Clean It Up
UK Floor Cleaning Forum => Carpet Cleaning Forum => Topic started by: Robin Ray on February 26, 2016, 11:52:47 am
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Following on from the Income poll. How much profit do you make a year. Be honest!
Profit being the money you are left with after all of your yearly expenses are deducted from your turnover.
It will be interesting to compare these to the turnover levels.
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Perhaps it would have been a good idea to have an option that included zero -
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;D look up the word "Hyperbole"
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I don't need to look it up but I am aware its a favourite of yours........... ;)
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Why do you question my illustration of negative profit if you know what it means?
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Nah you've lost me.....
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I don't discuss figures on forums and you shouldn't believe any figures that are offered as they will almost certainly be good old bs.
However, anyone in this industry posting less than 30% net profit will be getting a knock on the door by the tax inspectors.
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Nah you've lost me.....
Oh well..
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Why do you question my illustration of negative profit if you know what it means?
As an aside, I recall a discussion in the 1970s about national airline carriers all of whom seemed to make huge losses year on year.
However Americans being Americans the representative from PanAm denied that they made a loss
....they just made a negative profit!! ;D
Rog
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A very good positive on an otherwise negative.
Well done Rog
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it stops at 50k? :-X
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I agree small time Charlie's the lot of 'em ;D
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Don't stop posting now ..... currently we have 90 people who have voted on their turnover and only 34 who have put their profit.
Where are the other 56?
Do I need to add a higher profit category to accommodate them?
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It is difficult to make comparisons with each other.
Some are just one person running the business others have maybe 2 people on each job other employ staff maybe 2 or more vans on the road.
Some maybe able to charge more because of the area that they work in cost of living more housing cost.
We have 2 people on most jobs whether myself and the wife or one of my daughters someone will then be pricing up work or doing book work or taking calls.
It differcult to compare one business with another.
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At the heart of most businesses is an individual or a partnership wanting to extract as much profit as possible. True some may have multiple employees and area demographics may make a difference. Cost of living shouldn't as this isn't a business expense. The uk provides a pretty level playing field across the board as businesses often exist in areas with a spread of different properties within their operating radius. So if an equal amount of people post on each an average can be taken of both turnover and profit, comparing these should give an average expense figure. Trusting of course everyone who has posted is being truthful.
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I personally would never post my figures on a forum, i generally only tell people who I trust. My main goal though is to increase year on year, which I have done for the past 5 years counting. Didn't really have aims before that so not looked back.
My turnover has increased a lot but I know people who I'm miles ahead of on turnover but only slightly on profit, which i'll admit. However I have employees and want to really grow my business so my advertising expenditure can be quite high.
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Its an anonymous post so no one knows your individual figures. Unless I'm wrong about how this works.
I have employed, contracted and worked individually and think its true to say so far that the higher the turnover the lower the relative profit. So finding that sweet spot is the key.
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Don't stop posting now ..... currently we have 90 people who have voted on their turnover and only 34 who have put their profit.
Where are the other 56?
Do I need to add a higher profit category to accommodate them?
That AND 0 - 7k
Lots of business's will not be doing any or very little profit in the early years.
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Don't stop posting now ..... currently we have 90 people who have voted on their turnover and only 34 who have put their profit.
Where are the other 56?
Do I need to add a higher profit category to accommodate them?
That AND 0 - 7k
Lots of business's will not be doing any or very little profit in the early years.
True.
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Robin Ray
This is a fav subject of mine on here as it covers many areas of debate. how much you charge, what machine you use, and what type of business you have.
AS an example you can have very low overheads and be cheap or choose to charge more. Or you can have high overheads and go for working hard all day with low margins but that turnover is the same as someone thats working a lot less with lower overheads.
So the choices you make with the equipment you buy will have a direct affect on how much you work and make in profit.
Life style is really important. I have been a manager working 16 hours a day and had my own business with 20 people working for me, but now choose to work by myself. I think its great that someone with little education can have all these choices. what a great country and time we live in, -)
Regarding profit from my experience its down to education. is your education being added to to? are you learning? you have to become a new person to get the success you want. An example of this was my maid service I got to a point where I did not have to really work apart from interviewing new customers and staff and some paperwork. I had a great lifestyle in as much as I did not have to work as I had always seen it. but I just did not have the education or knowledge to take my business forwards to the next level. I was rich in time and had some money to spend to enjoy but not really money rich. Down side to this was devil makes work for idle hands -) enter divorce
So you have to become a new person because if we was that person we would have all the knowledge we needed. this is why we need people that have already done it. this is what JP did so well holding up example of people that had trod the path. We really dont have this in carpet cleaning at the moment. BICSc have annual dinners where they give out awards. this serves this purpose and shows members the value of membership. So BICSc is a great model on how to educate people and show them a path to the top of cleaning. And with this rise comes money. now if only we had that model in place in carpet cleaning.
