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How to Get a fabulous market on a budget

How to make a budget

We explain how to make a professional budget capable of convincing your clients. We tell you from the criteria to consider to set the prices appropriate to your product or service to the basic data that you must include, how to detail the concept and other tips and recommendations that you must take into account when making your budgets

A budget is one of the key documents for any freelancer or freelance, especially if their activity involves the provision of services or if the price of their products is not closed.

The budget is, in addition, the letter of presentation of every professional and is, in many occasions, the first contact with a client, so it is a tool that must be used with care, since incorrect use can be decisive to make us lose a possible buyer or user.

While it is true that the price is often a determining factor in the decision of the user, a budget can add value to our product or service, since it allows us to show our expertise or implement different marketing techniques to make our offer more attractive to the customer.

When a professional thinks about how to make a budget, he should try to balance the total expenses, the hours of work and resources consumed and the profit margin that he wants to obtain.

Making the right budget for each project or client can be an art, but always from transparency and common sense.

1. Criteria to fix prices in your budget

The fixing of prices is a subject that gives for another whole article, since it depends on various factors, criteria and casuistry. However, given its importance when making a budget, we have included these basic criteria at the guidance level:

Cover costs: many freelancers and freelance professionals must first analyze what is the hour price to pass on their work based on their fixed and variable costs and the distribution of their work time. Infotainment puts at your disposal a template for calculating the hourly price. The price of labor will have to be added to the cost of materials or expenses directly associated with the work to be done.

Profit margin: on the cost of work, the self-employed will define a percentage of business profit. Its amount will depend on the commercial strategy with the client and on whether the costs are low enough to allow it.

Market price: it is important to have references of the prices of the competition and also of how far the customers are willing to go, both above and below.Fashion market place one of the most popular Jolpakhi Fashion

Promotions: the self-employed must evaluate the inclusion or not of possible promotions to make their offer more attractive.

There are two common mistakes that you have to try to avoid when setting prices:

A price too low devalues ??the value of your work, your product or your service, in addition to running the risk of not covering costs. Also, if you start with prices too low, then it will be more complicated to increase them to get a real benefit. A price that is too high or too much above the average market price or the added value that your product or service can offer can make you lose a client before, even, starting a negotiation. If you choose to move in a high price range, above the average of your competitors, be sure to justify that price increase properly or provide an added value that balances the quality / price ratio.

2. What should a budget include?

A budget must be clear, concise and detailed. There are several techniques to write a budget, but, whichever option you choose, the most advisable is that details to the maximum each and every one of the elements that constitute in service, so that the client knows exactly what he is paying .

There are a series of basic elements that every budget should include:

 Data of the company / service provider:

In this section you should detail the details of the company or professional providing the service, such as the name or business name, the NIF or CIF, the tax address and other contact information, such as telephone and / or email.

Client data:

The budget should reflect the name of the client (either private or company), as well as your CIF or ID and address.

 Concept:

The concept details the elements that make up the product / s and / or the service (s) budgeted.

In this way, the concept can include different products and services, in addition to working hours, materials used and, where appropriate, other associated costs, such as contracting other third party services, licenses, supplies ...

In this section we must include the number of units of each element that makes up the concept, the unit cost of each of them and the total cost of each group of units of the same nature.

 Amount:

The amount has to be broken down indicating the tax base, that is, the sum of the concepts without VAT, the percentage of VAT that is applied and the total amount of the budget, which results from the sum of the tax base plus VAT.

 Pay mode:

It is important to study the payment method of each budget. Normally, when the amount is not high or does not require the prior acquisition of material, advances are not usually established. But in the case of a large amount budget or that involves a significant acquisition of material or contracting services from third parties, it is advisable to agree on the advancement of a percentage of the total amount.

In this section you can also specify the means of payment, either by bank transfer or deposit or in cash.

3. Other elements of the budget

In addition to the mandatory elements described above, there are several techniques that can help us make our budget more attractive and generate greater confidence in our client.

Delivery term:

Including the deadline for delivery of a finished project or, even, the intermediate periods of the different stages is an important resource to add value to our service. However, when a budget becomes legally valid, it is important to comply well with these deadlines and plan them in advance.

Guarantees and technical support

There are certain services or projects that may need to be endowed with certain guarantees (especially when it comes to long-term services) or technical support, which does not have to be included in the amount of the service itself and that must be budgeted to part.

A good technique to make our budget more attractive is to offer this technical support free of charge for a certain period of time.

Legal conditions:

Add the legal conditions you deem necessary to avoid misunderstandings or abuses by any of the parties. In this way you can prevent an inadequate interpretation of what is stipulated in the document and save problems, time and money.

Format:

Sometimes it will be necessary to present the budget with a different format, such as a proforma invoice or a proposal for a commercial contract for the provision of your services implicit in the budget. This last modality is usual for commercial agents, trainers or programmers who develop their work continuously over time.

4. Recommendations for a good budget

To provide your budget with added value, you can include certain elements that will help you in the sales process. Always remember to avoid "literature" and be concise.

Present the client's problem from your professional vision, making an analysis of it.

Make your proposal: show how your business or company can help your client to find an answer to their problem.

It includes a work plan in which, in addition to selling and explaining the methodology and the way you have to do things, you can explain to your client in a more practical way how he will spend his money. Scope of work

You should try to avoid a common error, which is to detail what is included, but not to leave in writing what is not included. Not recording what does not include the budget can lead to misunderstandings, since in many cases the client can assume that certain "extra" items or services that we had not included in the offer are budgeted.

In our utilities section you can download a customization budget model

If you are starting as a freelancer, we recommend that you value the possibility of using a billing tool that will help you to better control and manage your accounting, facilitate the preparation of invoices and allow you to generate and present tax models.

For this reason, we encourage you to try the online billing application, which you can access for free forever just by being registered in the Personal Information. In addition, you can try the Ultimate Plan with all the functionality for 30 days and without obligation.