Lawn Care Business Forum Lawn Care Business Book Lawn Care Business Blog Lawn Care Software
Home Forum Contract & Flyer Templates Blog Software Videos Podcast Calculators / Estimators Store Mower Review Design It Yourself Lawn Business School

Go Back   GopherHaul Landscaping & Lawn Care Business Marketing Forum > Lawn Care, Landscaping, and Property Management Forums > General Talk

General Talk If it doesn't fit anywhere else, post it here.

What is your profit margin?


General Talk

If it doesn't fit anywhere else, post it here.
Reply
 
Thread Tools Search this Thread
  #11  
Old 12-17-2007, 11:57 PM
FourSeasons FourSeasons is offline
Members
 
Join Date: Sep 2007
Age: 32
Posts: 558
Rep Power: 8
FourSeasons
Default

Quote:
Originally Posted by [b
Quote[/b] ]15-20 % depends on the job
Tim,

Is it the same as if maybe you were a journeyman in some trade or somewhere along those lines. Income wise? Or does it pass that? If it was about the same, what do you like about owning a business in this industry that keeps you in it instead of just going to work everyday for someone else and not have to worry about the problems that go along with running a business. And maybe making the same amount of income.
__________________
Rob
Green Image Lawn & Landscape

\"If you don't feel the same way about Friday nights as you do Sunday nights, then you are not doing the right thing.\"
Reply With Quote

Stop guess-timating. Learn how to estimate and make money! $$$
Mow Time Estimator Lawn Care Price Estimator Mulch and Topsoil Calculator Snow Plow Estimate Calculator


  #12  
Old 12-18-2007, 12:08 AM
caseyshields
Guest
 
Posts: n/a
Default

Lawn care business tipsLawn Care Business Book
Quote:
Originally Posted by [b
Quote[/b] (FourSeasons @ Dec. 18 2007,12:57)]
Quote:
Originally Posted by [b
Quote[/b] ]15-20 % *depends on the job
Tim,

Is it the same as if maybe you were a journeyman in some trade or somewhere along those lines. Income wise? Or does it pass that? If it was about the same, what do you like about owning a business in this industry that keeps you in it instead of just going to work everyday for someone else and not have to worry about the problems that go along with running a business. And maybe making the same amount of income.
You are thinking of the term "profit" as YOUR paycheck. This is not correct. PROFIT is the money left over after EVERYTHING has been paid....including payroll. Payroll (including your pay as well as employee pay) is an expense.
Reply With Quote
  #13  
Old 12-18-2007, 02:07 AM
realhuntin
Guest
 
Posts: n/a
Default

Quote:
Originally Posted by [b
Quote[/b] (caseyshields @ Dec. 18 2007,1:08)]
Quote:
Originally Posted by [b
Quote[/b] (FourSeasons @ Dec. 18 2007,12:57)]
Quote:
Originally Posted by [b
Quote[/b] ]15-20 % depends on the job
Tim,

Is it the same as if maybe you were a journeyman in some trade or somewhere along those lines. Income wise? Or does it pass that? If it was about the same, what do you like about owning a business in this industry that keeps you in it instead of just going to work everyday for someone else and not have to worry about the problems that go along with running a business. And maybe making the same amount of income.
You are thinking of the term "profit" as YOUR paycheck. This is not correct. PROFIT is the money left over after EVERYTHING has been paid....including payroll. Payroll (including your pay as well as employee pay) is an expense.
This is 100% correct. Profit is what is left after you pay your self and all other expense. If you are only making enough money to cover your business expenses and what is left is your paycheck then the profit is 0%. Profit is what the company made. You must be able to seperate the two, you never touch profit for personal uses, profit is what makes the company grow, if you are comfortable with this then it's all good and works for you cool, but if you want to grow you must leave some money for the company. Remember you have to pay taxs on what you earned personaly from the business (owner draws) and what the business earned (profit).

