A self-employed person often has the opportunity to profit from
sound management of a task. Where the worker quotes a genuine fixed
price for a job, then the level of profit or loss will depend on
the speed and efficiency of the worker and the capacity to reduce
overheads and organise work effectively. A workers income may be
related to his or her efforts or to other factors and so may not be
regular or constant. It may depend on how long he or she works and
that in turn could depend on outside factors such as the weather.
For example, a company may engage a consultant to thoroughly
review a business process and report to the board with acceptable
suggestions for improvements or a whole new process. The consultant
agrees a fee of £20,000 and that the report has to be
completed within three months. There may also be penalty clauses
within the contract. Clearly the consultant might be able to
complete the report well within the three-month deadline.
