Should I take on this proposal writing job and what should I charge?

Question

I've recently been approached by an employer that has denied my job application some time ago due to incompatible schedules. I understand they're still looking for a person to fill that position, or maybe outsource the job instead, because they'd like me to analyze their systems and write a project proposal to address their IT issues.

Now I believe I have proven myself as a specialist to them, since they came up with that offer. However, I've never written a project proposal, but I have a pretty good idea of what it should have in general and in their specific case.

Should I agree to the job that I have no prior experience with? If so, what should I expect to charge them, considering? I know they are a small medical startup, and they also asked me to give them an estimate.

Thanks in advance.

Answer 1

If you have no experience, make sure you are paid by the hour and for your time - not for the result.

You should charge an hourly rate that covers all your costs and a profit that allows you to earn more than normal employment in this kind of job.

Simple Example (numbers completely made up - find them out for your locality): Say you´d earn $500/week net before taxes if employed.

Say you want a 20% profit for taking the entrepreneurial risk.

600$ for your income
 30$ for Professional indemnity
 50$ downpay for work-equipment
 50$ for office space
100$ health insurance 
 60$ for retirement plan
 ... what else costs you may have

890$ add 4/53 for holidays and 2/53 for sick-days etc.

You probably need one day a week for bookkeeping/invoicing/advertising etc. So you´d have to earn 1090$ in 32 work-hours, you should charge a minimum of $35 per hour!