Profits

[BDog]

Hey all. Great site.
I'm a new solo operator and I was just trying to figure about how much I keep of every dollar that comes into the business. i have insurance and everything else that makes me legal. I'm coming up with a figure of about 49%. Any input here would be greatly appreciated.

[RyanD]

This totally depends on your situation. Everyone that responds to this thread will give you a different number. Are you just wanting to know what to expect?

[Jay Ray]

You are doing better than me.

[Reliable Lawns]

Hey all. Great site.
I'm a new solo operator and I was just trying to figure about how much I keep of every dollar that comes into the business. i have insurance and everything else that makes me legal. I'm coming up with a figure of about 49%. Any input here would be greatly appreciated.

49 % seems pretty high to me. I haven't paid myself anything yet, as I keep putting the money back into the company, but I am only part time. I would think that if you can pull 22% to 30% you are doing pretty good, but it is all relative to your gross sales versus your cost of goods sold and expenses.
Best of Luck,

[bohiaa]

cutting overhead is a MUST for me......

My goal is to have every house on a block,

But I think that's kind of unrealstic....

I just wont drive across town to do 1 job, If I get a customer in a "new" area for me I will do it "if it's good" But If I dont pick up any more in that area I give it away........

[Wells]

BDog,
Thats going to be tough to answer as it depends on operating costs and everyones operating costs are going to vary significantly.

I would say you are doing very,very well if your earning 49% after operating costs. I've worked for some engineering firms in the past that were happy to be earning 7% after expenses. I can only wish that I could get mine up that high, i'm guess mine to be somewhere between 22% to 27%.

Since your from Utah you may be familiar with "Jims Lawn care" in Sandy. He has old trucks, old trailers, old equipment and does little if any advertising. Any way I would guess that he has numbers up around yours in the 45+ range. I have to hand it to you guys that can keep your expenses down so low.

[cwlawley]

I shoot for 40%...I actually bring in close to 25%.

[topsites]

The rule of business calls for around 20 - 30%, that being the average, some pull as little as 15, others as much as 35.

I found from my own experience it is best to let these figures kind of happen, of course it is always good to have goals... In my case I like to shoot a little high then I come in a little below that, and I'm ok with it, where other folks like to be realistic, whatever floats your boat.

I'd say 50% is a bit high myself, but hey, just let it happen and see what happens :rolleyes: