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: 36,384
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: 36,384
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
snowplowing
jshak40
09-01-2014 07:20 AM
Today 06:24 PM
by Northwoods Outdoors
22 1,214
Looking for feed back on...
ExtremeLawncareServices
Yesterday 08:38 AM
Today 06:06 PM
by jrs.landscaping
6 134
This sucks...
Matther777
Today 04:56 PM
Today 04:56 PM
by Matther777
0 9
Hello from upstate NY!
A&MLawn&Snow
Today 11:19 AM
Today 04:10 PM
by Sprinkler Buddy
2 51
Price to apply fertilizer
SS.Lawncare
09-15-2014 11:10 AM
Today 01:16 PM
by Steve
9 300
Trailer tires
J.A.S.LawnService
09-01-2014 10:17 AM
Yesterday 09:57 PM
by curts lawn care
4 835
Lowballers scrubs &...
Darksteel
01-13-2014 07:35 AM
Yesterday 08:42 PM
by curts lawn care
57 6,610
new to the forum
SGlawncare
09-16-2014 11:20 PM
Yesterday 08:29 PM
by curts lawn care
3 143
Help With Snow Blowing...
Robertf31
09-13-2014 10:55 PM
Yesterday 12:34 PM
by Steve
11 486
Non-Stop Summer?
SouthallMowing
09-14-2014 10:51 PM
Yesterday 10:48 AM
by stevef1201
6 293
Tribulations of working...
stevef1201
09-13-2014 08:37 AM
09-16-2014 10:43 PM
by SGL1
6 359
Poll - net income
Dan5082
11-15-2010 08:08 PM
09-16-2014 04:44 PM
by jrs.landscaping
12 3,129
Getting lowballed!
PineHillLawn
06-27-2012 07:23 AM
09-16-2014 01:25 PM
by jrs.landscaping
24 4,787
Compare this summer to...
Steve
09-03-2014 12:52 PM
09-16-2014 11:20 AM
by Hanks Lawn Care Services
15 1,016
thinking about throwing...
veteranslawncaresystems
09-09-2014 10:31 PM
09-15-2014 03:41 PM
by Steve
12 710
Hello
Robertf31
09-12-2014 10:34 PM
09-15-2014 03:17 PM
by Steve
2 317
Newbie......Again
Jibber
09-13-2014 12:17 PM
09-15-2014 02:54 PM
by Sprinkler Buddy
2 327
Replacing a Shindi T-27
Dan Tanner
09-13-2014 12:59 PM
09-15-2014 02:31 PM
by Steve
1 290
need help with starter...
GoGreenerKS
09-12-2014 04:23 PM
09-15-2014 02:25 PM
by Steve
3 334
Brake job!
kslawn
08-30-2014 07:49 AM
09-15-2014 02:16 PM
by Steve
12 1,029
Hello
jawnebgoode
08-28-2014 08:37 PM
09-15-2014 02:15 PM
by Steve
3 806
Employee uniforms
Gerardo_Landscape
01-21-2014 11:11 PM
09-15-2014 02:12 PM
by Steve
5 933
Greetings from the north
Northwoods Outdoors
09-13-2014 08:55 AM
09-15-2014 02:07 PM
by Steve
1 306
darleneh
darleneh
09-15-2014 12:33 PM
09-15-2014 02:07 PM
by Sprinkler Buddy
1 168
My 1st bid
WesleySnips
06-11-2014 03:13 PM
09-15-2014 02:05 PM
by Steve
29 1,721
New Aerator
Chaz
09-09-2014 11:43 PM
09-15-2014 01:50 PM
by Steve
9 543
Yearly contract Pricing
jrob0691
08-21-2014 08:57 AM
09-15-2014 01:23 PM
by stevef1201
8 1,194
Scag turf tiger hydrolic...
ExtremeLawncareServices
09-04-2014 10:55 PM
09-14-2014 03:06 PM
by ExtremeLawncareServices
8 716
These are the days on...
ExtremeLawncareServices
03-22-2014 09:12 AM
09-13-2014 09:14 PM
by ExtremeLawncareServices
116 7,948
getting ready to start
calebmoss
05-23-2011 09:35 PM
09-11-2014 12:21 PM
by Steve
