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TryOwning · Consulting or agency · Lesson 1
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Consulting or agency · 14 min

Selling hours

When you consult, your time is the product. How you price it, write it down and get paid for it decides whether a good month adds up to a good year.

HOURS
Your business

Pick the business you'll run

Each lesson uses your pick for its numbers. You can change it any time.

What kind of practice

Solo consulting practice

About 14%bls.gov ·2025 of management analysts work for themselves.

Small design or marketing studio

A web designer's median pay was $50/hourbls.gov ·2025 in May 2025.

Firm with junior staff

At CRA International, a consulting firm, 17%sec.gov ·2025 of 2025 revenue came from fixed prices.

Pick a business to start.

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Sources and every number (13 sources)

Sources

  • Nonemployer Statistics 2023 datasets: United States file nonemp23us (NAICS 5416, Management, Scientific, and Technical Consulting Services, by receipts size class) · U.S. Census Bureau, 2023
  • Occupational Outlook Handbook: Management Analysts (pay: median wage, May 2025; work environment: jobs and self-employed share, 2025) · U.S. Bureau of Labor Statistics, 2025
  • CRA International, Inc. Form 10-K for the fiscal year ended January 3, 2026 (fiscal 2025) · CRA International, Inc. (filed with the U.S. SEC), 2025
  • Occupational Outlook Handbook: Web Developers and Digital Designers (pay: median wage, May 2025) · U.S. Bureau of Labor Statistics, 2025
  • Occupational Outlook Handbook: Market Research Analysts (pay: median wage, May 2025) · U.S. Bureau of Labor Statistics, 2025
  • Occupational Outlook Handbook: Graphic Designers (pay: median wage, May 2025) · U.S. Bureau of Labor Statistics, 2025
  • Self-Employment Tax (Social Security and Medicare Taxes) · Internal Revenue Service, 2026
  • New York General Business Law section 1410: Definitions (freelance worker) · New York State Senate, 2026
  • New York General Business Law section 1411: Contracted compensation payments · New York State Senate, 2026
  • Estimated taxes · Internal Revenue Service, 2026
  • Instructions for Forms 1099-MISC and 1099-NEC (Rev. December 2026) · Internal Revenue Service, 2026
  • Huron Consulting Group Inc. Form 10-K for the fiscal year ended December 31, 2025 · Huron Consulting Group Inc. (filed with the U.S. SEC), 2025
  • New York General Business Law section 1412: Written contracts · New York State Senate, 2026