When I stated my company makes about 15-20% profit after I checked it year-to-date it is higher. I pay myself monthly just as I was a bill, because I am a bill to the company. You must be disciplined at this, seeing all this money you have earned and wanting to spend some, you cant do it personally not saying you can buy new or newer equipment or reimbursement of owner contributions to the company. If your company has no profit and say you only have one truck and the trainy go out, cost $3k (I know from experience) now what are you to do about keeping up with your customers and getting your truck back on the raod? Profit should be a cushion, for hard times and unexpected happenings.

I know this was lengthly but I hope it brought some light to the topic, this is a GREAT ONE.

Quote:
Originally Posted by [b
Quote[/b] ]
Tim,

Is it the same as if maybe you were a journeyman in some trade or somewhere along those lines. Income wise? Or does it pass that? If it was about the same, what do you like about owning a business in this industry that keeps you in it instead of just going to work everyday for someone else and not have to worry about the problems that go along with running a business. And maybe making the same amount of income.
To answer Rob I would have to say no, not at this point in my life, I could never work full time for anyone. I have been a business owner for 20+years and I don't know if I could work for someone else.
Reply With Quote
  #14  
Old 12-18-2007, 02:10 AM
realhuntin
Guest
 
Posts: n/a
Default

Dipping into the Profit of any company is a sure way to take that company under. No if's and's or but's to it.
Reply With Quote
  #15  
Old 12-18-2007, 08:04 AM
FourSeasons FourSeasons is offline
Members
 
Join Date: Sep 2007
Age: 32
Posts: 558
Rep Power: 8
FourSeasons
Default

Quote:
Originally Posted by [b
Quote[/b] ]You are thinking of the term "profit" as YOUR paycheck. This is not correct. PROFIT is the money left over after EVERYTHING has been paid....including payroll. Payroll (including your pay as well as employee pay) is an expense.
Good Point. You're right.
__________________
Rob
Green Image Lawn & Landscape

\"If you don't feel the same way about Friday nights as you do Sunday nights, then you are not doing the right thing.\"
Reply With Quote
  #16  
Old 12-18-2007, 08:06 AM
Steve's Avatar
Steve Steve is online now
Administrator
 
Join Date: May 2003
Posts: 36,431
Rep Power: 10
Steve has disabled reputation
Default

Rob,

Reflecting on this post now, was this more of a question on how much you should be paying yourself or how much profit you should be making per job?
__________________
- Subscribe to my Lawn Care Marketing Blog Feed and get daily tips sent to you. Free!
Download your Free trial of Gopher Lawn Care Software.
Reply With Quote
  #17  
Old 12-18-2007, 08:25 AM
FourSeasons FourSeasons is offline
Members
 
Join Date: Sep 2007
Age: 32
Posts: 558
Rep Power: 8
FourSeasons
Default

Quote:
Originally Posted by [b
Quote[/b] ]Reflecting on this post now, was this more of a question on how much you should be paying yourself or how much profit you should be making per job?
Well I don't really know how much I should be paying myself. I take a withdraw or paycheck every month enough to cover the bills and other misc. expenses and leave the rest in my bus. acct. for things like if the truck breaks or whatever. Also for other business expenses. My acctountant told me since I am a sole proprietorship business I don't have to do that but I like to keep the money seperate.

I think everyone here is going to have different income levels because we are all at different stages in our business. When I think of how much I am making I have it stuck in my head as a hourly figure because before May of this year thats what I was working for. So I am always comparing my income to that. Just in my first year its been more than I was making even as it has slowed down. We'll see as Jan. and Feb. go by.

Isn't a bonus of running your own business after it matures the income you can draw off of it. If it is successful.

I'm not sure if I answered the question or not.
__________________
Rob
Green Image Lawn & Landscape

\"If you don't feel the same way about Friday nights as you do Sunday nights, then you are not doing the right thing.\"
Reply With Quote
  #18  
Old 12-18-2007, 08:19 PM
realhuntin
Guest
 
Posts: n/a
Default

Quote:
Originally Posted by [b
Quote[/b] (FourSeasons @ Dec. 18 2007,9:25)]
My acctountant told me since I am a sole proprietorship business I don't have to do that but I like to keep the money seperate.

