Take that number and divide it by 52 (number of work weeks), then again by 40 (number of hours per week). Take that number and dial it between 25% and 50%. If you ask a consultant, freelancer or other contract worker what the most difficult part of their job is, they will most likely say setting the price of my services. Some small business consulting firms charge fixed rates for specific consulting services or packages, and others charge a fixed hourly rate for services.
First, you charge an initial setup fee that covers the cost of starting a consulting relationship. Some small business consultants meet with clients in person and others work with organizations remotely to assess their objectives and needs to create a strategic plan for business growth. Next, we'll discuss what influences consulting fees, how to determine yours, and how to accept payments once you've started working with clients. Teleigha Peavy, from Peavy and Associates Business Services in Duluth (Georgia), says that consulting covers a wide variety of services, such as creating a business plan for new companies, helping to seek funding for start-ups, advice on organization and structure, assistance in managing operations, business development and improving existing business processes, among other services.
Consultants enjoy this pricing model because they can earn more than they would with a traditional hourly rate. Advances also make more sense for certain types of work than for others, such as a graphic designer who is committed to delivering a certain amount of graphics each month or an IT consultant who provides website monitoring services. Now that you understand the different methods for setting consulting rates and have seen the average fees for several different industries, it's time to figure out how and how much you'll charge. Once you've collected consulting fees for a client, you should be able to easily adapt the fee and fee structure for new clients.
Setting (and meeting) your rates can be one of the most difficult parts of running your own consulting business. Small business consulting is available for companies of sizes ranging from fewer than 10 employees to more than 50. Consultants often choose a pricing model or a fee structure for their work in order to maintain transparency. Your general location will also influence pricing.
Consultants who live in coastal or urban cities typically charge higher consulting fees.