Unlock the Hidden Value of Every Minute You Spend — Are You Wasting More Than You Think?
You can work this forwards or backwards. I find backwards is a good way to get started.
For example, if you know your costs are $2,000 per month, you can work backwards to determine how many hours or projects (if you do fixed bid) you’ll need to make your nut.
Where your nut is $2,000. Then you can add a multiplier to this to come up with the price you want to end up with. Note I said “end up with”… you may need to increase this number to allow for discounting.
These are pretty common and straightforward examples. If you have a preferred method for determining your cost basis, I’d love to hear about it.
