arb=profit or borderline ??

[aspenarb]

I think profitability is down to viability and efficiency. A one man band who works from home will make a profit from a £300 job when perhaps it would not be the case for a business employing office staff ,running a big yard , loads of kit , trucks and employing lots of guys. On the same note the small guy would fall flat on his face trying to run bigger jobs on ninety day payment terms, I think you need to trade on your strengths and steer away from or sub out jobs that are perhaps out of your comfort zone. On that note you would almost certainly be in profit.

 

Bob

[Paul Jenks]

Making a profit comes down to some pretty basic stuff in any line of business. Use a standard cashflow chart, (get one from an accountant). Work out your costs and work in some profit to cover breakages, replacements, holiday, injury provision etc. Then price jobs according to how much you need to make.

You'll have lean times and good times. Some jobs you'll price right and some wrong. Some jobs go well and some jobs don't. Some machines let you down some don't.

Work some money into you're cashflow/budget forecast for screw ups and you should be ok. It's an iterative process and doesn't stand still. Do it once and re-visit regularly to ensure you're on track.

It's part of being in business. If running a business was easy everyone would do it. It does come easier to some and some make it look easy.

Most businesses in most industries face the same level of challenges and most only make small profits.

Most business 'owners' have a job, they don't own a business. The business owns them. That is not to suggest that many aren't happy about this. Many business owners think that their retirement will be paid for by the sale of their business and that working for peanuts for 20-30 years will be made worthwhile in the end. A business should pay a decent wage to the owner and make a profit on top. What the profit is used for is down to the demands of the business and the whims of the owner.

[jarnii]

That's one of the most sensible thing I've read on here in ages. Good post

[Hodge]

Making a profit comes down to some pretty basic stuff in any line of business. Use a standard cashflow chart, (get one from an accountant). Work out your costs and work in some profit to cover breakages, replacements, holiday, injury provision etc. Then price jobs according to how much you need to make.

You'll have lean times and good times. Some jobs you'll price right and some wrong. Some jobs go well and some jobs don't. Some machines let you down some don't.

Work some money into you're cashflow/budget forecast for screw ups and you should be ok. It's an iterative process and doesn't stand still. Do it once and re-visit regularly to ensure you're on track.

It's part of being in business. If running a business was easy everyone would do it. It does come easier to some and some make it look easy.

Most businesses in most industries face the same level of challenges and most only make small profits.

Most business 'owners' have a job, they don't own a business. The business owns them. That is not to suggest that many aren't happy about this. Many business owners think that their retirement will be paid for by the sale of their business and that working for peanuts for 20-30 years will be made worthwhile in the end. A business should pay a decent wage to the owner and make a profit on top. What the profit is used for is down to the demands of the business and the whims of the owner.

 

Spot on. It's taken me a while to realise! My dad had a small business until he retired 8 years ago and he does my books every week and advises me on how to do things. The main point he has told me is keep overheads down and don't buy anything if you don't need it.

[Stubby]

Spot on. It's taken me a while to realise! My dad had a small business until he retired 8 years ago and he does my books every week and advises me on how to do things. The main point he has told me is keep overheads down and don't buy anything if you don't need it.

 

Yep . Shiny new thing syndrome is the worst thing for a small business .

[kevinjohnsonmbe]

Yep . Shiny new thing syndrome is the worst thing for a small business .

 

And the best! Why do it if you can't treat yourself to an impulse buy once in a while! I'm a sucker for it!

[Matthew Storrs]

The first 3 years of my business was utterly hopeless. The main reason being I'd get asked to do a job and think oh I better buy this bit of kit in order to do it. That bit of kit then would sit around for the next 6 months until the next time it was needed. Consequently any money my business made went straight on half arsed compromising bits of kit, half the problem being that I was taking jobs on that I didn't do regularly and so there was no fluidity in the job and usually ended up making no money, but I would convince myself that it was a loss leader.

My new tact is focus on what your best at, get the right decent kit for it and just focus on that. Been working well ever since converting to this method!

[Undercut]

I guess it's trying to

Do to much you spread yourself thin, focus on what your good at and equip yourself for doing it, defo makes sense all new shiny kit you

Need a mortgage to buy it all right away, and like u say no point if it's not earning it's keep,

[raker]

The first 3 years of my business was utterly hopeless. The main reason being I'd get asked to do a job and think oh I better buy this bit of kit in order to do it. That bit of kit then would sit around for the next 6 months until the next time it was needed. Consequently any money my business made went straight on half arsed compromising bits of kit, half the problem being that I was taking jobs on that I didn't do regularly and so there was no fluidity in the job and usually ended up making no money, but I would convince myself that it was a loss leader.

My new tact is focus on what your best at, get the right decent kit for it and just focus on that. Been working well ever since converting to this method!

 

I went through that.Buying kit for jobs but finding it sat about in the garage.Arbwork is mega slow at the moment tbh.I`ve been building sheds, felting roofs,brushcutting,using the truck to transport things for people etc.

I chased up a few jobs recently that i know i`ve got but`Yeah, leave till after crimbo now`is the normal reply.

I`m doing anything i can for a few sovreigns at the moment.The game season has been a help, but not a great deal in it.Loading is sixty quid plus tip if you`re lucky and some beating.I have picked up some tree work through contacts on game shoots, who can be quite diverse in their work, so its not all bad.Networking is the key.

[Billy]

There's money there if you go about things the right way.

 

 

WM Tree Services

 

http://www.bestkenttreesurgeons.co.uk