Wfp Business Expenses

[John B]

What percentage of your earnings would you say is spent on running your business?

I am not looking to find out how much anyone is earning, just the ratio of earnings/expenses.

Thanks,

John

 

[koopmaster]

in the beginning, say the first year (which a lot of us have just done) my expenses to earnings was high. I would say 50% to 60% for the first 6 months.

I bought all my equipment with the money I made.

Now I have everything for a WFP setup I just need to pay fuel and water so its down to about 5%

 

[M.K Cleaners.co.uk]

Not sure of exact figure but this years it more than 70%. Ive pumped it all right back in, mainly on advertising and equipment

 

[harunh]

80% my insurance kills me

 

[CNS-southwest]

Edited - on wrong topic

 

[crystalview]

Wages , fuel and pre filters and resin every 3 month and the odd break down repair approx 15-20%

 

[Matty H]

Around 8%

 

[Solar Steve]

About 30% usually. More this year cos I have bought loads of new kit.

 

[Richard]

What percentage of your earnings would you say is spent on running your business?
I am not looking to find out how much anyone is earning, just the ratio of earnings/expenses.

Thanks,

John

The RAC/AA breakdown services have calculated it cost on average over £3k a year to run a vehicle, and then if you average £2k a year for all other business cost - £5k per year gives you a reasonable starting figure - divide £5k into your turnover to give you a percentage.

£20K turnover would give you a percentage of 25%

£25k turnover would give you a percentage of 20%

£30k turnover would give you a percentage of 16.5%

£35k turnover would give you a percentage of 14.3%

£40k turnover would give you a percentage of 12.5%

£45k turnover would give you a percentage of 11%%

£50k turnover would give you a percentage of 10%

£55k turnover would give you a percentage of 9.1%

£60k turnover would give you a percentage of 8.3%

£65k turnover would give you a percentage of 7.7%

Richard

 

[harunh]

Cool post richard, all my expenses are on ma van

Tax, mot, service , insurance, diesel etc

On the other hand gotta pay for resin and other bits n bobs regarding wfp

 

[Richard]

Cool post richard, all my expenses are on ma van
Tax, mot, service , insurance, diesel etc

On the other hand gotta pay for resin and other bits n bobs regarding wfp

Thanks H, its basic stuff; you will have fixed cost, not much you can do about those, but your variable cost are different and if you work your prices you can lower the percentages and at the same time increase profits.

In other words - every time you get a new customers your cost go up, drop a customer and put your prices up, profits go up.

There is a lot you should be doing H, other than just increase the number of customers, hopefully the penny will drop, because you are going to be spending £20,000 plus in the next 5 years running a window cleaning business - the only reason someone cant reach max earning within 2 years is because they don’t know how.

Good luck H

Richard

 

[JDMW]

i spend about 40 a week on fuel so that goes down each week, thats really the only expenses i have with my business as i collect rain water. i heard some ppl put there water rates down as they use ro units. not sure if you can do this tho.

 

[Richard]

Assuming you get all your equipment for free during the entire course you are in business for, and someone else buys you your vehicle(s) and you have no insurance, mot or servicing cost etc, £40 per week on fuel is probably going to be your only expense.

I don’t know anyone who is that fortunate

Richard

 

[JDMW]

true i never thought of that lol. insurance websites etc little things like that lol

 

[Richard]

Put all you expenses in mate, they all add up to one bigger number. /emoticons/smile.png

Richard

 

[JDMW]

if i did that id make a loss and tax man would think whats going on here den lol fuel is my biggest outgoing i guess, i do my books every 1/4. ok my website doesnt get put down but everything i buy does. water rates dont go down nor does phone calls etc and other things. mostly its tools etc and fuel. next tax year ill be putting everything down as i think 2013 will be my big year /emoticons/biggrin.png