Moral Earnings

[Stephen Blair]

are we now talking about turn over?because if a 3 man crew couldnt tickle 50k turn over then they arent going to make any money at all by the time they pay their bills before wages.

[nailer]

Profit, after all costs have been paid and after vat has been paid, but before corporation and / or personal taxes.

[Stephen Blair]

i know what profit is, the figures just made me think turnover was being discussed. It depends how the busines is being run, if huge profits are the main goal of the business, big profits mean big tax bills. i would rather invest along the way and keep profits to a minimum. i used to concentrate on making as high a profit as possible when i was looking to borrow money but now i dont, i keep things to a minimium.

[gibbon]

Hyperthetical sum.

 

3man team billing £200 per man per day 4 days a week. 2 man team 1 day a week while owner is pricing = £2800 per week plus vat.

 

Do this 48 weeks of the year = £134,000 plus vat.

 

£19K for climber, £14k trainee climber leaves £100k in the pot for company expenses. MD couls easily take £50k home.

 

Charge more or employ more then you could earn even more.

 

Only catch is you need the work

[nailer]

Stevie, I wasn`t suggesting you didn`t know what profits were, I just wanted to be clear.

 

Keeping profits to a minimum to pay less tax is one way to run a business but I get the impression from other posters that profit was important. This is not referring to you in any way, but for some people its a lifestyle thing. Therefore, profits are not top priority.

[Stephen Blair]

sorry nailer i knew i should of put a smile in there but i was busy with the kids so every second counts loli wasnt getting a dig either

 

not far wrong there, hypothetically speaking if this was to be the numbers, and the wages were to be what you say, mr boss man will need to start about 7 finish about 11pm, 7 days a week 52 weeks a year, so he will walk away with a salary of £8.58 an hour, have a really so back, no life and irritable bowel syndrome lol, have a melt down, chuck it all, sell his kit find a tree surgeons forum, become obsessed with it and re structure his life and business by using information from other guys in similar situations of different ages and sectors of the industry , tweek his set up, capture his own niche in his little market and make more for less and have a laugh along the way, thanks guys:001_rolleyes:

[Tom D]

Hyperthetical sum.

 

3man team billing £200 per man per day 4 days a week. 2 man team 1 day a week while owner is pricing = £2800 per week plus vat.

 

Do this 48 weeks of the year = £134,000 plus vat.

 

£19K for climber, £14k trainee climber leaves £100k in the pot for company expenses. MD couls easily take £50k home.

 

Charge more or employ more then you could earn even more.

 

Only catch is you need the work

 

You'd think it was easy but there are so many hidden costs, what you describe there is not that far from my business, (turnover around 100k). I'll be lucky to see 30k more like 20 - 25.

 

For example say the MD pays himseld minimum wage (to take ther rest in drawings) thats just under 12k, add that to the other wages makes 45k so there goes £5400 in employers NI contributions...there are so many other things too.

[nailer]

Stevie, I admire your decision to make big changes in the way you work your business and it is clear you`re having a blast. I was cornered into making drastic changes myself about this time last year and it has worked out better than I thought possible. My point is, if anyone`s business isn`t working out like they imagined, don`t just trudge along, make the changes you know you need to make.

[Stephen Blair]

it is clear you`re having a blast. I was cornered into making drastic changes myself about this time last year and it has worked out better than I thought possible. My point is, if anyone`s business isn`t working out like they imagined, don`t just trudge along, make the changes you know you need to make.

 

[gibbon]

You'd think it was easy but there are so many hidden costs, what you describe there is not that far from my business, (turnover around 100k). I'll be lucky to see 30k more like 20 - 25.

 

For example say the MD pays himseld minimum wage (to take ther rest in drawings) thats just under 12k, add that to the other wages makes 45k so there goes £5400 in employers NI contributions...there are so many other things too.

 

There is more to it than that of course, but either your taking a lot of cash or you need to charge more. This recession has been an eye opener for me and as a result I charge about 30% more than I did last year.

 

I used to seek comfort in that I nearly always had 2 months work ahead of me, this dropped to about a week this summer. If your still working your still earning the same no matter how much work you have. Now I charge alot more, employ more and have less work on the books, but turn over more too. Its a gamble but who cares, you gotta be in it too win it.