Create a clear view of your annual income goals versus your actual business expenses.
Define your targets Start by listing your desired annual salary. Add 20% for taxes and 15% for business overheads like software, insurance, and equipment. For example, if you want a 40,000 pound income, your total revenue target must be at least 56,000 pounds. Use a simple spreadsheet to track these figures. ## Calculate billable capacity Most freelancers can only bill 20 to 25 hours per week due to admin and marketing. If you target 1,000 billable hours per year, divide your total revenue target by this number. In this example, 56,000 divided by 1,000 equals 56 pounds per hour. Avoid the trap of dividing your target by 40 hours per week; you will quickly burn out.