I think everyone here is going to have different income levels because we are all at different stages in our business. When I think of how much I am making I have it stuck in my head as a hourly figure because before May of this year thats what I was working for. So I am always comparing my income to that. Just in my first year its been more than I was making even as it has slowed down. We'll see as Jan. and Feb. go by.

Isn't a bonus of running your own business after it matures the income you can draw off of it. If it is successful.

I'm not sure if I answered the question or not.[/quote]
Rob one thing I see in this statment is what your accountant told you, now please beleive, this is coming from 20+ year of being a business owner with degrees in MIS (Management Information Systems), ACCOUNTING, SMALL BUSINESS MANAGEMENT I am not saying I know more or I am better than anyone else Im just backing up my statement with experience and education. BUT, "I would find a new accountant". It dosn't matter if your a sole-proprietorship, INC or a LLC you should always keep business sepereated from personal. He/She is right you don't have to keep it seperate, but it is best you do. I know this from fact, in 1993 I was audited by the IRS for a 103k discrepancy a customer did not issue the 1099 and I clamed the income on my taxes and in the books with out the 1099 and the customer reported the 1099 so RED FLAGS where popping up everywhere and in 1997 I was audited again for red flags. In 1998 I changed to a LLC, totally seperated business from personal and I was never bothered again. These audits stated because a large jump in income (PROFIT)from one year to another and not seperating business from personal. I congradulate you on wanting to keep it seperate. This has been a good topic for me because it has hit home in how I learned a hard lesson from the school of hard knocks and the IRS. This audit thing is the whole reason for changing and keeping seperated, if it isn't, then there is room for question, if this should ever occur. So stop the questions before they are asked when it comes to business owners and the IRS.

I know this is kinda off topic but I had to try and explain in more detail about accounting and the importance of it. All of this will show you how you can get your "PROFIT MARGIN" easier by using good accounting and why you should.

Thanks for starting this post.
Tim
Reply With Quote
  #19  
Old 12-19-2007, 08:42 AM
Steve's Avatar
Steve Steve is online now
Administrator
 
Join Date: May 2003
Posts: 36,431
Rep Power: 10
Steve has disabled reputation
Default

Tim,

Do you have any suggestions as to how much a newer lawn care operator should be paying themselves?
__________________
- Subscribe to my Lawn Care Marketing Blog Feed and get daily tips sent to you. Free!
Download your Free trial of Gopher Lawn Care Software.
Reply With Quote
  #20  
Old 12-19-2007, 07:34 PM
realhuntin
Guest
 
Posts: n/a
Default

Quote:
Originally Posted by [b
Quote[/b] (Team Gopher @ Dec. 19 2007,9:42)]Tim,

Do you have any suggestions as to how much a newer lawn care operator should be paying themselves?
Well the 1st thing I would have to ask is how many customers do they have are they full or part time at the business. 2nd how much have they figuered for expenses, truck pymt, fuel, etc. total the expencses + the revenue = amount company made less purchaes (your pay).
3rd. figure your living expenses all of them on a monthly basis, add together all income (pay checks from other) subtract house hold expenses from house hold income will tell you how much you need to live on.

If the mount needed to live on is less than the business amount earned your ahead of the game. so from there the first year I wouldnt put any strain on the business or your home life, this is VERY hard to do getting started. So only take what is needed to cover homelife bills if it is less. Set money aside when your able for the RAINY DAY, and beleive you me there will be those days. You arnt alone in the feast and famine days, EVERYONE goes through them tough it out and be sure to stick to the savings schedule you make for your business and DO NOT TOUCH IT for anyother reason than what it was created for.

Example; We have 5 different business accounts, NOT counting PAYROLL, 1 for rainy days, 1 for equipment new & repairs, 1 for business expenses, 1 general fund, 1 petty cash.

Note; you can move money from the general fund to any account that might be short for monthly expenses. there may be a time that you think you have to but it can always be worked out where you don't, SO DONT TOUCH IT if it is there for a reason. This is called BUILDING a Business

Now to answer your question Steve, Don't take more than is required to cover household expenses the first year or 2 then you can revaluate your business earnings and adjust how much money you pay yourself.

