It’s an exciting time to be self employed and have the assurance of a job during the growing unemployment percentage. Small businesses account for 86% of new jobs and 60% of the work force in the United States! However, 33% of new businesses will fail within just a few months. The number one reason businesses fail is not because of poor production, the key difference is knowledge.

The biggest pitfalls of starting a business is in the marketing and administration of your company. For example, part of your roles as a new business owner is in planning and management of your finances.

A great way to investigate and plan your company’s money is to use a billing rate calculator to gage your income and expenses.

Start with income based on your hourly rate and projected number of working hours on an annual basis. From there you will be able to see see your gross income and your adjusted gross income based on expenses including things like taxes, insurance, and office expenses.

There are several online tool available, but we recommend the CMI Interactive Billing Rate Calculator that comes with your small business tools package. It’s a great way for independent contractors to gain the knowledge they need to stay out of that 33% of failing new businesses.

Learn more at CMI Interactive