Wordpress Websites Development from Prospecting to Deployment and Cross-Selling: An Alternative Operations Manual (IT Business Start-up Series Book 1) by Silviu-Samuel Isidor

Author:Silviu-Samuel Isidor [Isidor, Silviu-Samuel]
Language: eng
Format: azw3
Published: 2018-02-12T16:00:00+00:00

Now let’s calculate our taxes. Let’s assume our business taxes are at about 15%.

Taxes = 15% * Income

Taxes = 15% * $114.972 USD

Taxes = $17.246 USD Yearly

At this point, we are able to calculate the Net Profit.

Net profit = Profit – Taxes

Net Profit = $11,926

Net Profit Margin = Net Profit/ Income * 100 = 10%

Now we can get to your first equation P = E * R + N. Let’s say we estimated a project to take 100 to hours to complete. Having a 25% Negotiation margin, P = 100* $82 + (100* $82 * 25%). P = $10,193 USD.

Please note that all these calculi are designed just to give you a general idea on how to compute your Hourly Rate and Project Budget and does not at all give you a necessarily the jack pot idea or secret sauce recipe. It all depends on your Taxes, and Expenses. Remember that you are to experiment with Wages Cost, Expenses and Mark-up value to find your numbers. The goal is to have a Net Profit of at least 0(Zero), which means your Hourly Rate covers all your Wage Costs, Expenses and Taxes. Experts say that a good profit rate is around 10%, but you may have a profit rate of 10% and a -3% Net Profit Rate. That might happen if your Taxes and Expenses are too high in rapport with other calculus elements. Just make sure you experiment with all these formulas and make sure your Net Profit finally gets Positive. Also don’t get too greedy either.

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