Turnover...

[Stephen Blair]

You re invest if it means you will make more profit , not just to spend the money.

There is tax relief in expenses related to your business , there is also a limit.

Also accountants spend years training so I only know a little a pay 1 to do the thinking:)

[Stephen Blair]

You re invest if it means you will make more profit , not just to spend the money.

There is tax relief in expenses related to your business , there is also a limit.

Also accountants spend years training so I only know a little a pay 1 to do the thinking:)

[skyhuck]

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+

 

Of cause this is correct, but then if we are not going to generalise a bit the whole thread is pointless.

 

What I do think is that when comparing Co's with lowest turnovers with those with the highest, the biggest difference will be in profit.

 

One problem is many don't understand all their costs and fail to take them all into account.

[skyhuck]

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+

 

Of cause this is correct, but then if we are not going to generalise a bit the whole thread is pointless.

 

What I do think is that when comparing Co's with lowest turnovers with those with the highest, the biggest difference will be in profit.

 

One problem is many don't understand all their costs and fail to take them all into account.

[Hodge]

I would disagree about 80k as then you would have to be VAT reg, this in my case would loose me 90% of my customer base. I still say that the VAT limit should be 100k.

[Hodge]

I would disagree about 80k as then you would have to be VAT reg, this in my case would loose me 90% of my customer base. I still say that the VAT limit should be 100k.

[paulb4884]

35k is fine as long as profit is 34k . Turnover is not really a good indication of a good business whats important is profit.

 

exactly

 

turnover is vanity,

profit is sanity!

[paulb4884]

35k is fine as long as profit is 34k . Turnover is not really a good indication of a good business whats important is profit.

 

exactly

 

turnover is vanity,

profit is sanity!

[combined tree services]

All that aside you cant eat turnover !! its great to have a turnover of 150k but if it costs you £149,999.00 in expenses then your not doing quite as well as your turnover would lead you to believe

[combined tree services]

All that aside you cant eat turnover !! its great to have a turnover of 150k but if it costs you £149,999.00 in expenses then your not doing quite as well as your turnover would lead you to believe