How to avoid too much work when self employed

[pudding]

This might be a bit random.

I work for self as a handyman contractor. I like my work and I don't want to fully retire, though I probably could if I sold my assets..

About 2 months ago I came up with a plan to just work enough to support myself for the summer months, enough to pay the bills and then take it easy.

It being summer though the phone rings and good projects that I can earn a lot of money doing.

But it kind of takes over my life.... I did one job and she needed it done asap to sell her house, next a friend who bought a place and needed it doing asap as she had from 1st to 15th to have the work done, she kept piling more and more stuff on, so I ended up working the weekend and until 8 or 9 at night... (and earning about 400 to 500 a day, so not all bad news) then my back went. Next customer calling asking where are you ... and... I hope your not going to let us down... another that is a good customer called today about something we discussed months ago and wants that doing soon..

I know I'm fortunate and that its a quality problem    .... but today I was thinking screw this!   I went in my friends record store yesterday after work, sat in a chair and I just fell asleep in about 2 minutes.

I missed all the free music festival a couple of weeks back, and I always seem to be tired and live in my work clothes.

Im thinking I have to maybe have some ready made excuses for when people call.  If I say I'm taking it easy this summer, it doesn't go down too well.  Thinking to say I have a big project to do, or I'll be away visiting family.... ways to put it that don't get people feeling resentful.

Anyone else deal with the ups and downs of contracting etc..?

[startingsmall]

I have yet to have this problem with my side gig....  but the standard wisdom is that if you're too busy, your prices are too low. Time to give yourself a raise.

[Rezdent]

Yes, raise prices.  Try doubling at first.  You will lose some work, but net about same money.

[BlueHouse]

I've been very frustrated trying to hire handymen in my location.  Most seem to be very flaky -- they don't return calls or just don't show up.  It's good to hear another side of the story. 

I guess I would suggest specializing in something.  For instance, specialize in mounting TVs to walls and running the wires through the drywall.  Or specialize in small woodworking projects, or electrical stuff, or ceiling fans or installing security cameras.  One guy near me only puts together Ikea furniture!  Another guy hooks up OTA antennas on roofs.   Maybe hook up with a high-end furniture store -- that's where I found one handyman, but he only does jobs for that store, so he may or may not accept an additional piece of work and will say "I don't really do that". 

[pudding]

Start by scheduling in your priorities. They can be concerts, rest in the evenings, naps, or staring at the wall. Whatever makes your life nicer, put it on your calendar. Then, when people want you to do their projects, you can see if they fit in your schedule. They might have to accept a longer timeline or find someone else.
See examples here.
http://www.choosebetterlife.com/say-yes-to-your-priorities/

Thanks Julie, sounds like good advice. I'll check out the link too.

[gooki]

Learn to say no.

Then find some other reputable trades people/companies you can forward them onto.

[Suze456]

I got told "I'm booked up until October, do you want me to put you in for then?"

[Syonyk]

Jack your rates until either the work drops or you're getting compensated enough for missing other events.

Warning: jacking rates to reduce work takes a lot more of a hike than you'd expect.

[AdrianC]

Great advice already.

I'm an engineering consultant and have the same "problem". More work than I want, anymore. I'd like to do a bit to keep my hand in, and I quite enjoy it anyway. I don't want full time anymore. I want control of my schedule.

I first raised my rates, but not enough because it had little effect. So I took the strategy mentioned by Suze456: "I'm booked up until October, do you want me to put you in for then?" I think its better than an outright "no" from a marketing perspective. Sure, you lose work to competitors and will lose some repeat customers eventually. You can weed out the less desirable ones.

And it's not lying, I really am booked up, what with vacations, canoeing, cycling, camping, reading, walking, playing with the kids, posting on message boards; I'm booked solid.

[Syonyk]

Firing annoying customers is also good advice.

I'll give someone slack once or twice about late payment. Beyond that, I'm just too darn busy to deal with them again.

[webguy]

I had a similar problem when I used to work as a freelance web developer. I'd get too many projects but they were all too good to turn down. I'd end up burning the candle at both ends in order to do them all, but it sucked.  It can be difficult to raise rates with existing clients, but you can certainly raise rates with new clients. I started doing this and would get less projects, but the ones I did get paid really well and the clients were better to work with.  I also found another couple of reputable web developers and when I got an inquiry about a project that I didn't want to do then I just told them that I was fully booked for the next 6 months but could refer them to someone else. This seemed to go down fine. I even arranged a deal with the developers I referred them to that if they ended up doing the project then I'd get a 15% cut. Free money!

It sounds like you're kinda burnt out. Why don't you finish the jobs you've committed to and then take the next few weeks off? If anyone inquires about a job then just tell them you're unavailable until the end of August but will be able to do it then, or you can refer them to someone else.  You're your own boss. Take a vacation!!

[pudding]

Thanks for all the replies, some great advice. 







Thanks!


Ok I think I have the way forward..

1. Raise rates a bit for existing clients. More for new enquiries.

2. put the good stuff in the calendar and then fill the blanks in with good jobs I want to do. Anything beyond that and just say I'm booked solid but can fit you in at the end of October etc...

3. Do the jobs I've committed to at the moment and take a few weeks off.

4. say 'no' to things that will over run my schedule or look like heavy duty renovations!  and 'no' to customer demands to 'fit it into a tighter schedule'  'no' I can't do that... 'no' I have plans for that day...

