Business Development Consulting Fees
Business development consulting is a promising venture because it will not just give you the earnings that you want, but you will also have the chance to deal with businessmen and other related issues. However, the business development consulting fees is one of the common issues for this industry.
If you are considering of running a business development consulting company, it is very important that you have the right information that you need.
Charge Daily or Hourly
As you know, most consultants charge by daily or hourly rate. To establish a daily or hourly rate, they calculate the amount of billable hours per year. Most of these hours will be spend in administrative and marketing as well as other functions, so it cannot be billed to client. Sick days, holidays and vacation time are not billed directly to client.
In fact, consultants from other industry should charge enough just to cover overhead expenses and to earn income. In case a consultant wanted to earn 25 dollar each hour of working time. He or she need to charge 100 dollar each hour with client. This presumes half of the billable hours as well as 50 percent of the profit and overhead. The daily and hourly rate might be limited by what your competition charges, most especially if you haven’t positioned yourself as different.
Charge Flat Rate or Fixed
Moreover, some consultants charge flat rate or fixed. For an instance, a tax consultant may also charge 300 dollars to prepare tax return for both husband and wife, including unaudited income statement from the business. In case the consultant takes one hour to perform this, he can have 300 dollars per hour. But if the consultant miscalculates the required time, it may take him 20 hours to complete the task and only earn fifteen dollars per hour.
Charge in Performance Arrangements or Contingency
Occasionally the client will ask the consultant to be their partner. If you agree, you will not an objective consultant anymore. What if the client asks you to execute management consulting for 25 percent on net profits? Will still be any profit by the net? Will there be any profit in the event he writes off his wages, travel, entertainment, home office and car? Furthermore, if you are marketing consultant that is sure that you could increase the sales of the client, you might feel confident charging based on the sales volume of your client.
Business development consulting fees can be difficult sometimes to determine. That is why, it is very important to consult several business development consulting firms or people that is working on this field. They can guide you the best and ideal charge for this consultancy business. The charge that you may provide for your client may differ which depends on the type of business or industry that they belong.
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