NCCA teaches people but fails to show people by example how to build a business. Franchises do this much better as you have people that will have more than one area and can be modelled by others on how to reach the next level. Only problem is its not really your business your building its really only a job with profit share. -)
Alltech and FT did a good job only problem was there was not transparency in the numbers. when people stood up and said they had done something and is was not backed up with numbers and proof its BS. When you are telling people to do something you need to tell them everything or they dont get the full picture. this is why it failed in the end.
I find that we get so much BS about numbers. So you might ask this question to any cleaner but when pushed for proof all you get is evasion.
You have to ask the question in a way that will tell you the type of business. being self employed and having a wage of £25k is not profit. profit comes after this and is the building blocks of a business.
I would have asked how much are you investing into new customers each year? as if you sell any business its this that has the real value not turnover.
Lets also not forget about good accounting I just give the example of google tax paid in UK this does not mean no profit just numbers being moved around. profit is taxable investment and in google case where the business is registered. investment builds your business and if you pay your self a wage you can give yourself big pay rises this is why bosses earn so much and get big pay rises each year and again with good accounting live a better life . good accounting is key to your wealth dont give it to the government. they make the rules just keep inside them like google does.
More profit means more tax -(
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Robin Ray
This is a fav subject of mine on here as it covers many areas of debate. how much you charge, what machine you use, and what type of business you have.
AS an example you can have very low overheads and be cheap or choose to charge more. Or you can have high overheads and go for working hard all day with low margins but that turnover is the same as someone thats working a lot less with lower overheads.
So the choices you make with the equipment you buy will have a direct affect on how much you work and make in profit.
Life style is really important. I have been a manager working 16 hours a day and had my own business with 20 people working for me, but now choose to work by myself. I think its great that someone with little education can have all these choices. what a great country and time we live in, -)
Regarding profit from my experience its down to education. is your education being added to to? are you learning? you have to become a new person to get the success you want. An example of this was my maid service I got to a point where I did not have to really work apart from interviewing new customers and staff and some paperwork. I had a great lifestyle in as much as I did not have to work as I had always seen it. but I just did not have the education or knowledge to take my business forwards to the next level. I was rich in time and had some money to spend to enjoy but not really money rich. Down side to this was devil makes work for idle hands -) enter divorce
So you have to become a new person because if we was that person we would have all the knowledge we needed. this is why we need people that have already done it. this is what JP did so well holding up example of people that had trod the path. We really dont have this in carpet cleaning at the moment. BICSc have annual dinners where they give out awards. this serves this purpose and shows members the value of membership. So BICSc is a great model on how to educate people and show them a path to the top of cleaning. And with this rise comes money. now if only we had that model in place in carpet cleaning.
NCCA teaches people but fails to show people by example how to build a business. Franchises do this much better as you have people that will have more than one area and can be modelled by others on how to reach the next level. Only problem is its not really your business your building its really only a job with profit share. -)
Alltech did a good job only problem was there was not transparency in the numbers. when people stood up and said I have done this and is was not backed up with numbers and proof you fail. When you are telling people to do something you need to tell them everything or they dont get the full picture. this is why it failed in the end.
I find that we get so much BS about numbers. So you might as this question but when pushed for proof all you get is evasion.
You have to ask the question in a way that will tell you the type of business. being self employed and having a wage of £25k is not profit. profit comes after this and is the building blocks of a business.
I would have asked how much are you investing into new customers each year? as if you sell any business its this that has the real value not turnover.
Lets also not forget about good accounting I just give the example of google tax paid in UK this does not mean no profit just numbers being moved around. profit is taxable investment and in google case where the business is registered. investment builds your business and if you pay your self a wage you can give yourself big pay rises this is why bosses earn so much and get big pay rises each year. good accounting is key to your wealth dont give it to the government. they make the rules just keep inside them like google does.
More profit means more tax -(
Bussines at the core is a relatively simple thing.
The purpose of being in business is to make as much profit in the shortest amount of time possible.
Profit = Whats left after everything is taken away.
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profit smofit, i just love to work
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There is plenty of work out there for those who are not interested in profit. ;D