Tag: billable hours

Hiring even one person creates a lot less profit than you’d think, and launching a product rarely works out. Here are some tips for consulting companies. Consulting can be a great way to fund a startup or make a bunch of cash. It’s easy to start; Just pick an hourly rate and jump in. There are tons of online tools for time-tracking, project-management, and billing.But someday soon you’ll notice there’s only so many billable hours in the day, and you’ll be tempted to expand. Maybe hire an employee for $30 per hour and re-bill them at $60. Easy money, right?Unfortunately the math doesn’t work that way.Here’s what really happens, and a few ways to combat it.Double is nothing Suppose you hire an employee at $60,000/year. There are 2,000 working hours in a year—40 hours per week times...