rbi rate calculator

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Consulting Rate Calculator

Unfortunately, it rarely turns out that way!

The One Page®

Most consultants struggle with knowing how to charge for their time! Particularly new consultants! It is not unusual to hear a new consultant say I am going to charge $150 per hour and I expect to earn approximately $150,000 a year…thinking that there are approximately 2,000 hours in a year, and if they can bill out 50% of their time, they will have a winning formula.

As you can see on the example spreadsheet, if you want to earn $150,000, spend approximately one-third of your time on business development (which may be low), have a modest office with a little bit of administrative support, your rate will need to be closer to $325.00 an hour.

PLEASE NOTE: At The One Page Business Plan Company we not advocate consultants and professional advisors quote daily or hourly rates as a part of their standard practice! We highly recommend you price your engagements on a project basis, using many of the techniques Alan Weiss, author of Million Dollar Consulting recommends.

OK…with that note of caution, you still need to know what your effective daily and hourly rate is to be able to price an engagement. The One Page Consulting Rate Calculator can help you easily understand how much you must charge in order to earn the amount of money you want to make each year, while still having a life, paying your health insurance, car expenses and having some administrative assistance.

This calculator is fun and easy to use. Follow the step by step instructions embedded on the left side of the spreadsheet. I encourage you to be liberal with the amount of vacation, holidays and free time you build into your calculations. You need this time for personal renewal. The business of consulting is hard work. You need time to recover, rejuvenate yourself...if you are going to be able to fully serve your clients in the matter you intent to.

Also…do not underestimate the amount of time you will spend on business development. You should plan on spending one-third to one-half of your time on networking, public speaking, writing, marketing…and just flat being visible in your community. I encourage you to see just how sensitive your daily rate is to a small change in the percent of time you spend on Marketing & Business Development.

Note: All cells in this worksheet are locked, except the input fields to prevent the accidental overriding of formulas. If you would like to edit this spreadsheet, we encourage you to first make a copy so that you preserve the original. Then go to Tools, Protection, and select Unprotect Sheet. This will allow you to make changes to the formatting and to make additional copies of the Scorecards as necessary.

Copyright 2006 The One Page Business Plan Company, All Rights Reserved www.onepagebusinessplan.com

The One Page Consulting Rate Calculator

What is your desired annual income? $ 150,000

260

# of Vacation Days Per Year 20# of Holidays Days Per Year 10# of Free Days Per Year 10

Allowance for Illness (# of days/year) 54Administrative Functions (hours/week) 6Professional Development (days per year) 5Marketing & Business Development (% of total days) 40%

Available Billable Days - Per Year 67 - Per Month 5.6

$ 2,238.81 $ 279.85

What About Overhead? Non-Billable Expenses Impact on

Per Month Annual Cost Daily Rate Hourly RateOffice Rent $ 600.00 $ 7,200.00 $ 107.46 $ 13.43 Utilities 150.00 1,800.00 26.87 3.36 Phone Expenses 200.00 2,400.00 35.82 4.48 Internet 75.00 900.00 13.43 1.68 Executive Assistant Services 750.00 9,000.00 134.33 16.79 Car Expenses 200.00 2,400.00 35.82 4.48 Meals & Entertainment 200.00 2,400.00 35.82 4.48

- - - - - - - - -

Total Overhead Expenses $ 2,175.00 $ 26,100.00 $ 389.55 $ 48.69

$ 2,628.36 $ 328.54

Step 1: Enter Desired Annual Income

Total Available Work-Days in a Year (52 weeks x 5 days)

Step 2: Enter # of Vacation, Holiday & Free Days

Step 3: Estimate Sick Days, Admin, Prof. Develpmnt & Marketing

These cells are calculated for you. Rate Per Day - without overhead

Rate Per Hour - without overhead

Estimate your Monthly Overhead Expenses. The calculator will calculate the annual cost.

These cells are calculated for you.

Rate Per Day - with overhead

Rate Per Hour - with overhead

Copyright 2006 The One Page Business Plan Company, All Rights Reserved www.onepagebusinessplan.com


What is your desired annual income? $ -

260


Allowance for Illness (# of days/year) 00Administrative Functions (hours/week) 0Professional Development (days per year) 0Marketing & Business Development (% of total days) 0%


$ - $ -

What About Overhead? Non-Billable Expenses Impact on

Per Month Annual Cost Daily Rate Hourly RateOffice Rent $ - $ - $ - $ - Utilities - - - - Phone Expenses - - - - Internet - - - - Executive Assistant Services - - - - Car Expenses - - - - Meals & Entertainment - - - - Enter other expenses here - - - Enter other expenses here - - - Enter other expenses here - - - Total Overhead Expenses $ - $ - $ - $ -

$ - $ -











Rate CalculatorWhat is your desired annual income? $ 150,000

260


Allowance for Illness (# of days/year) 54

Administrative Functions (hours/week) 6

Professional Development (days per year) 5

Marketing & Business Development (% of total days) 50%


$ 3,658.54 $ 457.32

What About Overhead? Non-Billable ExpensesPer Month Annual Cost

Office Rent $ 600.00 $ 7,200.00








Utilities 150.00 1,800.00 Phone Expenses 200.00 2,400.00 Internet 75.00 900.00 Executive Assistant Services 750.00 9,000.00 Car Expenses 200.00 2,400.00 Meals & Entertainment 200.00 2,400.00

- - -

Total Overhead Expenses $ 2,175.00 $ 26,100.00

$ 4,295.12 $ 536.89





Rate Calculator

Impact on

Daily Rate Hourly Rate $ 175.61 $ 21.95

43.90 5.49 58.54 7.32 21.95 2.74 219.51 27.44 58.54 7.32 58.54 7.32 - - - - - - $ 636.59 $ 79.57


What is your desired annual income?

# of Vacation Days Per Year# of Holidays Days Per Year# of Free Days Per Year

Allowance for Illness (# of days/year)Administrative Functions (hours/week)Professional Development (days per year)Marketing & Business Development (% of total days)

Available Billable Days - Per Year - Per Month

What About Overhead? Non-Billable Expenses

Office RentUtilitiesPhone ExpensesInternetExecutive Assistant ServicesCar ExpensesMeals & EntertainmentEnter other expenses hereEnter other expenses hereEnter other expenses hereTotal Overhead Expenses












$ -

260

000

0000

0%

260 21.7

$ - $ -

Impact on

Per Month Annual Cost Daily Rate Hourly Rate $ - $ - $ - $ - - - - - - - - - - - - - - - - - - - - - - - - -

- - - - - - - - -

$ - $ - $ - $ -

$ - $ -

rbi rate calculator

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