What Work is Worth

Last fall, I began thinking about bidding on freelance work, and the first question that popped into my head was, "How much would I charge?"

I was reassured to find out once I started searching online that striking a balance between charging enough to ensure a profit, while also trying to be as competitive as possible, is a pretty hot topic. Recently, a friend mentioned wrestling with the same issue, so I decided to share what I learned.

There are a number of factors that boost the hourly rate needed to ensure a profit, including covering taxes not only as an individual but also as an employer (because you are self-employed). Then there is covering expenses, possibly paying for your own health insurance, having something to tide you over on sick days, etc. For more on what to consider, check out this Monster.com article: "How Much Should Contractors Charge?"

But how to stay competitive in the marketplace? Basically, there is no quick and easy answer. Determining an appropriate going rate, "apples to apples," in an area or industry requires research, and a few Google searches won't cut it. The information is out there, though, if you realize where to look for it. (Or, more specifically, where to find a guide to get you there.) Libraries are a smart place to start. Many already have ongoing programs for job hunters and aspiring entrepreneurs. The Columbus Metropolitan Library here in Ohio has great resources available every day, as well as scheduled workshops.

The other place I would urge any potential freelancer or contractor not to overlook is the federal Small Business Administration. I was pleasantly surprised to find out I could meet for free with an expert to get questions answered, and there are seminars and other programs available. It could be invaluable for your next venture. And after all, since your taxes help pay for the service, you might as well take advantage of it.