Hewlko News - Top 5 things to consider when creating an estimate
Top 5 things to consider when creating an estimate.
June’s newsletter was dedicated to coming prepared to an initial meeting so that your design team can create an estimate that makes sense for your project and budget. So, this month I turn the tables and let you in on some additional items I consider when creating an estimate.
To create an initial estimate I use the dollar amount I charge per hour, times the estimated hours I think it will take to complete the project. I have always used a time-tracking system, so it makes it easy to pull information and see average time allotments for similar projects. But sometimes there are other factors at play and in today’s newsletter, I explore the top 5 additional considerations I take into account before taking on a project or new client.
Portfolio piece
If the project has the potential to become a portfolio piece or a case study, then it has the ability to garner more work for my business adding to the value of project.
Relationship builder
Sometimes the initial project can test the working relationship to see if you and your client are a good fit. Initial projects typically take a little longer as you are getting to know your client’s brand. But, if the project leads to a long-term relationship, the overall value of that client increases making the project worth taking on.
Compensation
If the project is not of interest to you or the timeline is super tight, but you know you’ll do a good job, you can think of what might make that project worth it for you. For example, it could mean increasing your rate or some form of contra exchange.
Learning experience
If you can learn from the experience or it adds to your overall set of skills, it can add to the value you’ll get from doing the project. For example, I was recently asked to design a website using an online software called Figma (similar to XD or Sketch), because the tool allows multiple contributors and the developer to pull all of the content directly from the software. This meant the project took more time because I had to account for learning a new tool, but the value of the project stayed the same meaning I make less per hour on this project. But ultimately, I had the opportunity to add to my overall skillset, making the project a valuable learning experience.
People equal time
Over the years, I have found one of the determining factors of a smooth project relates to the number of stakeholders that are included in the process. An increase in the amount of invested people in the process tends to add time to the overall project as you are gathering and incorporating more and often complicated levels of feedback. If you have one stakeholder the feedback loop is quick. Adding a couple hour buffer time to a project with many stakeholders can be a good thing. If it ends up going smoothly and you have extra hours to spare you can make your client even happier by putting that budget to additional items that round out their toolkit.
Q&A with Lourdes Juan
This month I had the privilege of sitting down with powerhouse business woman and community leader, Lourdes Juan for a Q&A session. I truly enjoyed getting to know Lourdes better, and found her story inspiring. I hope you do too!
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