The Cost of Self-Employment - Part 13 Step by Step Into Self-Employment in the Network
 |
| Photo by Marek Studzinski on Unsplash |
For many, this falls on their feet later, when suddenly more costs are incurred than one had planned.
Therefore, in Part 13 of the series of articles, I would like to devote myself to the costs of self-employment.
<< Part 12 - Insurance
>> Part 14 - Prices and offers
[Overview of the article series " Step by step into independence on the Internet "]
Why are Costs Neglected?
 |
| Step by Step Into Self-Employment in the Network |
There are certainly several reasons for this.
On the one hand, I think that many start-ups are still anchored in their employee thinking patterns. I was no different.
As an employee, you get a fixed salary once a month and everything that comes into the account belongs to you first of all.
As a self-employed person, you have to get rid of this way of thinking as quickly as possible. Perhaps 50-60% of the money received through paid invoices etc. belongs to you, depending on the costs incurred.
In the case of self-employed people with a high cost of goods, this can also be much less.
A second reason is certainly the euphoria when the company was founded. You want to take care of your products/lines, you want to find customers and advertise. Costs are simply “unsexy” and that is why many do not like to deal with them.
Why is That Life-Threatening?
But that can quickly become life-threatening. Because based on the costs you can calculate your hourly rate, for example.
If you set the costs too low, you automatically charge too little for your work. This happens especially where you try to get new customers through the price.
But over time all the neglected costs come and then it is very difficult to raise your hourly rates. And it usually takes a while for that to take effect.
Therefore, you should take into account all possible costs at the beginning.
Cost of Self-Employment
In the following, I would like to give a rough overview of the costs of self-employment.
It should be noted, of course, that there are individual things for every self-employed person and you should make your head.
On the one hand, as a self-employed person, you have the area of private costs:
- Apartment or House
As a self-employed person, you have to pay attention to your living costs. The rent and of course the ancillary costs are usually a large amount. Garbage fees, GEZ, etc. But even if you have a house, like me, you have to pay off a loan and of course, over time there are always things that have to be repaired or that are redone. - Food and Life
One shouldn't overlook the small amounts of daily living either. Eating, drinking, clothing, going to the cinema, hairdressing, etc. are often rather small amounts that add up in the end. - Car
You can't do without a car today. In addition to gasoline, which is becoming more and more expensive, you usually pay for insurance, repairs, and possibly save on a new car. Here, too, you shouldn't forget to consider the small and/or occasional costs. Cleaning supplies, parking tickets, new tires, annual general inspection, etc. add up to a nice penny. - Children
Anyone who has children will know that the child benefit covers the costs of the kindergarten or daycare center. And when I see that my older daughter's school books cost more than 100 euros for the third grade, one shouldn't underestimate the costs for the children. - Insurance
I covered the subject of insurance in detail in the last part. Private insurances are not without it. And you shouldn't neglect your old-age provision either, as you will later regret it bitterly. - Income Tax
It is important not to forget that the tax office demands income tax from you. The employer used to pay that and many can only remember the reimbursements. Those days are over. ;-) - Other
The best thing to do is to go through the receipts and bank statements from the last few months to find other small costs that you have not thought of before.
The second big “mountain of costs” is the professional costs. As a self-employed person, depending on the activity, you have more or less high expenses that occur regularly, but sometimes also irregularly.
- Office
If you have an external office, there are of course additional costs such as rent, ancillary costs, cleaning service, etc. And office supplies shouldn't be forgotten either. - Technology
Anyone who works with a computer needs a new one relatively regularly. Or do you use software with monthly license costs? Internet access and the telephone (cell phone) also cost money every month. - Car
If you have a company car, the costs are similar to those for a private vehicle. In the beginning, you should think carefully about whether you need a (new) company car. - Insurance
Of course, there is also company insurance, which is even mandatory depending on the industry. And one shouldn't forget important insurance like disability insurance. - Advertising
Without advertising, there are no customers. The costs for your website, advertisement, trade fair appearances, etc. can quickly reach a considerable amount. - Loans
Anyone who has had to invest in equipment, machines, buildings, or raw materials will usually finance this with a loan. And of course, this also causes monthly costs. - Employees
That is not yet the case with me, but if you have employees for the first time, you have to pay their wages and ancillary wage costs monthly on the X key date. - Other
Of course, there are also other costs, such as membership fees, trade tax, etc.
Calculation Aid
If you have taken the time and thought very hard about the costs incurred, you can calculate everything and see what you have to earn.
The website guru-20.info is suitable for this.
The fee calculator there helps to calculate the minimum hourly rate based on the costs. More on this in the next part of the series of articles.
Conclusion
You should take the time to honestly analyze your costs. Often a long list comes together than expected.
But if you are not honest with yourself at this point or are simply too naive, you will run into serious financial problems later.
So It Goes on
Part 14 of the article series Step by Step into Self-Employment on the Net is about "Prices and Offers". I present different pricing strategies and also go into the range planning.
Post a Comment