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Establishing Work Units for Capacity-Based Retainer Businesses.

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Under Construction

I’m working on making this a simple tool to estimate capacity and set pricing.
You want to be able to sell professional services without exceeding your capacity or giving the impression to your clients that you are double or triple booking your time.
Reset control value
⁠
⁠
Work period has a start date of
1/1/2024
⁠
and an ending date of
12/31/2024
⁠
.
The period covers
365 days
⁠
, which only some of the days you can work.
There are
262
⁠
net working days during the period without accounting for holidays, vacations, and other periods of unavailability.
With
19
⁠
holidays to consider, that leaves you with
243
⁠
net working days.
You have
21
⁠
working days per month to offer clients and up to
10
⁠
days set aside as weekends or holidays.
With an estimate
8
⁠
(
⁠
) hours allocated per work day, you should expect to record
168
⁠
hours monthly,
39
⁠
hours weekly.
If you want to earn
$200,000
⁠
(
⁠
) Per Year or
$16,667
⁠
Per Month, then we need to sell
21
⁠
work days at
$794
⁠
Per Day (
$99
⁠
Per Hour).
If you increase your pricing by
10%
⁠
⁠
$873
⁠
(
$109
⁠
Per Hour), you will only need to book
20
⁠
days per month to meet your goal.
⁠
But I plan on working way more! Why don’t I have 50 or 60 hours a week estimated.
The goal with this exercise is to underestimate your absolute capacity to account for any surprises. You’ll end up working more, but you won’t commit to more than you can handle.
We want to determine the net working days during the period to give us an idea of the days we can be productive for our clients.
You can work weekends, but your clients and vendors might not be. Excluding weekends and limiting daily work hours ensures you have enough capacity for any issues that crop up.

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