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Six Greatest Ideas for Becoming a Consultant • 31

• marketing and advertising.

These expenses could easily add up to not far short of £20,000. Therefore if you are
replacing a gross salary of £30,000, you need turnover of:

• expenses £20,000
• salary £30,000
• pension £4,500
• total £54,500

Now consider the number of days you have available to earn that money. After
deduction of weekends, holidays and bank holidays there are about 240 days left in
the year.

From experience it is very hard to work more than 140 days actually on site as
a consultant. This is different from a contractor who can work more or less all 240
days because they are more like employees than consultants. Consultants have mar-
keting to do, sales calls to make, demonstrations to prepare and preparation work to
do for most of the days they work and earn fees.

Here then are the required daily rates to support five different salary levels
given sales of 140 or 100 days. Make sure you can charge at least these amounts, or
you may find yourself worse off as a consultant than as an employee.

Gross salary to be replaced £30,000 £40,000 £50,000 £75,000 £100,000
Pension £4,500 £6,000 £7,500 £11,250 £15,000
Expenses £20,000 £20,000
Total £20,000 £20,000 £20,000 £1 06,250
Daily rate for 1 40 days £54,500 £66,000 £77,500 £135,000
Daily rate for 1 00 days £759 £964
£389 £471 £554 £1 ,063
£545 £660 £775 £1,350