When you begin your IT consulting firm, you will likely want to offer an introductory rate, maybe something around $75 per hour. But if you keep that rate for the long-term, you'll end up operating a pro bono company rather than a successful firm.
Although $75 per hour at 40 hours a week ends up being around $150,000 per year, that's not really the truth. As a computer consultant, you'll have a variety of overhead costs, including taxes, that will take a chunk out of your pay.
Additionally, you'll discover that it's simply not possible to bill 40 hours in a week. You'll also have to spend part of your time focusing on marketing, payroll, and other mundane tasks that will not be billable.
Even getting around 30 hours a week consistently may take time, often up to a year. You'll want to make sure that your hourly billing rate will cover all your expenses plus some even when you're only billing 25-30 hours per week.
Learn more about the hidden costs of starting your computer consulting firm in the full article (link above).
Submitted by Joshua Feinberg