Every number

  • 1.1 millioncensus.gov ·2023 · US consulting businesses with no employees (management, scientific and technical consulting), 2023.
  • $59,836census.gov ·2023 · Worked out: what those businesses took in during 2023, divided by how many there were.
  • 59.1%census.gov ·2023 · Worked out: the share of those businesses that took in less than the next number in 2023.
  • $25,000census.gov ·2023 · One of the Census's lines for grouping businesses by what they took in.
  • 14.2%census.gov ·2023 · Worked out: the share of those businesses that took in at least the next number in 2023.
  • $100,000census.gov ·2023 · One of the Census's lines for grouping businesses by what they took in.
  • $101,860/yearbls.gov ·2025 · Median yearly pay for management analysts, all industries, May 2025.
  • 14%bls.gov ·2025 · Share of management analysts' jobs held by self-employed workers, 2025.
  • 17%sec.gov ·2025 · CRA International, fiscal 2025: revenue from fixed-price work as a share of revenue.
  • 83%sec.gov ·2025 · CRA International, fiscal 2025: revenue billed by the hour (time and materials) as a share of revenue.
  • 12 hoursexample (example number: Simplified example: the bakery survey proposal: manager interviews.) · Simplified example: the bakery survey proposal: manager interviews.
  • 10 hoursexample (example number: Simplified example: the bakery survey proposal: writing and running the customer survey.) · Simplified example: the bakery survey proposal: writing and running the customer survey.
  • 14 hoursexample (example number: Simplified example: the bakery survey proposal: making sense of the answers.) · Simplified example: the bakery survey proposal: making sense of the answers.
  • 8 hoursexample (example number: Simplified example: the bakery survey proposal: the report and the presentation.) · Simplified example: the bakery survey proposal: the report and the presentation.
  • 44 hoursexample (example number: Simplified example: the bakery survey proposal: the hours estimated, added up.) · Simplified example: the bakery survey proposal: the hours estimated, added up.
  • $150/hourexample (example number: Simplified example: the bakery survey proposal: your hourly rate.) · Simplified example: the bakery survey proposal: your hourly rate.
  • $6,600example (example number: Simplified example: the bakery survey proposal: worked out, hours times the rate.) · Simplified example: the bakery survey proposal: worked out, hours times the rate.
  • 15%example (example number: Simplified example: extra added to the estimate for surprises.) · Simplified example: extra added to the estimate for surprises.
  • $990example (example number: Simplified example: the bakery survey proposal: worked out, the buffer share of the estimate.) · Simplified example: the bakery survey proposal: worked out, the buffer share of the estimate.
  • $7,590example (example number: Simplified example: the bakery survey proposal: worked out, the estimate plus the buffer.) · Simplified example: the bakery survey proposal: worked out, the estimate plus the buffer.
  • 50%example (example number: Simplified example: the share of the fee paid before work starts.) · Simplified example: the share of the fee paid before work starts.
  • $3,795example (example number: Simplified example: the bakery survey proposal: worked out, the deposit share of the fixed fee.) · Simplified example: the bakery survey proposal: worked out, the deposit share of the fixed fee.
  • 4 hoursexample (example number: Simplified example: the dentist's logo and website proposal: a call and a written brief.) · Simplified example: the dentist's logo and website proposal: a call and a written brief.
  • 12 hoursexample (example number: Simplified example: the dentist's logo and website proposal: logo ideas.) · Simplified example: the dentist's logo and website proposal: logo ideas.
  • 6 hoursexample (example number: Simplified example: the dentist's logo and website proposal: two rounds of changes.) · Simplified example: the dentist's logo and website proposal: two rounds of changes.
  • 20 hoursexample (example number: Simplified example: the dentist's logo and website proposal: designing and building the pages.) · Simplified example: the dentist's logo and website proposal: designing and building the pages.
  • 42 hoursexample (example number: Simplified example: the dentist's logo and website proposal: the hours estimated, added up.) · Simplified example: the dentist's logo and website proposal: the hours estimated, added up.
  • $100/hourexample (example number: Simplified example: the dentist's logo and website proposal: your studio's hourly rate.) · Simplified example: the dentist's logo and website proposal: your studio's hourly rate.
  • $4,200example (example number: Simplified example: the dentist's logo and website proposal: worked out, hours times the rate.) · Simplified example: the dentist's logo and website proposal: worked out, hours times the rate.
  • $630example (example number: Simplified example: the dentist's logo and website proposal: worked out, the buffer share of the estimate.) · Simplified example: the dentist's logo and website proposal: worked out, the buffer share of the estimate.
  • $4,830example (example number: Simplified example: the dentist's logo and website proposal: worked out, the estimate plus the buffer.) · Simplified example: the dentist's logo and website proposal: worked out, the estimate plus the buffer.
  • $2,415example (example number: Simplified example: the dentist's logo and website proposal: worked out, half the fixed fee.) · Simplified example: the dentist's logo and website proposal: worked out, half the fixed fee.
  • 12 hoursexample (example number: Simplified example: the warehouse plan proposal: the partner's hours.) · Simplified example: the warehouse plan proposal: the partner's hours.
  • $300/hourexample (example number: Simplified example: the warehouse plan proposal: the partner's hourly rate.) · Simplified example: the warehouse plan proposal: the partner's hourly rate.
