Comments on: Become an entrepreneur http://www.milesburke.com.au/blog/2006/03/27/become-an-entrepreneur/ Thoughts on small business, the web industry and more, from Miles Burke, Author, Speaker, Entrepreneur & Geek. Fri, 21 Nov 2008 01:08:24 +0000 http://wordpress.org/?v=2.6.3 By: Grant http://www.milesburke.com.au/blog/2006/03/27/become-an-entrepreneur/#comment-666 Grant Wed, 12 Apr 2006 02:41:49 +0000 http://miles.burke.id.au/blog/?p=44#comment-666 Miles, this post is incredibly well-timed.. just the sort of stuff I need to hear. And this wisdom even comes with tofu - it's like you wrote it just for me. Awesome. Miles, this post is incredibly well-timed.. just the sort of stuff I need to hear. And this wisdom even comes with tofu - it’s like you wrote it just for me. Awesome.

]]> By: Si http://www.milesburke.com.au/blog/2006/03/27/become-an-entrepreneur/#comment-591 Si Mon, 03 Apr 2006 13:37:32 +0000 http://miles.burke.id.au/blog/?p=44#comment-591 All great advice Miles, Myles and Jason. I'd probably add that if you're going to start a business (less so for freelancing) be aware that it inevitably takes a while to get things running -- maybe two or three years before everything (work, stress, money) settles in to place. By then you should know what works, which clients pay on time, and what types of work are worth chasing after. That's two or three years of hard slog, few holidays and probably a reasonable dent in your social/family life. Be prepared for that. Save up some money before you start and take a at least a few days break so you can kick things off with reserves of both money and energy. Starting and running a small business is an ongoing (and definitely valuable and fulfilling) learning experience. Just be prepared for some "fun" along the way. It's called a ride for good reason - there's ups and downs... All great advice Miles, Myles and Jason. I’d probably add that if you’re going to start a business (less so for freelancing) be aware that it inevitably takes a while to get things running — maybe two or three years before everything (work, stress, money) settles in to place. By then you should know what works, which clients pay on time, and what types of work are worth chasing after.

That’s two or three years of hard slog, few holidays and probably a reasonable dent in your social/family life. Be prepared for that. Save up some money before you start and take a at least a few days break so you can kick things off with reserves of both money and energy.

Starting and running a small business is an ongoing (and definitely valuable and fulfilling) learning experience. Just be prepared for some “fun” along the way. It’s called a ride for good reason - there’s ups and downs…

]]> By: Myles Eftos http://www.milesburke.com.au/blog/2006/03/27/become-an-entrepreneur/#comment-590 Myles Eftos Mon, 03 Apr 2006 04:59:12 +0000 http://miles.burke.id.au/blog/?p=44#comment-590 ... not to mention the peaks and troughs of pay. I'd recommend scrapping some of that measely $16/hr and put it away in a savings account, because not all clients are as quick to pay up and you might like and having a checque coming in doesn't pay the bills until it clears... … not to mention the peaks and troughs of pay. I’d recommend scrapping some of that measely $16/hr and put it away in a savings account, because not all clients are as quick to pay up and you might like and having a checque coming in doesn’t pay the bills until it clears…

]]> By: Miles http://www.milesburke.com.au/blog/2006/03/27/become-an-entrepreneur/#comment-514 Miles Wed, 29 Mar 2006 10:39:04 +0000 http://miles.burke.id.au/blog/?p=44#comment-514 Good idea Jason, that'd be an easy way of roughly estimating. Good idea Jason, that’d be an easy way of roughly estimating.

]]> By: Jason Stirk http://www.milesburke.com.au/blog/2006/03/27/become-an-entrepreneur/#comment-483 Jason Stirk Tue, 28 Mar 2006 07:38:01 +0000 http://miles.burke.id.au/blog/?p=44#comment-483 The majority of people I talk to in IT freelance/consulting assure me that a good rule of thumb is to take whatever the hourly rate is (to the client) and divide by 3 - that's effectively what you can pay your employee (or yourself, in the case of a small business) once you take out all of the overheads. $45 / 3 = $15, so your example confirms this. Sure, freelance work sure is fun (and hopefully fulfilling) but you've got to be on top of it. Don't even go into the whole stable income / "will I be able to feed and house myself next month" issue. The majority of people I talk to in IT freelance/consulting assure me that a good rule of thumb is to take whatever the hourly rate is (to the client) and divide by 3 - that’s effectively what you can pay your employee (or yourself, in the case of a small business) once you take out all of the overheads.

$45 / 3 = $15, so your example confirms this.

Sure, freelance work sure is fun (and hopefully fulfilling) but you’ve got to be on top of it. Don’t even go into the whole stable income / “will I be able to feed and house myself next month” issue.

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