When do start to put money away!

Discussion in 'Lawn Mowing' started by Mack, Jan 19, 2005.

  1. Mack

    Mack LawnSite Member
    Posts: 80

    Well I just got done paying my sales tax. The wife and I where just talking about when do most of you guys start to see a profit. It seems that everything I make goes right back into the business. I was wounding when do you get to start the nest egg. I was wounding if my prices are to low, or spending to much time traveling around mowing or what I might be doing wrong so I can build my bank account up and not worry about sales tax or visa bill. Then I want to expand but now there is more mowers and insurance you have to have. I would like to know how some of you figure out your expenses and then divide it by the hour.
     
  2. Mo Green

    Mo Green LawnSite Bronze Member
    Posts: 1,487

    A good CPA may be able to help you with some of these things.
     
  3. Randy Scott

    Randy Scott LawnSite Bronze Member
    Posts: 1,915

    Put yourself on the payroll, then you'll see money.
     
  4. Just don't do it the Richard Hatch way.
     
  5. K.Carothers

    K.Carothers LawnSite Bronze Member
    Posts: 1,124

    Yesterday!!!!!
     
  6. ProLawns

    ProLawns LawnSite Senior Member
    Posts: 476

    I've been in business thirteen years and my personal income has been roughly 60% of my gross receipts each year. i.e. it costs $40,000 to make $60,000
     
  7. scaglawnsnj

    scaglawnsnj LawnSite Senior Member
    from nj
    Posts: 435

    True you know the old saying IT TAKES MONEY TO MAKE IT :dizzy:
     
  8. K.Carothers

    K.Carothers LawnSite Bronze Member
    Posts: 1,124

    Are you saying that 20,000 is your income?
     
  9. ProLawns

    ProLawns LawnSite Senior Member
    Posts: 476

    No. Income is roughly 60% of gross receipts. If the business takes in $100,000, personal income is $60,000. This has been my experience with one helper six months of the year. Numbers might be different with more labor, investing more in new equipment, etc.
     

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