Setting Hourly Rate & Invoice Questions

TechnoFreek

Hi,

I'm about to setup a small business to offer business ,process and data consulting. I have a normal PAYE day job but an ex-colleague runs a business consulting firm and he has some overflow work from time to time which I could help with.
He has asked that he be invoiced for such work hence me setting up a business.

1) My first question is how do I set an hourly rate as the work I will do for him will take hours rather than days. I know on the open market, I'd achieve €450 day rate. Do I divide this by 7/8 hours and round?

2) Is there a good invoice template out there that I can replicate?

Thanks

dev100

TechnoFreek wrote:

1) My first question is how do I set an hourly rate as the work I will do for him will take hours rather than days. I know on the open market, I'd achieve €450 day rate. Do I divide this by 7/8 hours and round?

If he getting you to do some work and say it takes 8 hours and you want 450 and he will have to add his charge onto that for him to make money . So he ll have to charge the client more to get his cut out of it . Is the market able to sustain say for example 700 Euro for a days work ?

TechnoFreek

dev100 wrote: »

If he getting you to do some work and say it takes 8 hours and you want 450 and he will have to add his charge onto that for him to make money . So he ll have to charge the client more to get his cut out of it . Is the market able to sustain say for example 700 Euro for a days work ?

Good question, I can't fully answer that but I know the day rate he charges a customer for himself is much higher than mine so he would still make money on my work, but not as much as he would if he could do it himself.

Victor

If you would normally get €450 per day, but only get two hours work, you need to charge higher than the daily rate. Potentially charge at €80/hour, but offer €450/day when you get a full day's work or more. There may be tasks where you can say I will do X for Y.

TechnoFreek

Victor wrote: »

If you would normally get €450 per day, but only get two hours work, you need to charge higher than the daily rate. Potentially charge at €80/hour, but offer €450/day when you get a full day's work or more. There may be tasks where you can say I will do X for Y.

Sounds good, kind of what I had in mind to be honest. Thanks!

Any takers on ideas for the invoice template?!

BarryD2

What you think your worth in terms of your regular PAYE employment is not directly related to what you can charge as an individual. You have to assess what your work is worth realistically - it could be more than you earn in your regular job but quite possibly notably less.

Re invoicing. If you're worth what you say, you should be able to figure that out

Don't forget tax implications. You invoice, presumably payment comes through your bank account. This is all trackable, so make sure you declare this extra income to Revenue.