Custom work is a little trickier to calculate because it involves a lot of upfront work

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In terms of agency billable utilization, this can vary, but a healthy target is around 70-80% – meaning that only 20-30% of you and your team’s time is spent on non-billable tasks. This latter figure can of course be much lower over time, but it’s helpful to have a target or framework in mind.

Looking for a way to calculate billable hours ? Like Timely, Toggl is another great tool for this, as you can assign different rates for different team members or clients. ⏱

Offers
Establishing a common bidding structure is a great singapore cell phone number list way to ensure consistency in the pricing your business charges. Fee structures agencies can be divided into two main categories: project-based work and retainer-based work.

For project-based work, depending on how much net profit you want to make, there are a few factors to consider, such as employee hourly costs, estimated billable hours, and contingency costs (or scope expansion).

calculating math in head

The key is to calculate these unknown factors and determine the profit margins on the services that make sense for your business - and don't forget your LLC Cost and Administrative Costs when doing this calculation!

That’s why you need to make sure to include provisions in your contracts, such as termination clauses that protect the installation phase and ensure that if the client terminates the contract early, you’ll be properly compensated.