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Why you can't make money charging $25 an hour.(Measuring Up)

Many small contractors mistake wages with what they should charge a customer for their services. Since many contractors start out moonlighting and doing side jobs, such logic is understandable. Unfortunately, side work is just that, side work, and the part-time contractor is probably earning most of his or her livable income through regular employment. Plus, I suspect many part timers are taking cash and not paying taxes on their part-time work.

So let's develop a simple budget for a small start-up contractor. The costs shown in Figure 1 are purely fictitious and have been put together just to use for our example. While your numbers may vary, you can determine similar ...

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