Everybody needs to put all expenses into a spreadsheet, essentially creating a Schedule C. You can even you last years Schedule C, and make projects based on percentages you expect to grow for this season.
We put everything into a spreadsheet. Each piece of equipment is itemized by category and cost, then expensed out for the season. I divide total yearly costs for each piece of equipment by 1400hrs (average billable hours in our mowing season for 1 person). Add in costs for advertising, fuel, payroll, insurance, etc. Get a total per hour cost, then divide by total of employees. We add in for 10% unbudgeted expenses, and 20% profit. This is a short example of a very long spreadsheet, but I need to bring in $53.91460046 per laborer, per hour in billable work to clear a 20% profit. Accounting for the non-billable time puts that rate, up closer to $55-57 per hour.
If you don't know your business costs, you might as well pack up and close your doors now. It's only a matter of time, before a well organized and highly efficient company assists you with your own demise.
Steve M. Krieger
Quality Lawn & Landscape, Inc.
Serving Western New York since 1998.
"Everyone has bad breaks but everyone also has opportunities. I think luck is the sense to recognize an opportunity and the ability to take advantage of it..." -Samuel Goldwyn