943 Penn Ave. N.          | who say to God, "Thy will be done,"
> > Minneapolis, MN 55412-1908 | and those to whom God says, "All right,
> > (612) 522-7003             | then, have it your way." --C.S. Lewis
> >
> >
> >
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>
>
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