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Business percentages


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Old 03-02-2011, 10:52 AM
devuono311 devuono311 is offline
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Default Business percentages

In everyones opinion, whats a good breakdown of percentages for your business income?

What I'm asking here is this: If you take your income at 100% and break it down into categories what goes to what?

Like starting with 100%
15% into an account back to your business
25% aside for overhead
10% employee/ helper/ whatever you prefer to title them as
20% taxes
30% Self pay?

I'm hoping to get an idea of the breakdown I should plan for my upcoming season.

Thanks to all who read and place input.
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Old 03-02-2011, 06:05 PM
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That's a really tough question to answer because each companies overhead, helper fees, etc. will be different. Given the right circumstances, the formula you posted would work. Experiment with it and make adjustments as you see need.

DISCLAIMER: I am no accountant nor did I stay at a Holiday Inn Express last night.
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Old 03-02-2011, 07:15 PM
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That is a good question. Was your business operating last year? Are you able to look back and pull out those percentages based on actual costs?

I agree it is tough to compare this, because you can have expenses that are conservative or outrageous when compared to a competitor. It all comes down to how tight of an operation you run. Do you prefer to save or do you prefer to take any money you make and invest it all back into your business?
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Old 03-03-2011, 02:59 PM
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I prefer to save what I can, for future placement back into the business. However, I am still new at this. I operated last year but kept it low key.
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Old 03-04-2011, 01:36 AM
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If you focus on keeping your overhead as low as possible, you will have a competitive advantage over others in your area.

Were you able to look at your last years income and expenses and break it down into the different %?
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