1. The calculation was much higher than you expected
Once you picked your jaw up off the floor, you started to question my credibility (and probably my sanity). Once you punched in all the info for the working life you dream of, your hourly rate seemed absurd.
Part of the reason you started freelancing was to get away from full-time hours. You’re always dreaming of a healthy work/life balance. You also wanted the flexibility to take ample holidays, spontaneous days off, and rest when you’re sick without panicking that you’ve run out of ‘days’ for the year.
Yet according to my calculator, this kind of life means your hourly rate is at least $300. Which may or may not reflect what you serve as a creative.
To be frank, if you start writing that figure on your quote (especially if you’re billing hourly), you’re probably not going to land many jobs. Or good business relationships. Or boozy networking event invites.
Tweaking the numbers in the calculator here will help because it’s all about the little adjustments. You are wanting to find a rate you can work with, serve with confidence and actually get paid by clients… it’s about balancing those flavours.
2. There are more overheads/expenses than you first thought
Yep. It’s not nice, but there it is. One of the biggest mistakes business owners make (especially in the beginning) is not accurately forecasting their expenses.
You’ve probably heard the phrase ‘you’ve got to spend money to make money’. While this is certainly true to a certain degree, you have to have your finger on all the business outgoings from your bank account.
A monthly accounting subscription, a premium Dropbox account, and trips to Officeworks for supplies are the very tip of the expense iceberg. I can guarantee (especially in the beginning), there will be expenses you’d never anticipated.
Regardless of what others have said, it costs money to run a business.