How much $ goes back into the Business

Discussion in 'Business Operations' started by outrunjason, Feb 14, 2003.

  1. outrunjason

    outrunjason LawnSite Senior Member
    from dallas
    Posts: 703

    I saw a post on this somewhere but just can't find it. How much money do you keep for the business percentage wise. How much do you keep for yourself.

    Jason
     
  2. rodfather

    rodfather LawnSite Fanatic
    Posts: 9,501

    I think we do like 10 - 15% of the annual gross per year for new equipment purchase.
     
  3. walker-talker

    walker-talker LawnSite Platinum Member
    from Midwest
    Posts: 4,771

    I have done this part-time for the last 3 years and I put 100%, plus part of my earning from my full-time job back into the business. When I go full-time I will have most I need at the time and will help greatly.

    MATT
     
  4. paponte

    paponte LawnSite Silver Member
    Posts: 2,366

    "How much money do you keep for the business percentage wise."

    It keeps all of it!! Minus weekly payroll, and expenses. We are incorporated. It doesn't really matter what I make individual. I am the president of the company. If I told you I made $500. a week would you laugh at me? Bet you would, but I own a company that brings in thousands a week. I like to base everything on the business itself. It gives me buying power, capitol etc. under the corporation name. :D
     
  5. coonman

    coonman LawnSite Senior Member
    Posts: 682

    We are also a corp. Just two of us, pay ourselves 400 a week and the rest stays in the corp. Yes, I can live on 400 a week!
     
  6. brentsawyer

    brentsawyer LawnSite Senior Member
    Posts: 663

    It all depends on how you want to grow and expand your company. Seeing that most companies that are small are always trying to expand, usually the owner will take out as little as possible and this is necessary to meet future goals. If the owner takes out a large salary, obviously less money will be left for new purchases which are a must in this busines in order to operate at a competitive and profitable level. Now this can change year to year or as the owners desires change obviously. Currently, I am in the expanding phase and will remain there for at least the next two years when I can finally foresee a comfortable living with a good customer base. What that will be is unknown since I haven't gotten there yet, but at least I know I will hopefully be able to afford nicer things in life and worry a little less. After that point is attained, my company will need to retain an amount not less than replacement cost of equipment. Of course that will be based upon dollar value of equipment, probably 20-25% of purchase price, this will equipment on a revolving replacement schedule.
     

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