Design

Management
 TOPIC 5. MONEY AND FINANCE MANAGEMENT

Design Management Osiris De los Santos

 HOW CAN WE OFFER OUR WORK?

Design Management Osiris De los Santos

 HOW CAN WE OFFER OUR WORK?

TO BE EMPLOYED

SELF-EMPLOYMENT

OPENING A BUSINESS

Design Management Osiris De los Santos

 THE CONSTANT ANXIETY NOT KNOWING

WHAT WILL HAPPEN

TOMORROW
Design Management Osiris De los Santos
 MONEY PERSONAL

FINANCES BUSINESS

FINANCES MEANS MONEY

Design Management Osiris De los Santos

 TYPES
OF
EXPENSES
Design Management Osiris De los Santos
 HOW TO CALCULE YOUR SALARY?

Design Management Osiris De los Santos

 PERSONAL
AND
BUSINESS
EXPENSES

Design Management Osiris De los Santos

 INCOME bank 2
EXPENSES
for sales: fixed costs:
-your salary
-products -supplies
-services -hosting
-rent
-administration
-taxes
-financing
variable
expends:
-materials
* bank 1: business account /
-logistics
bank 2: personal account
-staff

Design Management Osiris De los Santos

 Task 1 Money and finance management

Now it’s time to calculate your business’s fixed expenses.

We’ll start with your salary

Design Management Osiris De los Santos

 There’s a drive folder
where you will find all the
templates that we will use

*open the folder and download the files*

Design Management Osiris De los Santos

 NOW IT’S TIME
TO DETERMINE YOUR
HOURLY RATE

Design Management Osiris De los Santos

 Task 2 Money and finance management

To calculate your hourly price by applying the data you

have collected in the previous task.

Design Management Osiris De los Santos

 The first thing to do is fill in the yellow boxes.

This it’s about the time we dedicate to our business.

Don’t fall to temptation and write zero, zero, zero.
Consider if you might get the flu and need a few days of rest.

Design Management Osiris De los Santos

 Non facturables hours, which are all those necessary and
essential hours that make the business function, but don’t
generate income.

This is your hourly rate need to pay for the fixed business
expenses.

Design Management Osiris De los Santos

 SELLING PRICE
Our retail price

IT’S TIME TO ESTABLISH A PRICE FOR YOUR

PRODUCTS OR SERVICES.

Design Management Osiris De los Santos

 FIRTS, DETERMINE WHAT PRODUCTS AND
WHAT SERVICES YOU WANT TO OFFER

PREMIUN WEB

ILLUSTRATION

BRANDING

LOW WORKSHOPS
FREE
TUTORIALS

Design Management Osiris De los Santos

 Task 3 Money and finance management

Create a document listing the services/products that you want to offer and
defines how many hours you dedicate to completing each project, on average.

THINK ABOUT HOW TO OPTIMIZE YOUR

PRODUCTION TIME
We say: “I can’t force it, i don’t know if i’ll be inspired, or if it take one or
three hours”

There’s a time margin, but you have to establish limits.

*always consider a day or two of margin*

Design Management Osiris De los Santos

 Variable expenses (materials, people invol-
ved in production, machinery)

+
Hourly rate

+
SELLING Earnings: ideal a minimum of 40%

+
PRICE IVA (16%)

+
Card fees or payment method

+
Shipping costs if applicable

Design Management Osiris De los Santos

 EXAMPLE
$300

+
$400 x 6 h = $2,400

+
$960

SELLING +
PRICE $585.6

+
Card fees or payment method

+
Shipping costs if applicable

Design Management Osiris De los Santos

 CHALLENGE 5. CALCULATION OF COSTS
REQUIREMENTS
Notebooks or sheets of paper, pens or pencils, an Excel spreadsheet,
and a calculator.

INSTRUCTIONS
• Identify and list the various costs associated with your creative service.
This should include fixed and variable costs, as well as direct and indirect
costs.

• Calculate your hourly cost by considering salaries, taxes, and benefits rela-
ted to the time spent on the creative service.

• Set a target profit margin on your hourly cost. Determine how much profit
you aim to make.

Design Management Osiris De los Santos

 CHALLENGE 5. CALCULATION OF COSTS
• Using your hourly cost and target profit margin, calculate the selling
price to the public. Create a document listing the services/products and
their final prices.

DELIVERABLES

A spreadsheet detailing fixed, variable, direct, and indirect costs, along

with the calculation of hourly costs.
A PDF file with a list of services/products and their public selling prices.

DEADLINE
Saturday, Feb 24, 11:59 p.m.

Design Management Osiris De los Santos

OSIRIS DE LOS SANTOS
osiris@tecmilenio.mx
229 183 4445