I am trying to finish a business proposal I am new at this, I have my wages as total 145,000 for me and employee plus benefit for first year but I am not sure how to set up how many clients I will need at 4-6 hrs if I charge 12 dollar a hour to not be in red can some one help me? Will some one please give me an estimate
That's 6,042 hours a year each for you and your employee to work. You are planning for both of you to work 16 1/2 hours a day, seven days a week, from the very first day, working through meal times and with no time off for illness or vacations. Is this realistic? Do you have a lots of potential clients already? At 5 hours' work a month from each client, you'll need 200+ of them lined up ready to give you work straight away to meet your target.
This estimate only takes account of your wage bill. You must also take account of other expenses (rent, taxes, licence fees, insurance, travel and telephone to mention just a few) and you must realise that expenses start from day one, whereas income only builds up gradually. Do you have sufficient funds to meet those expenses before your planned income starts to roll in?
You will also have to spend time that you cannot bill (training, office management and so on), and your charge-out rate will have to cover that, too.
To produce $145,000 working (say) 10 hours a day of billable time, 5 days a week for 48 weeks, you must both be charging in excess of $60 per hour. To cover the other costs, your charge rate must be even higher. But even that, in a start up situation, is much too optimistic in my opinion.
Hope this is helpful. You need to have realistic expectations, especially if you are new to the work.
