My business is there to make money. I don't really have many direct overheads (direct meaning that the overheads are caused by being in business), I don't pay wages I just employ freelancers who are also trying to build up their business. I earn enough to cover my bills and save a little. Luckily my outgoings for where we live are not that high.
My opinion is that a business should earn the same amount as it would (in theory) pay out in wages. I think one of my clients once said a business should earn double what it pays out (so 66/33 cut) however I'd be happy with it being a 50/50 cut for now.
So if I've earnt £x, the business should have a turnover of at least £x*2. Why at least? Well there is not just my work to take into account as I employ Dave virtually full time, so the business should be making double what he gets too. However going by the past 6 months, whilst the figures look good and are on target to increase last years figures, they don't add up to what they should for a business that's meant to be making money.
So why do we seem to be working so much but the turnover doesn't seem to show this? I can only assume it's a mix of quoting too little and also spending more time on work than we realise, or should I say believing we spend more time on work when really we're managing to waste time.
Clients sometimes don't help with time management. I'm finishing off two websites right now, both of which should be up and running and both of which have been delayed due to them still populating the sites with information and products.
One problem I have found is clients change their minds after they've signed your quote. Yes this is understandable, as you work on their site you come up with ideas, they come up with ideas and suddenly your workload has doubled. Despite writing on a quote 'changes to this quote may mean the final cost being reassessed' it seems to go unnoticed. I've got a meeting with a client on Thursday who's added 3 extra dynamic product sections to their site that weren't quoted for. Despite reusable code cutting down some of the time, each section is very different from the next and so I still need to discuss the extra costs now involved. This is the part of business I hate as I'm just a programmer and am really not a business person! I feel bad asking for extra money, even though my business is due it, and I definitely don't want to annoy the client as there are several more projects being lined up with them and they're good clients to work with (ie. hassle free!).
That aside, how do you manage your time? Even though I try to avoid reading blogs and forums between breakfast and lunch, and lunch and dinner, I still feel like I don't get as much done during the day as I could/should. Perhaps it's all the phone calls and emails I have to deal with too (which reminds me, Matt I'll reply tomorrow – I promise!). I really do feel like I lose time during the day however, and I don't know where the time goes.
Cool, but you know Im in no rush to get it done, we are both snowed under at work!
And tbh I have similar days at my work, when I just dont get anything done cause things jsut keep popping up, I think the downside is knowin so much how things could be, if we didnt know as much as we know, you programming and sites and me and my computers – we wouldnt spend long enough getting them jsut to our liking, whether people would notice or not!
Yeah, perhaps perfection is the downfall! And I still didn't send that email!
Im running away to see rob in aber this weekend, and BY seem to have ###### themselves over in Kidderminster so I wouldnt worry about it!
I forgot to say, I asked the client for more money and they happily said yes and they'd expected it. Ahh it's nice when it's easy.
Oh dear, that is the fate of website builders, i used to make sites but i spent so much time changing this or that, the next client had to wate till i could complete the first site, being a one man band did not help, i gave up in the end, and now just work for one large site in the UK, i wish you well oh and a merry christmas, Mike.
Hi Michael, well despite this being written 18 months ago, things still don't change. The only difference now is that we have about 2-3 times more work on! However my quoting techniques have changed so I think most of the time, unless a client causes problems, we do tend to make the right money for the job.
But clients still cause delays, however my terms and conditions are getting tougher and tougher over this, and I'm having to add an additional amount to the quote just to cover for this.
Now it's not a money/cashflow issue, it's more just time, or lack of it! I guess it's a good position to be in.
Hi, you never know where you will land on "stumbleupon" ? pleased to hear your doing ok now, save time for the important things in life, like laughter and fun, regards Michael.