Most small business owners launch their companies because they are really good at delivering a particular product or service and they love doing it. Sadly, the majority aren’t equally as talented at managing the financial aspects of their businesses. Building a successful business requires more financial management than adding up your sales, subtracting the expenses and hoping there’s a little left over.
The number of independent contractors and freelancers is growing rapidly. According to MBO Partners, the market consists of approximately 16 million now and is expected to hit around 20 million in the next two years. The economy is responsible for the increase in independent workers. People who can’t find jobs eventually recognize the need to create their own income opportunity. Plus, businesses who don’t feel comfortable adding permanent employees to their team are utilizing independent workers on an add-needed basis.
How much should I charge for my product or service? Good question, right? In theory you know you want to make a profit so that means you need to charge more than it cost you to make and deliver your product or service. But in practice it isn’t as easy as it sounds to determine the right pricing structure for your business.