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Question for the business owners...

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  • #1

    Question for the business owners...

    How much money do you put back into your business? Guess I'm mainly looking for a percentage # not a dollar sign. Like you put 40% into your company and the rest goes to labor and other costs.

    Just trying to guage where I need to be within my little company
    2008 Meguiar's Batmobile Team
    2008 Meguiar's/Ford SEMA Team
    2009 Meguiar's/Ford SEMA Team
    2010 Meguiar's/Ford SEMA Team
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  • #2
    Re: Question for the business owners...

    Not sure I understand. For me it all goes into the business then I take a salary out.
    AeroCleanse, LLC
    Wisconsin's Elite Detailing Service
    www.aerocleanse.com

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    • #3
      Re: Question for the business owners...

      In most instances a business is set up into 3rds. One third is the cost of doing business (supplies etc.). The second third is salaries. The final third is hard assets and profits. In a service business with a low supply cost your labor could be higher.
      This is a rather simple version things could be more complicated and usually are.
      In a small business you may have no hard assets (buildings etc.), to start off you may have only your labor, but you might down the road. Get the help of an accountant to set all this up.
      Chef and Dr. of Min.

      God is a good God, He loves you, and He wants to bless you.

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      • #4
        Re: Question for the business owners...

        Originally posted by AeroCleanse View Post
        Not sure I understand. For me it all goes into the business then I take a salary out.
        If you pay yourself a salary, divide that by the total gross, and thats what you're taking out. The rest is going back into the company. Example... 20% salary/80% back into the company.

        Just trying to gauge what everyone else is doing. I have larger plans for the future, and trying to figure out what I need to place aside to make these things happen.
        2008 Meguiar's Batmobile Team
        2008 Meguiar's/Ford SEMA Team
        2009 Meguiar's/Ford SEMA Team
        2010 Meguiar's/Ford SEMA Team

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        • #5
          Re: Question for the business owners...

          I find that my detailing costs are quite low, so I would say about 20% goes back in, and the rest is mine. Keep in mind, though, I run my business more out of passion and enjoyment than as a means of profit. I use the "profits" to cover some of my monthly expenses, but I mostly am living off of savings while finishing my degree.

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          • #6
            Re: Question for the business owners...

            80% Profit 20% Business replenishing products ..No employees, no over head ...
            Joe's detailing (Since 2002)
            ''We begin where the car wash Ends.''
            (269)650-2242

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