How Do I Bill For All Of My Hours?

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I run a small handyman and remodeling business and have a hard time generating enough billable hours. I don’t feel comfortable billing for things like giving an estimate, picking up supplies, and cleaning up. So I end up spending far more time working on a job than my estimate.
Handy Bruce

Edward MillsBruce. Let’s get the practical piece out of the way first.

I can understand not billing for your estimates. However, once you have been hired and are “on the job” your time is billable. Time spent going to the hardware store or lumber yard is billable time. Time spent cleaning up the site is billable time. If you’re not including that in your estimates and on your invoices, you’re going to feel short-changed and continue to struggle in your business.

So a quick and practical answer is to begin charging for all of your time once you’re on the job.

Now let’s take a look at what is going on under the surface because I can already hear you replying with a big BUT: “But if I include those hours in my estimates, I won’t get the jobs!”

If you’re not charging for all of your time, you’re undervaluing your work. And that means you’re undervaluing yourself.

Your ability to receive abundance, whether monetary or otherwise, is a direct reflection of the value you place on yourself.

Now while you did not come out and say it in your question, I sense a bit of frustration and even resentment that you’re not making as much money as you would like. That resentment is a sign that you are coming up against the edge of your financial comfort zone. And it’s also a sign that you’re ready to expand that comfort zone.

Here’s my suggestion: The next time you bid a job, determine how many hours you’ll spend on tasks you do not currently bill for – getting supplies, cleaning up, etc. – and include some of that time in your estimate. For instance if a job will have 3 hours of that “unbillable” time, include 1-hour of it in your estimate.

Why not include it all?

Because you don’t want to shock your system. If you push your comfort zone too far too fast you will lose clients because your ability to believe in the value of what you are providing will not match up to the estimate.

It would be like trying to run a marathon when you’ve only been jogging for a month: You wouldn’t finish the race because your body would not be “in shape” for that kind of exertion.

Well think of your ability to receive as a muscle that needs to be exercised. If you push it too far, it’s not going to make it and could even get injured – you’ll lose clients. But if you don’t push it at all, it will never get stronger and may even get weaker.

So start by billing for some of those hours and as you get more comfortable add more. If you do this consistently, within a short time, you should be able to bill for all of your time, feel great about doing so and have clients lining up to hire you!

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Comments

1. On April 22nd, 2008 at 11:45 am, Nicole said:

What great advice! I’m subscribing and look forward to reading more. I’ll know where to come when I come up with questions of my own. Thank you!

Nicole’s last blog post..Sleep Disorders Linked to Children’s Behavior Problems

2. On April 28th, 2008 at 10:34 am, Jenny said:

great post. :)
Jenny’s last blog post..What’s Your Poison?

3. On April 28th, 2008 at 1:22 pm, Edward Mills said:

@Nicole: Thanks Nicole. Look forward to tackling one of your questions!

@Jenny: Thanks!

Edward Mills’s last blog post..Free Teleclass - The Fulcrum Point

4. On April 29th, 2008 at 10:14 am, Caroline said:

This is great advice with an excellent analogy. I am just like this guy, I feel guilty about charging for these unseen-seemingly non productive hours. Thanks for your post! I will be back!

5. On April 29th, 2008 at 2:52 pm, Edward Mills said:

@Caroline: This is such a common issue for small business owners. We all understand that stores charge us for their overhead costs but when it comes to charging for ours, it can be difficult. It really is about strengthening our self-worth muscle and slowly starting to charge for more of those “unseen” hours.

Edward Mills’s last blog post..Free Teleclass - The Fulcrum Point

6. On May 5th, 2008 at 8:04 am, Selene M. Bowlby said:

I think this is a pretty common problem faced by small business owners. Myself included!

I’ve recently started keeping better track of my time (more than just the “work” part of things, but some of the admin aspects as well). It’s amazing how much additional time goes into each project - just the communications back and forth, setup of one “little thing” here, or there, etc.

All things that I don’t normally charge for, but they really do add up! I like your suggestion to build more time into the initial estimates. I’m another one who feels strange doing so, but when you add up all that unbilled time - well, to be quite honest, it hurts!

I think I’m going to start including at least 50% of that time into my estimates. At least until I get used to the idea. I’m sure it won’t be long before I’m fully billing for it.

Thanks for making me realize the importance of this!

Selene M. Bowlbys last blog post..New Portfolio Section of Blog

7. On May 8th, 2008 at 9:14 pm, Edward Mills said:

@Selene: Great point about time tracking! Keeping track of your time is so important! So many small business owners avoid this crucial task. But if you don’t know how many hours you’re truly spending on a project it’s impossible to give an accurate estimate. And then you end up feeling undervalued.

Edward Millss last blog post..Last Day To Save $200 On Energy Skills For Deliberate Creators

8. On May 10th, 2008 at 4:04 pm, Carlos Hernandez said:

Edward,

Great approach! I sold engineering services and we clearly stated our proposal included project management, shop preparation and set-up / tear-down time. I also made a point to verbally communicate that to a client so they would comparison shop “line-by-line” and not just by the “price”.

Carlos Hernandezs last blog post..CarlosHernandez: 2/2 SparkPlugging.com’s "Ask The Coach". http://tinyurl.com/3jo9va

9. On July 7th, 2008 at 3:27 pm, Ron Hodgson said:

I have been estimating building contracts for many years and always allow a percentage for overheads and supervision. work out the amount of this time from previous jobs and change this into a percentage and use this on all future estimates.

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