How Contractors Can Make More Money Without Doing More Work
More money, less work. At first, this sounds a bit counter intuitive, especially as a self-employed contractor. But this is really all about time management, efficiency and a few more freelance tips to help make you more money. You want to spend your time delivering on your offering and less time on activities that take you away from that. Here are a few strategies to increase your revenue without increasing your workload.
1. Charging per hour or per project
Determining the most effective way to price your work likely has the largest impact on your revenue. Are you going to charge by time and materials used or are you willing to charge per project? If you have a solid understanding of how long it takes to complete different pieces of work, then project based invoicing might be the best route. That way you don’t get penalized for being efficient. If you aren’t sure about the length of a project, then pricing using time and materials makes more sense. This protects you from unseen circumstances and from setting timelines that are too optimistic.
2. Increasing your rates
You’ll have to do some research to make sure you know the acceptable market rate, but more important is knowing your value. If you can justify your price with relevant experience and measurable results, then go for it. Don’t undercharge because you’re concerned about losing business. As long as you can connect your cost to the value you’ll be providing your client, increasing your prices is one strategy for making more money with not as much work.
3. Start outsourcing work
Clients hired you to do a specific job. You have a set of talents that allow you to do the job better than anyone else, so you need to focus on getting the task done as best you can. That means clearing your mind and your schedule from any work that doesn’t align with fulfilling the task you’re being paid to do. Outsource some help. Hire a virtual assistant, invest in technology that can automate processes and free yourself up to do the work you love doing.
4. Focusing on time management
Most of the ways you can earn more revenue as a contractor is based in time management. In the early days of your business, the majority of your time should be spent on revenue-generating activities. No revenue, no business. That’s the reality. You should focus on the needs of your clients and building a steady pipeline of clients. This stage could take a few years, so be patient.
5. Developing your skills
Once that’s established, you need to focus more of your time on honing your skills. You’re good at what you do, which is why you decided to do it. Once you feel like you have the flow of clients under control and you’re making a solid income, focus on ways you can get better. Learning is an investment that should be ongoing, meaning it should be part of your budget. This will make sure your skills stay up to par so that you’re always ready and able to deliver at a high level.
Developing your skills takes time, which is why the third freelance tip is so important. Resources can come in different forms. It can be actual people you hire to do things like managing your social media, but you can also turn to technology as a resource. Apps like Sorted, Evernote, and even something simple like Google Tasks helps with time management.
With Sorted as one of your early investments in technology, you never miss out on tax savings. We sort your expenses and your business transactions so you’re ready to go come tax time. When you’re self-employed, time management makes a difference to your bottom line. Let Sorted help you with your business expenses.
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Katie Tingley is the Founder and President of The Tingley Advantage Inc. and her personal mission, KatieTingley.com. For more than 20 years she has been building successful teams and improving the way her clients do business. The Tingley Advantage Inc. delivers profit improvement through analytics, performance measurement, and process management. KatieTingley.com focuses on her life-long passion for developing and managing results-driving, high-performing and engaged teams through training and coaching leaders to become their best selves so they can build awesome teams that deliver outstanding results. You can learn more about Katie and both companies at The Tingley Advantage Inc. and KatieTingley.com.