Creative agencies and contractors: managing money gets a lot more complicated when your projects involve other people.
Maybe you brought in a designer, a developer, a videographer — and suddenly, it’s not just your time on the line. Costs stack up fast. And that profit margin you thought you had? It can shrink before the project is even done.
If you’ve ever wrapped up a project, paid your collaborators, and thought, “Wait — where’s my paycheck?” — you’re definitely not alone.
Let’s walk through a few ways you can keep more of what you earn when the work involves more than just you.
Know What a Project Really Costs
It’s easy to price a project based on what sounds good or what the client says they can pay. But if you’re not looking at the real costs, it’s hard to know whether the project will actually support your business — or drain it.
Clarity here gives you control. You can price with confidence and know ahead of time if the numbers will work for you.
• List every cost upfront
Use a simple spreadsheet or budgeting tool. Add in collaborator fees, your own time (hourly or flat), software and subscriptions, equipment use, licensing, taxes, payment fees, and overhead (like office space, insurance, or marketing).
• Remember the hidden time
Emails, revisions, meetings, project management — these can eat up 20%-40% more time than you expect. Block out some hours for this and assign a dollar value to it.
• Add breathing room
A 10–20% buffer helps cover unexpected client requests, scope changes, or delays from collaborators. You’re taking on risk when you run a project — this is how you get paid for that.
Pro Tip: A project budget template in something like Google Sheets works great. Having a visual of where your money is going helps you spot problems before they happen.
Price Your Work to Take Care of Yourself
When you’re collaborating, it’s tempting to just “cover the costs” and move on. But if you’re running the project — and taking care of the client — you deserve to be paid for that work.
Your pricing should reflect the leadership and value you bring to the table.
• Set a target profit margin
Aim for at least 30%-50% gross profit on projects. This helps cover your leadership time, business expenses, and personal income.
• Mark up collaborator costs
You’re the one managing the process and delivering the finished product. It’s completely normal to add a markup (often 10%-20%) on subcontractor fees.
• Review your rates often
Check your pricing every 6 months or after any major project. Costs go up — and your expertise does too.
Pro Tip: Run a few “what if” scenarios in your spreadsheet or accounting tool. Test different team sizes or project scopes to see how they affect your profit. It gives you clarity when quoting.
Set Clear Expectations with Collaborators
You know how quickly creative projects can drift if expectations aren’t clear. The same goes for your team. A little upfront communication keeps the project — and your profit — on track.
• Be specific about what’s included
Spell out deliverables, deadlines, revision limits, and what happens if things change. This prevents costly misunderstandings.
• Align payment timing
Make sure your payment schedule with collaborators matches how and when your client pays you. You shouldn’t be floating big payments for weeks or months.
• Cover usage rights
Clarify who owns what at the end of the project. If stock photos, fonts, or video clips are involved, be clear about licensing.
• Address communication expectations
Decide how often you’ll check in (weekly? milestone reviews?) and what tools you’ll use (email? Slack? Asana?). Keeps everyone aligned and avoids wasted time.
Pro Tip: After everyone signs the agreement, schedule a quick kickoff call or Zoom. Talking through expectations builds trust and makes sure everyone is on the same page.
Protect Your Cash Flow
Cash flow is what keeps your business running — especially when you’re juggling team payments. If the money coming in doesn’t match what’s going out, even a “profitable” project can get stressful fast.
• Invoice clients in stages
Break payments into milestones or project phases. This keeps money flowing while you work — and protects you from chasing a big lump sum at the end.
• Follow up quickly on late invoices
Set up automatic reminders in FreshBooks, Xero, or QBO so this doesn’t take over your week. Have a clear process for what happens if a client is late.
• Match collaborator payments to client payments when possible
Try to pay your team after or alongside the corresponding client payment. It’s about keeping your own cash flow healthy.
Related article: How to Track Milestone Payments to Improve Cash Flow
Pro Tip: Map out your project payment plan on a whiteboard or calendar. Seeing when money is coming in and going out helps you plan — and reduces a lot of stress.
Track Each Project’s Profitability
It’s easy to roll right into the next project — especially when you’re excited about new work. But taking a little time to review how the last one performed financially can save you from repeating profit leaks.
This doesn’t have to be complicated — it’s about building awareness.
• Use cloud accounting tools
FreshBooks, Xero, or QBO let you track income and expenses by project. You can see at a glance if the numbers add up.
• Do a post-project review
Ask yourself: Did I hit my target profit margin? Where did costs creep in? Did my time estimate hold up? Write it down — patterns will show up.
• Tweak your process for next time
Adjust pricing, scope, or how you manage collaborators based on what you learn. Even small adjustments can make a big difference.
Pro Tip: Block out a “CEO Hour” once a month. Use that time to review project results and make small, intentional improvements. It’s one of the best ways to build a more profitable, sustainable business.
Don’t Forget Taxes and Overhead
Some projects look great on paper — until tax time arrives. Or until you realize your software, insurance, and studio costs didn’t get covered.
A little planning here goes a long way toward keeping your profits real — not just theoretical.
• Plan for taxes on every project
Set aside a percentage as income comes in — often 25%-30% depending on your tax bracket. The IRS Self-Employed Tax Center has useful guidelines.
• Include overhead in your pricing
Your gear, tools, and space cost money. If your overhead runs $1,000/month and you do 4 projects/month, each project needs to cover at least $250 of that.
• Check in quarterly
Are your project profits covering everything — including paying yourself? If not, it’s time to adjust.
Pro Tip: I highly recommend using a cloud accounting program. FreshBooks is my all-time favorite for small creative and project-based businesses. It makes this part so much easier. Xero works better for larger organizations with lots of transactions. Both are highly user friendly. But if you’re not ready for that yet, start with a simple spreadsheet to track income, expenses, and what you’re setting aside for taxes.
Final Thoughts
When you’re managing money and people on a project, it’s easy to let the numbers slide while you focus on the creative work. But a few simple habits can make a big difference — not just in your profits, but in your sense of control and confidence.
You already bring incredible value to your clients. The goal here is to make sure your business is supporting you just as well.
You’ve got this!
And if you’d like support getting your project finances set up and working smoothly, let’s talk. Book your complimentary 20-minute appointment today and see how we might work together.