5. Have a list of people I could refer them to.

6. Enjoy life... !

[Fresh Bread]

This is all great advice that I needed too for my business.

By what % do you think it's reasonable to raise rates for existing customers that you like? I haven't increased prices for my very regular regulars in the two years since I started. The occasional customers got a 12% increase about a year ago - do you think I can increase prices again so soon?

I'm going to raise rates for new customers, but that's the easy bit!

[pdxmonkey]

5% is probably easy to say it's 2 years inflation. 10% is a much harder sell. If you like these customers, they're regular and easy to serve as compared to occasional go with the 5%. Depending on your business and what your competitors have been doing these might not be the right numbers, but they seem like a pretty good general number right now.

[Syonyk]

I generally leave rates alone for existing customers that I like.

Or, I hike rates and then offer a pre-payment discount.

"Payment is due net 30, 15% discount for Net 15 payment."

[magicj]

This is definitely not random at all. I am still a good 30 years from retirement, but know that I would feel good finding a young guy that could learn from me. Gradually teach him things, and eventually can do things on his own. That leaves you to do what you want, and then when it is time you can pass the torch to him.

[ketchup]

GF is self-employed (photographer).  When she was drowning in work, tripling her rates did the trick.  So now she does about half as much and makes slightly more.

[galliver]

Disclaimer: I have no personal experience with the self employment sphere, or law, etc. but...

You mentioned a customer that kept adding things on which ended up keeping you working late on the weekend, and that seems like a totally unacceptable way for the customer to treat you. I don't know if you do already, but I would insist on a written set of requirements/plan/contract as a way to keep everyone honest about what was promised and what constitutes additional work. Maybe to be more customer-friendly, offer a small discount if work goes over schedule (perhaps by more than a certain amount, and/or excepting out-of-your-control circumstances like weather, something on backorder, unknown/undisclosed issue, etc)?

[LadyStache in Baja]

Love these ideas.  My husband is a contractor and we are blessed right now with too much work.  Time to start using the calendar, be willing to let some go if they're not willing to wait for our openings, and I love the doubling rates idea!

[Fishindude]

I've been contracting for 40 years, have 65 employees.   What you have is a good problem, you just need to get it under control.

1.  Separate work life from home life.  I'd suggest moving your place of business out of your house.  Do your work at work, close the door when you are done for the day and leave it there.

2.  Set some hours and boundaries.  Do not take business calls, texts or emails during personal time, do not work on estimates after hours, etc.  Keep separate work and home phone, email, etc. 

3.  You can't do it all.  Hire some help to do the day to day grunt work so that you can be working on your paperwork, rounding up materials, meeting clients, etc. during normal daytime hours rather than evenings.   Pay your help well and make it attractive to work for you.   Also, use subcontractors for specialty work.

4.  Reasonable rate increases aren't a problem, but don't get silly with your rates if you are satisfied with how it is working.  However, don't be afraid to turn down business rather than get yourself overloaded.  Taking on too much will get you in trouble. 

5. Learn accounting basics and meticulously track costs so that you know exactly what your true cost of doing business is.  do not intertwine business spending with personal spending.

Best of luck, looks like a great opportunity.

[Much Fishing to Do]

Sounds like it would be easy for you to change rates per project, so just give a rate that makes it worth it, whatever that number is.  There's no reason it has to be near any market rate.

[TVRodriguez]

Ok I think I have the way forward..

1. Raise rates a bit for existing clients. More for new enquiries.

2. put the good stuff in the calendar and then fill the blanks in with good jobs I want to do. Anything beyond that and just say I'm booked solid but can fit you in at the end of October etc...

3. Do the jobs I've committed to at the moment and take a few weeks off.

4. say 'no' to things that will over run my schedule or look like heavy duty renovations!  and 'no' to customer demands to 'fit it into a tighter schedule'  'no' I can't do that... 'no' I have plans for that day...

5. Have a list of people I could refer them to.

6. Enjoy life... !

Dude, I totally just wrote this list down for myself.  I'm not a contractor; I'm an attorney, but the same principles apply.

[gooki]

The other option is not to charge an hourly rate, and simply charge a total labor rate per project.

That way your free to raise and lower it based on demand.

[Fishindude]

I huge rate increase is dumb.
If clients see that, they will look at it as "predatory pricing", and that's not good for your reputation.  Clients talk.

Why waste the time pricing something you don't want?
Just be honest and turn down the business.

[soccerluvof4]

I agree with several others comments on here. I have several friends in trades that have focused on one or two things they like doing and have continued to raise their rates. I suggest you do the same. Supply and demand. Once this bubble bursts , and it will, a lot of that work will wind down so get it while you can.!! If your getting the calls your obviously talented and trustworthy so no need to feel guilty charging more.

[pudding]

I dont really want to be in the high range of what trades such as mine charge. I get paid well and I make a good living. If it gets really expensive people get a bit resentful sometimes. Always watching the clock.

I like a lot of my customers, and I've been to their parties and had millionaire female customers give me their phone number things like that. I even had one customer inexplicably give me 10,000 for a job that I quoted her 1800 for. 

It's a strange thing in life that I've got rich and in part because people seem to want to give me a hand.  My accountant once lent me $130,000 for 2 weeks so I could pre pay 20% of a mortgage and pay less of a re fi penalty.

I had no collateral and she just had me sign an IOU and promise to pay it back... which I did.  Feel like Im reading a chapter from 'the secret' lol