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How much should I be putting back into my business?

Discussion in 'Starting a Lawn Care Business' started by Steve's Mow & Trim, Feb 4, 2007.

  1. Steve's Mow & Trim

    Steve's Mow & Trim LawnSite Member
    Posts: 132

    Alright I am curious to see how everyone is running their operations. As far as percentages go, how much do you give to yourself and put back into your business for all your expenses(gas, repairs, new equipment, etc). In the past 2 years I havent been very organized with this, but I am expanding this year and am looking to see what percentage I should be investing back into my business. Thanks
  2. firefightergw

    firefightergw LawnSite Gold Member
    from Texas
    Posts: 3,340

    Take as little out for yourself and put everything you can back into the business. As far as a percentage, I don't think you will get a very good answer. A company grossing $1M vs. one grossing $10K is quite different. Put 100% back into the business if you can.
  3. carcrz

    carcrz LawnSite Silver Member
    Posts: 2,085

    I only take what I need to survive.
  4. fiveoboy01

    fiveoboy01 LawnSite Silver Member
    Posts: 2,988

    Same for me which right now is nothing. I can support myself fully with my full-time job, so every penny goes into the business account and stays there, and is used for gas, repairs, new equipment, etc...
  5. Steve's Mow & Trim

    Steve's Mow & Trim LawnSite Member
    Posts: 132

    Come on guys Im 18 and saving for college! If I put 100% back into my business I'd be broke as a joke! I was thinking alot the lines of 70% to myself and 30% back to the business. Im only servicing between 30-40 accounts. There is no way im putting 30g's to my business and nothing towards college, lol
  6. Steve's Mow & Trim

    Steve's Mow & Trim LawnSite Member
    Posts: 132

    Isn't there some saying for all businesses. Like spend this %, save this %, and invest this %...I know there is I heard it in one of my business classes before.
  7. carcrz

    carcrz LawnSite Silver Member
    Posts: 2,085

    There really isn't a formula for this because there are so many variables to figure w/ different people. Really, you should be figuring out how much you need to make to be able to pay for college & related living expenses. Then, also figure out how much your overhead is to keep your business a float. That will determine you % that you want.

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