I’m sure I’ve missed a few things, but 30% doesn’t begin to cover the costs that are normally borne by a larger company and factor into the “house” premium.
You have to factor in not only benefits, but also:
* federal-level taxes (there’s no employer to pay the other half, so the contractor bears the whole portion)
* tools (you buy your own tools, stock your own spares, do your own maintenance on your dime — non-billable)
* learning and mandated certifications (same as above — non-billable)
* liability insurance (non-billable)
* vehicle maintenance, taxes, tolls, and fees (non-billable)
* transit time to and from not only contracted job sites, but also estimates that may ultimately result in no revenue (non-billable)
* marketing/lead generation (Angie’s List and HomeAdvisor are free to you, not to contractors — non-billable)
* material storage (you have the keep the customer’s plywood dry if the weather changes, or if the customer has a family emergency and needs to reschedule)
You have to factor in not only benefits, but also:
* federal-level taxes (there’s no employer to pay the other half, so the contractor bears the whole portion)
* tools (you buy your own tools, stock your own spares, do your own maintenance on your dime — non-billable)
* learning and mandated certifications (same as above — non-billable)
* liability insurance (non-billable)
* vehicle maintenance, taxes, tolls, and fees (non-billable)
* transit time to and from not only contracted job sites, but also estimates that may ultimately result in no revenue (non-billable)
* marketing/lead generation (Angie’s List and HomeAdvisor are free to you, not to contractors — non-billable)
* material storage (you have the keep the customer’s plywood dry if the weather changes, or if the customer has a family emergency and needs to reschedule)