Sorry I got a little windy there.
Reply With Quote
Reply

Bookmarks

Tags
operating expense, profit margin

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On
Forum Jump

» Recent Threads
  RatingTitle, Username, & Date Last Post Replies Views
Mowing the hills
EyeCatchersNow
07-08-2014 12:22 PM
Today 05:57 PM
by Steve
21 1,834
Real Estate??
tbtigers03
Yesterday 06:43 PM
Today 05:01 PM
by stevef1201
5 173
John Deere z235 Deck
WesleySnips
09-29-2014 06:02 PM
Today 04:38 PM
by WesleySnips
5 230
Sprinkler head guards...
Sprinkler Buddy
09-27-2014 04:55 AM
Today 02:50 PM
by Sprinkler Buddy
6 434
Look out Bob Villa -...
Mr Dave
Yesterday 10:06 AM
Today 02:19 PM
by Steve
5 199
Question?what should I...
dalvan0
09-24-2014 11:10 PM
Today 01:39 PM
by Steve
17 820
Whe does Mowing season...
jack2048
Yesterday 07:05 AM
Today 01:38 PM
by jack2048
4 197
Kohler command carb...
ExtremeLawncareServices
09-21-2014 03:09 PM
Today 01:30 PM
by Steve
26 1,162
Help a brother...
tbtigers03
09-28-2014 11:41 AM
Today 01:26 PM
by Steve
7 386
Hello from Kentucky
TRV
Yesterday 05:42 PM
Today 01:20 PM
by Steve
2 119
Give Me Your Problems
ellakit
Yesterday 04:10 PM
Yesterday 04:10 PM
by ellakit
0 17
Say Hello !!!
Steve
03-19-2007 11:18 AM
Yesterday 03:53 PM
by ellakit
1,188 336,278
Falling into business
stellarmowing
09-28-2014 04:35 PM
Yesterday 02:17 PM
by Steve
4 346
hey
sizemorelawncare
09-28-2014 08:12 PM
09-29-2014 03:10 PM
by Steve
2 276
Update on LawnsAway and...
Ian Lovejoy
09-28-2014 10:24 AM
09-29-2014 03:09 PM
by Steve
2 329
Need to figure out how...
tjslawnde
09-28-2014 10:31 AM
09-29-2014 03:05 PM
by Steve
4 340
Aerocore Deck?
wdrdoctor
09-26-2014 06:21 PM
09-29-2014 02:36 PM
by Steve
3 467
Hello from CNY
arazucontracting
09-22-2014 06:07 PM
09-29-2014 02:33 PM
by Steve
3 720
How to price lawn mowing.
jack2048
09-24-2014 04:18 PM
09-29-2014 02:27 PM
by Steve
4 581
Pricing ????
6295danny
01-14-2013 07:54 PM
09-29-2014 02:22 PM
by Steve
35 6,591
30 Inch Push Mowers Pros...
Billy Goat
06-27-2013 08:07 PM
09-27-2014 04:11 PM
by SGL1
30 7,123
Replacing a Shindi T-27
Dan Tanner
09-13-2014 12:59 PM
09-26-2014 04:16 PM
by stevef1201
5 1,105
Looking for feed back on...
ExtremeLawncareServices
09-17-2014 08:38 AM
09-25-2014 09:18 AM
by ExtremeLawncareServices
10 1,132
These are the days on...
ExtremeLawncareServices
03-22-2014 09:12 AM
09-25-2014 08:01 AM
by ExtremeLawncareServices
124 9,329
Trying something new,...
ExtremeLawncareServices
09-21-2014 09:07 PM
09-23-2014 11:13 AM
by Steve
4 814
This sucks...
Matther777
09-18-2014 04:56 PM
09-22-2014 08:02 PM
by ExtremeLawncareServices
11 1,190
Not sure, but anyone do...
SnowRemoval2k14
09-22-2014 12:10 AM
09-22-2014 04:49 PM
by Steve
1 761
Tribulations of working...
stevef1201
09-13-2014 08:37 AM
09-22-2014 04:45 PM
by Steve
9 1,090
Mulching beds
Bradcook21
09-21-2014 07:43 AM
09-22-2014 04:43 PM
by Steve
3 828
Scag turf tiger hydrolic...
ExtremeLawncareServices
09-04-2014 10:55 PM
09-22-2014 04:35 PM
by Steve
12 1,458
