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End of the Year money %

fulltime

LawnSite Member
Location
Cleveland Ohio
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.
 

tjsquickcuts

LawnSite Senior Member
Location
Atlanta
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.....
 

Sean Adams

LawnSite Gold Member
Location
Pennsylvania
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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