  • $3,600example (example number: Simplified example: the warehouse plan proposal: worked out, hours times the rate.) · Simplified example: the warehouse plan proposal: worked out, hours times the rate.
  • 40 hoursexample (example number: Simplified example: the warehouse plan proposal: the senior consultant's hours.) · Simplified example: the warehouse plan proposal: the senior consultant's hours.
  • $180/hourexample (example number: Simplified example: the warehouse plan proposal: the senior consultant's hourly rate.) · Simplified example: the warehouse plan proposal: the senior consultant's hourly rate.
  • $7,200example (example number: Simplified example: the warehouse plan proposal: worked out, hours times the rate.) · Simplified example: the warehouse plan proposal: worked out, hours times the rate.
  • 80 hoursexample (example number: Simplified example: the warehouse plan proposal: the analyst's hours.) · Simplified example: the warehouse plan proposal: the analyst's hours.
  • $110/hourexample (example number: Simplified example: the warehouse plan proposal: the analyst's hourly rate.) · Simplified example: the warehouse plan proposal: the analyst's hourly rate.
  • $8,800example (example number: Simplified example: the warehouse plan proposal: worked out, hours times the rate.) · Simplified example: the warehouse plan proposal: worked out, hours times the rate.
  • $19,600example (example number: Simplified example: the warehouse plan proposal: worked out, the three people added up.) · Simplified example: the warehouse plan proposal: worked out, the three people added up.
  • $2,940example (example number: Simplified example: the warehouse plan proposal: worked out, the buffer share of the estimate.) · Simplified example: the warehouse plan proposal: worked out, the buffer share of the estimate.
  • $22,540example (example number: Simplified example: the warehouse plan proposal: worked out, the estimate plus the buffer.) · Simplified example: the warehouse plan proposal: worked out, the estimate plus the buffer.
  • 30%example (example number: Simplified example: a firm's deposit on a bigger project.) · Simplified example: a firm's deposit on a bigger project.
  • $6,762example (example number: Simplified example: the warehouse plan proposal: worked out, the deposit share of the fixed fee.) · Simplified example: the warehouse plan proposal: worked out, the deposit share of the fixed fee.
  • 62 hoursexample (example number: Simplified example: the bakery survey proposal: the hours it really took, after the extra survey rounds.) · Simplified example: the bakery survey proposal: the hours it really took, after the extra survey rounds.
  • $122.42example (example number: Worked out: the fixed fee divided by the hours it really took.) · Worked out: the fixed fee divided by the hours it really took.
  • 6.6 hoursexample (example number: Worked out: the buffer divided by the hourly rate.) · Worked out: the buffer divided by the hourly rate.
  • 55 hoursexample (example number: Simplified example: the dentist's logo and website proposal: the hours it really took, after a third round of logo changes and two extra pages.) · Simplified example: the dentist's logo and website proposal: the hours it really took, after a third round of logo changes and two extra pages.
  • $87.82example (example number: Worked out: the studio's fixed fee divided by the hours it really took.) · Worked out: the studio's fixed fee divided by the hours it really took.
  • 6.3 hoursexample (example number: Worked out: the studio's buffer divided by its hourly rate.) · Worked out: the studio's buffer divided by its hourly rate.
  • 160 hoursexample (example number: Simplified example: the warehouse plan proposal: the team's hours it really took, after the client added a second warehouse.) · Simplified example: the warehouse plan proposal: the team's hours it really took, after the client added a second warehouse.
  • 132 hoursexample (example number: Simplified example: the warehouse plan proposal: the team's hours estimated, added up.) · Simplified example: the warehouse plan proposal: the team's hours estimated, added up.
  • $148.48example (example number: Worked out: the firm's estimate divided by the team's estimated hours, an average across the partner, senior consultant and analyst.) · Worked out: the firm's estimate divided by the team's estimated hours, an average across the partner, senior consultant and analyst.
  • $140.88example (example number: Worked out: the firm's fixed fee divided by the team's hours it really took.) · Worked out: the firm's fixed fee divided by the team's hours it really took.
  • 19.8 hoursexample (example number: Worked out: the firm's buffer divided by its planned average rate.) · Worked out: the firm's buffer divided by its planned average rate.
  • $48.97/hourbls.gov ·2025 · Median hourly pay for management analysts, all industries, May 2025.
  • $50.00/hourbls.gov ·2025 · Median hourly pay for web and digital interface designers, all industries, May 2025. Worked out: the yearly median divided by a full-time year of hours, as the Bureau of Labor Statistics does.
  • $37.87/hourbls.gov ·2025 · Median hourly pay for market research analysts and marketing specialists, all industries, May 2025.
  • $30.27/hourbls.gov ·2025 · Median hourly pay for graphic designers, all industries, May 2025.
  • 15.3%irs.gov ·2026 · The self-employment tax rate: Social Security and Medicare for people who work for themselves.
  • 12.4%irs.gov ·2026 · The Social Security part of self-employment tax.
  • 2.9%irs.gov ·2026 · The Medicare part of self-employment tax.
  • $800nysenate.gov ·2026 · New York: the value of work (alone, or added up with the same client over the next number of days) at which its freelance law applies.
  • 120 daysnysenate.gov ·2026 · New York: the window for adding up work for the same client.
  • 30 daysnysenate.gov ·2026 · New York: with no payment date in the contract, the most days after the work is finished before payment is due.
  • $1,000irs.gov ·2026 · Expect to owe at least this much tax for the year, and you generally pay estimated tax during the year.
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