2014 Gie-expo
ExtremeLawncareServices
08-19-2014 11:22 PM
09-21-2014 09:23 PM
by ExtremeLawncareServices
3 1,488
Mowing 7 acres
avetslawncare
08-31-2014 04:24 PM
09-19-2014 03:29 PM
by acrajchel
6 1,710
snowplowing
jshak40
09-01-2014 07:20 AM
09-19-2014 11:49 AM
by Steve
23 2,140
Lowballers scrubs &...
Darksteel
01-13-2014 07:35 AM
09-18-2014 06:32 PM
by Northwoods Outdoors
58 7,532
Hello from upstate NY!
A&MLawn&Snow
09-18-2014 11:19 AM
09-18-2014 04:10 PM
by Sprinkler Buddy
2 925
Price to apply fertilizer
SS.Lawncare
09-15-2014 11:10 AM
09-18-2014 01:16 PM
by Steve
9 1,110
Trailer tires
J.A.S.LawnService
09-01-2014 10:17 AM
09-17-2014 09:57 PM
by curts lawn care
4 1,540
new to the forum
SGlawncare
09-16-2014 11:20 PM
09-17-2014 08:29 PM
by curts lawn care
3 937
Help With Snow Blowing...
Robertf31
09-13-2014 10:55 PM
09-17-2014 12:34 PM
by Steve
11 1,304
Non-Stop Summer?
SouthallMowing
09-14-2014 10:51 PM
09-17-2014 10:48 AM
by stevef1201
6 1,058
Poll - net income
Dan5082
11-15-2010 08:08 PM
09-16-2014 04:44 PM
by jrs.landscaping
12 3,808
Getting lowballed!
PineHillLawn
06-27-2012 07:23 AM
09-16-2014 01:25 PM
by jrs.landscaping
24 5,549
Compare this summer to...
Steve
09-03-2014 12:52 PM
09-16-2014 11:20 AM
by Hanks Lawn Care Services
15 1,731
thinking about throwing...
veteranslawncaresystems
09-09-2014 10:31 PM
09-15-2014 03:41 PM
by Steve
12 1,456
Hello
Robertf31
09-12-2014 10:34 PM
09-15-2014 03:17 PM
by Steve
2 949
Newbie......Again
Jibber
09-13-2014 12:17 PM
09-15-2014 02:54 PM
by Sprinkler Buddy
2 1,078
need help with starter...
GoGreenerKS
09-12-2014 04:23 PM
09-15-2014 02:25 PM
by Steve
3 1,000
Brake job!
kslawn
08-30-2014 07:49 AM
09-15-2014 02:16 PM
by Steve
12 1,813
Hello
jawnebgoode
08-28-2014 08:37 PM
09-15-2014 02:15 PM
by Steve
3 1,539
Employee uniforms
Gerardo_Landscape
01-21-2014 11:11 PM
09-15-2014 02:12 PM
by Steve
5 1,600
» Popular Tags
2wd 4x4 aerocore apartment complex article marketing auger bid billy goat brushcutter blades care charge christmas collections collections subcontractor equipment rental exmark ferris foreman four wheel drive gopherhaul grass gravely growing a lawn care business health hills honda how much to charge husqvarna installation john deere quik trac landscape services lawn lawn care lawn care business lawn care business book lawn care business seo lawn care business show lawn care business website lawn care business website seo lawn care website lesco marketing mechanic monthly mr dave mulch mulch price new buisness new business new mower podcast pto running a business scag schedule scripts search engine optimization seo small engine repair starting a business starting a lawn care business steve stihl theft toro toro grand stand trailer trimmer rack walk behind walker
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 07:26 PM.


(C) 2011 Riggs Publications - Terms of use & Privacy Policy

All times are GMT -5. The time now is 07:26 PM.

(C) 2011 Riggs Publications - Terms of use & Privacy Policy