Turnover...

[gensetsteve]

I was told by a business panel 20 years ago, dont know if it holds true today especially in the last 3 years work out your costs double it and add vat. So if your turn over was 100k 20 k was vat so 40k should go in your pocket less tax. There is a huge amount of variables like do you like toys more than cash. Do you struggle in an old shed or do you rent a nice unit ? are you expanding your op or reducing down. when you take on people often you dont earn a lot more until you get to 5 people I think its called growing pains.

[gensetsteve]

I was told by a business panel 20 years ago, dont know if it holds true today especially in the last 3 years work out your costs double it and add vat. So if your turn over was 100k 20 k was vat so 40k should go in your pocket less tax. There is a huge amount of variables like do you like toys more than cash. Do you struggle in an old shed or do you rent a nice unit ? are you expanding your op or reducing down. when you take on people often you dont earn a lot more until you get to 5 people I think its called growing pains.

[butler]

Two years ago I would have agreed

location dependant

[butler]

Two years ago I would have agreed

location dependant

[Le Sanglier]

Two years ago I would have agreed

 

Yes but it's Jersey, all those tax shall we say "ignoring" sorts.....................Loadasmoney!!!

[Le Sanglier]

Two years ago I would have agreed

 

Yes but it's Jersey, all those tax shall we say "ignoring" sorts.....................Loadasmoney!!!

[Paul Jenks]

The costs of most 2 man crews should be similar, so turnover should be a reasonable indicator of profit.

 

Not true.

There are so many variables. Comparing like for like is ok, though even then leverage, wages, rent etc can skew costs.

A weak climber and weak groundie would be cheap, and if they had top end gear they'd be expensive to run. Using sub-contractors with some of their own kit is a cheaper model as their are no training costs, holidays, NI etc.

 

Too many variables.

 

Look at your costs, add profit, new kit and screw-ups divide it into the number of days a year you wish to work. This may give you a fair indicator. Don't forget to factor time spent quoting, marketing, holidays, training and admin.

 

FYI we look for £100k+

[Paul Jenks]

The costs of most 2 man crews should be similar, so turnover should be a reasonable indicator of profit.

 

Not true.

There are so many variables. Comparing like for like is ok, though even then leverage, wages, rent etc can skew costs.

A weak climber and weak groundie would be cheap, and if they had top end gear they'd be expensive to run. Using sub-contractors with some of their own kit is a cheaper model as their are no training costs, holidays, NI etc.

 

Too many variables.

 

Look at your costs, add profit, new kit and screw-ups divide it into the number of days a year you wish to work. This may give you a fair indicator. Don't forget to factor time spent quoting, marketing, holidays, training and admin.

 

FYI we look for £100k+

[Hill-Billy]

I heard that reinvesting as much profit as possible is the best way to keep it out of the Taxman's hands. So, big turnover but makes your business appear as though it is running at a loss! Does that sound right. I'm a Sole-Trader who's only recently started trading and would be interested to hear from anyone if this is how they run their company.

[Hill-Billy]

I heard that reinvesting as much profit as possible is the best way to keep it out of the Taxman's hands. So, big turnover but makes your business appear as though it is running at a loss! Does that sound right. I'm a Sole-Trader who's only recently started trading and would be interested to hear from anyone if this is how they run their company.