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profit percent?

Discussion in 'Business Operations' started by abclawncare, Jun 22, 2008.

  1. abclawncare

    abclawncare LawnSite Member
    Messages: 56

    was wondering what a good profit for the year is? 40% or 50% i went full time into my business last year, I've been working it part time up until then and didn`t give much thought to profit margin when i was part time, but now that i`m working it full time i`m trying to cut cost and make a decent profit and was just wondering what everyone else is making if you care to share
     
  2. Flow Control

    Flow Control LawnSite Bronze Member
    Messages: 1,267

  3. MowHouston

    MowHouston LawnSite Bronze Member
    Messages: 1,012

    Ummm... I think its actually more close to 30%. Not sure what you are doing to make 10% profit but you might want to think about a different industry if that is your profit margin.
     
  4. Josh.S

    Josh.S LawnSite Bronze Member
    Messages: 1,085

    Do you consider profit after or before you pay yourself?

    When calculating profit do you consider; time, depreciation, accounting fees, taxes, insurance, ect.

    Some people say "profit" = gross - (labor + repairs + fuel)


    Just wanting to be clear.
     
  5. abclawncare

    abclawncare LawnSite Member
    Messages: 56

    i consider profit to be net income, after overhead is taken out(fuel,wages,insurance,........)
     
  6. Flow Control

    Flow Control LawnSite Bronze Member
    Messages: 1,267

    Last year I did X amount in business and after EVERYTHING was paid for including 40k in new equipment and my salary I still should of had close to 280k in the bank left over. Sorry didn't happen. Maybe I am doing something wrong.
     
  7. Flow Control

    Flow Control LawnSite Bronze Member
    Messages: 1,267

    That is what I consider profit to be as well. Sales - ALL monies spent to run the biz and everything associated with it= net profit
     

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