Setting your fees for client billing. setting your fees is the fun part. Now, don't go crazy and pluck a number out of the sky, do your research into your competitors and find out what they charge clients. It may vary depending on your experience and your industry. But there's no harm in doing attempt to check with colleagues and peers, test out your thinking. Don't ask your friends unless they will be your paying clients, but acts those work in the industry.
So your peers, those are really consulting and recruitment firms. And of course, you can always turn to drastic Google, you will need to ask yourself some questions. We will charge by the hour or you do a day rate, offer a retainer. Or maybe we'll do a combination. You need to factor in the amount of money you need to live on the type of the type of business you set up limited or sole trader. You will need to pay yourself a wage money earned.
And of course she's pay a tax man and the National Insurance Contributions. Remember to keep an eye on your money. You are now responsible for invoicing clients and chasing up payments, be sure to have a good contract in place with payment terms and clearly state the process for late payments. I always remember my old cmo, CEO of mo company, the last place where I was actually an employee's telling me to make sure I keep a close eye when invoicing clients and to charge late payment fees and now actually see why it's a different ballgame than being an employee. You can't just sit back and expect to get paid on the first or last day of the month. You know, you might be used to getting that now in the current employed job where you get paid on the first of each month for the 15th it's a different ballgame when it comes to working for yourself.
And it depends on how you invoice so you may find that payments come in at different times. And really on time, if you work for a client for six months and you know off for a few months and you invoice them at the end of the month, you'll have to wait for payment, even if you specified immediately pay them seven to 14 days, things happen. oversights occur. So be prepared. Some clients, I have a great paid on time and I was I have to chase a notch. So do factor in and also factor this in when it comes to holidays like Christmas and key dates that are in your life.
And don't be scared to apply a late fee. Because, you know, you can give them maybe having a process where you say okay, you know, the three warning free strikes and that's it you're out because we see somebody you're working with startup as a new mitigating the processes together. But for others, it's a case of maybe it's a lack in the financial department. But this is one area for consultants, and freelancers where it can be a bit tricky. So making sure you have a strong contract which will be coming in shortly and making sure that you are clear on the terms is crucial.