Earlier this month, I asked my readers how they were doing with their 2021 goals. And I got a ton of great replies. So today, I thought it would only be fair to share the real numbers from my own goals for 2021.
I have two objectives for my business this year:
#1) Make $200,000 in revenue.
#2) Work no more than 1,200 hours.
And while everyone loves to focus on how much money they make…
The second part about how much time I’m working is actually more important to me.
Because it’s relatively easy to make more money just by working more hours.
But that also leads to exhaustion, burnout, and less freedom.
Which is the opposite of what I want for myself.
Also, for context, last year I made around $150,000 and worked roughly 1,200 hours.
Which means another way to look at my goals for 2021 is that I want to work no more than I did last year. While also earning an extra $50,000.
So how am I doing? Take a look…
First, Here’s Where Things Stand With My Revenue Tracker Halfway Through The Year
Right now, I’m projecting to make $214,106.
I got that number by starting with the $120,356 I’ve already made this year. (Which is the green line in the chart.)
Then I add the income from all my monthly retainers — assuming they will all continue through the end of the year. And I also add another $20,250 in one-off project income each quarter. (Together, these projections are the dotted blue line in the chart.)
However if you just take the $120,356 I made in the first half of 2021 and double it, that would get me to $240,712.
Which is even more than my $214,000 projection. And it’s so close to a quarter-million, I may decide to ignore my goal to work less than 1,200 hours if I get close to that.
Because it would be pretty sweet to have a quarter-million dollar business. And it might be worth putting in some extra hours to get there.
Also, Speaking Of Hours, Here’s Where Things Stand With My Time Tracker Halfway Through The Year
Also looking okay here with a projection of 1197.5 hours.
But that means I have a razor-thin margin of just 2.5 hours before I go over my goal of working no more than 1,200 hours.
I got this projection by starting with the 672.5 hours I’ve worked this year. (This is the dark blue in the chart.)
Then I project working an average of 21 hours per week for each week left in the year. (This is the light blue in the chart. And since a week is 7 days, but a month is 30 days, some months wind up with an extra week.)
Only working an average of 21 hours per week is probably going to be hard, though. Even though I do have plans for some vacation time through the rest of the year that will help bring down the average.
Because when you look at the fact I’ve already worked 672.5 hours in the first half of the year, if you double it, that puts me closer to 1,345 hours.
Which is way over my goal.
But I’m actually okay with that…
Because There’s A Third Number I Track To Let Me Know Whether Or Not The Extra Hours I’m Working Are Worthwhile
It’s called my Effective Hourly Rate.
To get this number, I take all the money I make in the business and divide it by all the time I spend working.
Not just time on client projects. Everything.
Accounting. Legal. Sales. Attending events.
Because if my effective hourly rate goes up, it means I’m earning more money for each extra hour I spend on the business.
And I’m okay putting in extra hours — as long as they are adding even more profit to my business.
But if my effective hourly rate goes down, it means that I’m actually earning less money for each extra hour I spend on the business.
And I would not be okay with that.
Here’s the good news, though…
If you go back to my original goal, I wanted to make $200,000 in 1,200 hours or less.
Which is an effective hourly rate of roughly $167 per hour.
And whether you look at my projections for the year…
Or just double my hours and income from the first half of the year…
In both cases, my effective hourly rate is around $179 — which is well above the $167 target.
Take a look…
(The green effective hourly rate number is based on projecting $214,106 in income and 1197.5 hours. And the number circled in red is based on the $120,356 I’ve already made and 672.5 hours I’ve already worked.)
So this is a great sign.
Because It Means That Even If I’m Working More Than I’d Like, That Extra Time Is Bringing In Larger Profits
So as long as I don’t go overboard to the point of burning out, I can be happy with the growth my business is having so far this year. Even if I wind up spending a little more time working than I planned by the end of the year.
Now let me show you how to make freelance clients come to you — like clockwork — using a simple, 30-second conversation…
All the details are inside my free business blueprint 30-Second Referrals.
With this free PDF, you’ll discover how to use a simple, 30-second conversation to get two referrals from every single client you sign. (I’ll even show you exactly what to say during this conversation with my word-for-word script on page 13.)
That way, you can make clients come to you like clockwork. And you can fill your pipeline with more new business than you can handle.
But there is a small catch…
30-Second Referrals is only available to members The Freelance Like A Pro email list.
So enter your best email below to join us and claim your free copy of 30-Second Referrals now. (And you’ll get my members-only emails to help you run a more profitable and stress-free freelance business, too.)
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Thanks for the freelancing guide and the emails that you've been sending out — the 30-second referral method is so stupidly simple, that it's genius!Connor Inch, Freelance Copywriter