Expenses pie chart?

Stumpsprouts · Dec 2, 2020

I’ve been a contract climber since March, and I’m gathering my income and expenses for the year in a spreadsheet, a very good way to keep myself from spending a bunch of money on these sales going on right now.

I’m wondering if folks would care to recommend a general target for percentage of profit over loss for a year. Also, what percentage for labor, overhead, insurance, equipment, and vehicles. Asking a lot... but it would be really helpful for me (and maybe others) looking to get a business plan for the next few years.

Obviously everyone starts differently. Some take out large loans and start big. I’m not into that. I’ve been able to do 95% of my work out of my Yaris and slowly built up a f250 dump for light duty chipping and log/brush loading. Plan to continue to mostly contract with companies but also take on some small jobs. Thanks in advance for advice!

Reach · Dec 2, 2020

You’ve posed a very good question, and unfortunately there is not an easy answer. Your costs and your percentages are different from mine, and from everyone else out there. To figure out what your numbers should be, I recommend sitting down with your accountant or your financial advisor/business coach and they can help you to determine what your numbers should be.

Take note too that those numbers will change over time. As your company grows, the percentages will change, and your accountant can help you adjust them as they do.

southsoundtree · Dec 2, 2020

As an owner operator, your payroll (wages and taxes, plus payroll service fees), HR expenses, Worker's Comp, breakage/ loss, call-backs for touch-ups, etc will be way different than if you have one employee, or two, or...

Loaders are way better than employees...$0.02.

Sounds like a profitable set-up, minimal headaches.

bonner1040 · Dec 2, 2020

I would think that as a small business with no non-standard debt you should be aiming to spend about .50 of every dollar on labor and staff, .25 of every dollar on overhead/debt/investing in the business, and taking .25 of every dollar as profit for the shareholders (you).

Broad strokes.

VenasNursery · Dec 2, 2020

southsoundtree said:
As an owner operator, your payroll (wages and taxes, plus payroll service fees), HR expenses, Worker's Comp, breakage/ loss, call-backs for touch-ups, etc will be way different than if you have one employee, or two, or...

Loaders are way better than employees...$0.02.

Sounds like a profitable set-up, minimal headaches

Best Owner
Best Customers
Best employees
Best equipment

Best Results
It’s like a well oiled machine
Each gear turns another
If one gets weak it breaks

mans the machine doesn’t run as good

VenasNursery · Dec 2, 2020

Stumpsprouts said:
I’ve been a contract climber since March, and I’m gathering my income and expenses for the year in a spreadsheet, a very good way to keep myself from spending a bunch of money on these sales going on right now.

I’m wondering if folks would care to recommend a general target for percentage of profit over loss for a year. Also, what percentage for labor, overhead, insurance, equipment, and vehicles. Asking a lot... but it would be really helpful for me (and maybe others) looking to get a business plan for the next few years.

Obviously everyone starts differently. Some take out large loans and start big. I’m not into that. I’ve been able to do 95% of my work out of my Yaris and slowly built up a f250 dump for light duty chipping and log/brush loading. Plan to continue to mostly contract with companies but also take on some small jobs. Thanks in advance for advice!

My goal is
1/3 employees
1/3 company
1/3 profit

it fluctuates day to day it seems to work out at the end of the year

I have a great week my bids get too cheap
Bad week prices get expensive
I’m Still trying to work on consistency

Reach · Dec 2, 2020

Also a suggestion for you, if you have no already done so - find a good business coach in your area, and get yourself on a plan of meetings, ideally once a month. It will be a bit expensive, easily $400 a month or so, but a good coach will prove to earn you far more than that, and will reach you things about yourself and about business that you didn’t realize you needed to learn.

If that’s not in your budget right now, consider contacting your local SCORE chapter to find a good business mentor. https://www.score.org/

Stumpsprouts · Dec 3, 2020

Reach said:
Also a suggestion for you, if you have no already done so - find a good business coach in your area, and get yourself on a plan of meetings, ideally once a month. It will be a bit expensive, easily $400 a month or so, but a good coach will prove to earn you far more than that, and will reach you things about yourself and about business that you didn’t realize you needed to learn.

If that’s not in your budget right now, consider contacting your local SCORE chapter to find a good business mentor. https://www.score.org/

Much appreciate this and all the other replies so far. Taking it all in.