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End of the Year money %

Discussion in 'Starting a Lawn Care Business' started by fulltime, May 10, 2007.

  1. fulltime

    fulltime LawnSite Member
    Posts: 8

    Just wondering...what % of your total revenue do you put back into your company? For example, you do $75,000 a year in business...what % of that do you put back into the business for fuel, repairs etc.

    Very curious to see the answers on this.
  2. tjsquickcuts

    tjsquickcuts LawnSite Senior Member
    from Atlanta
    Posts: 943

    It really depends on how you have your business set up. For the sake of arguement, say your business grossed $75000. If you are a solo op, say you pay yourself $1000 a week. Using my calendar, that about 44 weeks that would pay you $44,000 a year. Minus your $44k from your $75K and you now have $31k. You figure are a solo op, you might have expenses to hit around the $15k to $20k range. That should leave you with a rough net of about $11k to $15k. With that, upgrade your business, and add on some help for the following year. But you should put at least 40% back into you business with a goal to net at least 10% to 15% yearly. But thats just me, I am sure others have different formulas.....
  3. Sean Adams

    Sean Adams LawnSite Gold Member
    Posts: 3,597

    There are a lot of different schools of thought on this.... it depends on what you want to pay yourself and how quickly and/or how big you want to grow your business.

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