LumberJocks

basic financial planning #10: Getting a jump on going pro

  • Advertise with us
Blog entry by BigTiny posted 03-29-2011 10:19 PM 3481 reads 0 times favorited 2 comments Add to Favorites Watch
« Part 9: A little exercise/ Part 10 of basic financial planning series Part 11: Retirement planning and timing. »

Here’s a little tip for those of you thinking of going pro, either as a business or in retirement for extra cash.

Start keeping track of the materials you use in a project and the time it takes to make them, now. Even better, break it down into sections, like planning phase, layout, cutting, jointing, assembly and finishing. This information will be priceless when it comes to estimating prices on projects for your clients.

Don’t forget to include such things as waste (if you take 6 feet out of an 8 foot board, you charge the client for the entire 8 feet) and such things as glue, nails, screws and so on. They add up.

Having this information to draw on could make the difference between making a profit on a job or losing money. Nobody wants the second to come along, so you gotta know this sort of thing.

Paul

-- The nicer the nice, the higher the price!



2 comments so far

View Ken90712's profile

Ken90712

16955 posts in 2654 days


#1 posted 03-29-2011 10:57 PM

Big Tiny you couldn’t be more correct. I have started doing this, being people are always asking me to make something or how much for this and that? I’m presently keeping real close track on an Entertainment Center I’m building just in case. Cutting boards was my big wakeup call. Keeping track of everything. Even out electric bill went up from the planer, saw, drum sander ect ect.. Not sure I want to make a career out of it but good advice as none of us want to work for free or lose money.

I have gotten over worrying about price I feel is fair for me to make something. I tell them well I could charge you what I make at work if you like…. LOL

Thx for the post good to hear from you again.

-- Ken, "Everyday above ground is a good day!"

View BigTiny's profile

BigTiny

1676 posts in 2353 days


#2 posted 03-30-2011 05:41 AM

I think what a lot of new pros forget is to include in such things as maintaining tools and even, yes, sweeping the shop floor. These things have to be done, and if you don’t bill for them, it’s you that pays for them in lost time that could have gone into a revenue producing project. My suggestion would be to figure out what percentage of your time goes into such things and then mark up your time estimates by that amount.

-- The nicer the nice, the higher the price!

Have your say...

You must be signed in to post the comments.

DISCLAIMER: Any posts on LJ are posted by individuals acting in their own right and do not necessarily reflect the views of LJ. LJ will not be held liable for the actions of any user.

Latest Projects | Latest Blog Entries | Latest Forum Topics

HomeRefurbers.com