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How to Calculate Your Bill Rate: Expert Tips for Independent Consultants
How to Calculate Your Bill Rate: Expert Tips for Independent Consultants
How to Calculate Your Bill Rate: Expert Tips for Independent Consultants
How to Calculate Your Bill Rate: Expert Tips for Independent Consultants
How to Calculate Your Bill Rate: Expert Tips for Independent Consultants
How to Calculate Your Bill Rate: Expert Tips for Independent Consultants
How to Calculate Your Bill Rate: Expert Tips for Independent Consultants
How to Calculate Your Bill Rate: Expert Tips for Independent Consultants
How to Calculate Your Bill Rate: Expert Tips for Independent Consultants
How to Calculate Your Bill Rate: Expert Tips for Independent Consultants
How to Calculate Your Bill Rate: Expert Tips for Independent Consultants
How to Calculate Your Bill Rate: Expert Tips for Independent Consultants
How to Calculate Your Bill Rate: Expert Tips for Independent Consultants
How to Calculate Your Bill Rate: Expert Tips for Independent Consultants
How to Calculate Your Bill Rate: Expert Tips for Independent Consultants
How to Calculate Your Bill Rate: Expert Tips for Independent Consultants
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How to Calculate Your Bill Rate: Expert Tips for Independent Consultants

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As an independent consultant you have a business to run and knowing how much to bill is a really big deal. This webinar focuses on the cost-based method.... …

As an independent consultant you have a business to run and knowing how much to bill is a really big deal. This webinar focuses on the cost-based method....
Visit www.mbopartners.com for more details after the presentation!

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    • 1. HOW TO CALCULATEYOUR BILL RATEEXPERT TIPS FORINDEPENDENT CONSULTANTS ©2011 MBO Partners Inc.
    • 2. 2 YOUR HOSTS TODAY STEVE ARHANCET GENE ZAINODirector of Consultant Services President & CEO ©2011 MBO Partners Inc.
    • 3. 3 SPECIAL GUEST PANELIST GARRY RICHEYOwner, Richey Leadership Group &Successful Independent Consultant ©2011 MBO Partners Inc.
    • 4. 4 WEBINAR CONTROLSThe full screen iconmaximizes thepresentation area.The raise hand iconalerts the organizerthat you have aquestion or comment.The chat box allows youto send a question to thepresenter. ©2011 MBO Partners Inc.
    • 5. 5 ABOUT MBO PARTNERSMBO PARTNERS MAKES IT EASY FOR INDEPENDENTCONSULTANTS AND THEIR CLIENTS TO WORK TOGETHER ©2011 MBO Partners Inc.
    • 6. 6 THE MBO WEBINAR SERIES➤ SIGN-UP FOR THE SERIES! • Email webinar@mbopartners.com to be informed of the entire series or to provide topic suggestions. ©2011 MBO Partners Inc.
    • 7. 7 WHO ARE WE TALKING TO?➤ ASPIRING INDEPENDENT ➤ CURRENT INDEPENDENT CONSULTANTS CONSULTANTS ©2011 MBO Partners Inc.
    • 8. 8 BILL RATE CALCULATION METHODS➤ THERE ARE MANY WAYS TO ARRIVE AT YOUR FINAL BILL RATE • Value-based method • Market-based method • Cost-based method➤ TODAY WE WILL FOCUS ON THE COST-BASED METHOD ©2011 MBO Partners Inc.
    • 9. 9 STEP #1: CALCULATE YOUR COSTS➤ LABOR COSTS➤ TAXES & BENEFITS➤ OVERHEAD Variable Costs Fixed Costs Labor costs Taxes & Benefits Overhead Total Cost ©2011 MBO Partners Inc.
    • 10. 10 LABOR COSTS VARIABLE COST➤ KEY QUESTION: • How much would you have to pay to hire an employee(s) to deliver this service?➤ FACTORS TO CONSIDER • Experience, length of project, specific services being delivered • Where you are providing your services • Price yourself based on where the project is being delivered, not where you live ©2011 MBO Partners Inc.
    • 11. 11 TAXES & BENEFITS VARIABLE COST➤ TOTAL TO CONSIDER: ADD 25-30% OF LABOR COST • Payroll taxes • When you hire someone, you are required to pay employer side payroll taxes, including o Matching the employee share of Social Security and Medicare o Workers comp, Unemployment • Employer share of Benefits • Healthcare premium subsidy • Contributions to retirement (matching, etc) ©2011 MBO Partners Inc.
    • 12. 12 OVERHEAD FIXED COST➤ DEFINITION • Costs incurred to run, maintain & grow your business➤ EXAMPLES • Office supplies • Rent/Mortgage • Marketing • Technology ©2011 MBO Partners Inc.
    • 13. 13 UTILIZATION➤ DEFINITION • Percentage of hours you spend doing actual billable work • Standard hours are 40 x 52 = 2080 • A good utilization is 75% (1560 hours actually billed)➤ THINGS TO CONSIDER • How much you can realistically work • Business development • Administrative responsibilities • Training • Personal time off➤ HOW YOUR BILLABLE HOURS AFFECT YOUR BILL RATE • The less billable hours you have, the higher your rate to cover costs ©2011 MBO Partners Inc.
    • 14. 14 BREAKEVEN: MARK-UP VS. PROFIT Profit Breakeven$ Mark-up Fixed Cost ©2011 MBO Partners Inc. Utilization Rate (Actual hours billed)
    • 15. 15NOW LET’S HEAR FROM GARRY ©2011 MBO Partners Inc.
    • 16. 16 WANT TO LEARN MORE?➤ CONTACT STEVE ARHANCET sarhancet@mbopartners.com➤ VISIT OUR WEBSITE www.mbopartners.com➤ FOLLOW US ON TWITTER @mbopartners➤ SIGN-UP FOR ADDITIONAL INFORMATION • Full length article & bill rate resources provided to webinar registrants ©2011 MBO Partners Inc. • Receive updates for upcoming webinars- email webinar@mbopartners.com

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