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Old 09-14-2011, 10:33 PM
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supercuts supercuts is offline
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Join Date: Jan 2007
Location: CT shoreline
Posts: 2,771
Quote:
Originally Posted by greenstatelc View Post
Where does 25% come from? We have income tax and sales tax and a number of overhead costs but the net profit far exceeds 25% with the limited drive time of this business ( it costs us $125 a week in gas and we are billing out $2700) It is more like 50-60% profit. I would even mow with the new owner for a month to get them off to the right track with the new owners.
figure right off the top 33% goes to income tax....at least here in CT so your 60% is already nearly out the window. repairs, supplies, equipment replacement, insurance, etc. you don't mention employees either. payroll, Workman's comp..... do you really know your true operating cost? I know about where mine are but even I dont know 100%. the 25% figure he gave is a ballpark figure that most businesses try to achieve. mine is lower. most are. health insurance companies are only around 4% but still generate ridiculous amounts of money. its worth what you can get for it. contact your accountant if you pay taxes and have one, see what he thinks or if he can point you in the right direction
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