34 11,211
Stihl pull cord replace
SGL1
09-03-2014 09:22 PM
09-10-2014 12:25 PM
by Steve
9 732
Softball field
kslawn
08-15-2014 09:28 AM
09-10-2014 12:16 PM
by Steve
18 1,459
Lawn Route Templates
Landscaper1165
08-30-2014 01:52 PM
09-09-2014 08:05 PM
by Landscaper1165
4 947
New truck and trailer...
Johnny Rocket
05-14-2012 03:41 PM
09-09-2014 07:23 PM
by Matther777
18 6,545
What gets you bad press?
Steve
09-09-2014 11:48 AM
09-09-2014 07:21 PM
by Matther777
2 433
Signs on your snow plow?
Steve
01-15-2007 01:07 AM
09-09-2014 11:42 AM
by Steve
19 6,181
Exmark Lazer Z S-Series...
BLC7
08-22-2014 10:18 AM
09-08-2014 08:08 PM
by avetslawncare
12 1,236
New to the business
flamingyouth87
09-05-2014 11:52 AM
09-08-2014 11:55 AM
by Steve
3 641
Hello from Ohio
kurtwin
08-28-2014 05:06 PM
09-08-2014 11:51 AM
by Steve
7 922
Facebook
element009
03-23-2011 08:36 AM
09-07-2014 07:35 AM
by avetslawncare
24 7,710
Help pricing cut down 7...
Bradcook21
08-26-2014 11:17 PM
09-06-2014 02:09 PM
by Bradcook21
8 1,007
billing matters
sbuchanan8154
09-05-2014 09:56 AM
09-05-2014 03:00 PM
by Steve
3 615
Thoughts
googus
09-05-2014 07:28 AM
09-05-2014 02:23 PM
by Steve
2 567
Backflow Tester
flowcheckllc.2014
09-03-2014 04:37 PM
09-05-2014 02:15 PM
by Steve
3 654
Collections & collection...
jscarolina
09-03-2014 04:39 PM
09-04-2014 03:14 PM
by Steve
2 670
Sod
RosalesLawnCare
08-27-2014 03:47 PM
09-04-2014 02:42 PM
by RosalesLawnCare
4 930
Lawn needs top soil What...
jymie
08-26-2014 11:01 AM
09-03-2014 12:07 PM
by Steve
7 994
Hello! New here and...
CaliforniaFriendly
08-29-2014 11:30 AM
09-03-2014 11:15 AM
by Steve
4 898
Mowing 7 acres
avetslawncare
08-31-2014 04:24 PM
09-02-2014 03:11 PM
by Steve
5 894
New to the industry-...
Lsmain
08-31-2014 10:53 AM
09-02-2014 02:58 PM
by Steve
1 814
» Popular Tags
2wd 4x4 apartment lawn care estimate article marketing bid care charge collections subcontractor commercial credit card ecosymbiosis employee problems exmark fall ferris financing four wheel drive franchise gopherhaul grass gravely hardscapes health honda how much to charge hydraulic installation landscape services lawn lawn care busines plan lawn care business lawn care business seo lawn care business show lawn care business website lawn care business website seo lawn care website leaf managing a lawn care business marketing mechanic monthly mow mulch mulch price native plants new buisness new business outdoor environments patio install podcast push versus ride scag scag v-ride schedule search engine optimization seo snow plowing starting a business steep lawns stihl sulky theft of services toro tractor auger trailer mate pro truck new used landscape walk behind walker won't return wright stander rh
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 06:31 PM.


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

All times are GMT -5. The time now is 06:31 PM.

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