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Old 09-19-2012, 12:38 PM
crosel crosel is offline
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Join Date: Apr 2012
Posts: 13
How do you guys divide the gross income?

I have been doing this part time for a while, but now I'm willing to go at it full-time and want some advice.
I'm interested in knowing what you all do with your gross income. I am in the middle of making a business plan and want to plan future equipment purchases, how do you go about doing this? Do you go by a set % such as 60% is overhead, 25% goes back for reinvesting and the rest is saved on an emergency fund?

As far as I know overhead is rent/utilites (if applicable) current equipment cost + maintenance + your/helper's pay, and should cover the cost of original equipment so when it is time to replace you have enough money to do so, right? Money for reinvesting would be for future expansion plans, the emergency fund would be in case something breaks unexpectedly.

Is this alright or am I missing something here? I have a paid for small truck that is enough for my current and future plans (1-2 yrs) have trimmer, 21inch mower, blower, misc things for maintenance. Will need an edger and looking forward to get a 36inch mower to be more efficient and another tirmmer so I can have a spare. How should I go about calculating my overhead if all my current equipment is paid for, in good condition and has been giving me 'profits' for a while now?
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Old 09-19-2012, 01:06 PM
easy-lift guy's Avatar
easy-lift guy easy-lift guy is offline
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Join Date: Aug 2011
Location: Venice, FL. USA
Posts: 1,922
Quote:
Originally Posted by crosel View Post
I have been doing this part time for a while, but now I'm willing to go at it full-time and want some advice.
I'm interested in knowing what you all do with your gross income. I am in the middle of making a business plan and want to plan future equipment purchases, how do you go about doing this? Do you go by a set % such as 60% is overhead, 25% goes back for reinvesting and the rest is saved on an emergency fund?

As far as I know overhead is rent/utilites (if applicable) current equipment cost + maintenance + your/helper's pay, and should cover the cost of original equipment so when it is time to replace you have enough money to do so, right? Money for reinvesting would be for future expansion plans, the emergency fund would be in case something breaks unexpectedly.

Is this alright or am I missing something here? I have a paid for small truck that is enough for my current and future plans (1-2 yrs) have trimmer, 21inch mower, blower, misc things for maintenance. Will need an edger and looking forward to get a 36inch mower to be more efficient and another tirmmer so I can have a spare. How should I go about calculating my overhead if all my current equipment is paid for, in good condition and has been giving me 'profits' for a while now?
Contact your local chapter of SCORE. Set up an appointment and with their help you should be able to figure out the rest from the best.
easy-lift guy
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  #3  
Old 09-19-2012, 02:23 PM
crosel crosel is offline
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Join Date: Apr 2012
Posts: 13
I checked the website, but I live in Puerto Rico and there seem to be no SCORE help in this area. There are a few local government help centers for starting businesses, but they are a pain in the rear to deal with from a previous experience I had.
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Old 09-19-2012, 03:52 PM
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easy-lift guy easy-lift guy is offline
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Quote:
Originally Posted by crosel View Post
I checked the website, but I live in Puerto Rico and there seem to be no SCORE help in this area. There are a few local government help centers for starting businesses, but they are a pain in the rear to deal with from a previous experience I had.
If you have access to Skype find another source like in Florida. You will get as much as you put into making the effort, the rest is up to you.
easy-lift guy
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