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Lee Pryor

  • Posts: 2285
Setting up a second base
« on: July 14, 2017, 09:57:45 pm »
In about 18 months we plan to set up another base and try to grow that to 10 vans in a 2 year period.

I cannot find another company cleaning houses with 2 bases in the uk, will we be the first? exciting times ahead.  Time for another million leaflets!
The best way to predict the future is to create it.

P @ F

  • Posts: 6312
Re: Setting up a second base
« Reply #1 on: July 14, 2017, 10:02:46 pm »
Just think of all the friends you will make in 18 months  ;D
I'm so lazy I'm getting tired of it !

Lee Pryor

  • Posts: 2285
Re: Setting up a second base
« Reply #2 on: July 14, 2017, 10:04:35 pm »
I am sure I will be as popular as ever!
The best way to predict the future is to create it.

P @ F

  • Posts: 6312
Re: Setting up a second base
« Reply #3 on: July 14, 2017, 10:05:46 pm »
You are gonna need a way bigger TV now Lee !
Fair play to you mate , just dont come to Plymouth eh !
I'm so lazy I'm getting tired of it !

Splash & dash

  • Posts: 4364
Re: Setting up a second base
« Reply #4 on: July 14, 2017, 10:13:53 pm »
In about 18 months we plan to set up another base and try to grow that to 10 vans in a 2 year period.

I cannot find another company cleaning houses with 2 bases in the uk, will we be the first? exciting times ahead.  Time for another million leaflets!
why do you want to have a business that big ? Sounds like a nightmare to me running something that size hope you manage to work it out , I think you will find there are several big firms that have multipal bases in the U.K. , mitie, OCS are just two that spring to mind , not that Ime saying they do a good job though

Og

Re: Setting up a second base
« Reply #5 on: July 14, 2017, 10:14:04 pm »
We're looking at this too.
Albeit on a far smaller scale than yourself. And aiming for the pv market.
Possibilities are endless.

Lee Pryor

  • Posts: 2285
Re: Setting up a second base
« Reply #6 on: July 14, 2017, 10:16:48 pm »
You are gonna need a way bigger TV now Lee !
Fair play to you mate , just dont come to Plymouth eh !

Ah your safe.

Yes there will need to be TV,s I plan to replicate exactly the set up we have now. Same everything.

I actually think it will be quite easy, other than the given issues going through 5 people to get and keep 1 good one. Im prepared for that.
The best way to predict the future is to create it.

Lee Pryor

  • Posts: 2285
Re: Setting up a second base
« Reply #7 on: July 14, 2017, 10:20:17 pm »
In about 18 months we plan to set up another base and try to grow that to 10 vans in a 2 year period.

I cannot find another company cleaning houses with 2 bases in the uk, will we be the first? exciting times ahead.  Time for another million leaflets!
why do you want to have a business that big ? Sounds like a nightmare to me running something that size hope you manage to work it out , I think you will find there are several big firms that have multipal bases in the U.K. , mitie, OCS are just two that spring to mind , not that Ime saying they do a good job though

I mean residential companies not commercial. They do not clean houses. Houses are our main focus.

The answer to why is easy. I want to earn the money. 2 bases would give us a monthly turnover of £130K

Actually its not a nightmare at all. The key is getting and keeping the right people. There is a formular to that which I already have.
The best way to predict the future is to create it.

Splash & dash

  • Posts: 4364
Re: Setting up a second base
« Reply #8 on: July 14, 2017, 10:20:29 pm »
We're looking at this too.
Albeit on a far smaller scale than yourself. And aiming for the pv market.
Possibilities are endless.
are you going to compete with solar steve ?? He seames  to have abandoned the forum again , we have found it un economic to do the big solar farms any more as prices are so poor , still do a few roof mounts on farms and industrial units etc and houses how are you finding the market at the moment ? We are still having a number of large solar farms installed around hear but no local cleaners are intrested in doing them as more money can be earned doing domestic 3 bed semis !!!! Sounds daft but it's true

Splash & dash

  • Posts: 4364
Re: Setting up a second base
« Reply #9 on: July 14, 2017, 10:30:46 pm »
Ah sorry missed the domestic bit !!! That's a lot of houses , dont envy you sorting that lot out two vans is enough for me !! 😂😂😂😂😂

Lee Pryor

  • Posts: 2285
Re: Setting up a second base
« Reply #10 on: July 14, 2017, 10:37:34 pm »
Ah sorry missed the domestic bit !!! That's a lot of houses , dont envy you sorting that lot out two vans is enough for me !! 😂😂😂😂😂

Its actually easier than most realise. Just have the right processes in place, then its just a numbers game. We will need about 5000 houses for 10 vans.
The best way to predict the future is to create it.

Tosh

  • Posts: 2964
Re: Setting up a second base
« Reply #11 on: July 15, 2017, 12:35:07 am »
There's going to be literally hundreds of shiners who work out of more than one base. A place, for example, where they setup, have their main round, the place probably where they learnt the ropes; then when they go and stay at the long-term girlfriends place who lives 150 miles away they've started to develop a round there. Easily done, most guys in that kind of situation have probably reflected on the viability of such a set up.
*A HISTORY OF THE UNIVERSE - THE SHORT STORY* 'Hydrogen is a light, odorless gas, which, given enough time, turns into people.'

STEVE-UK

  • Posts: 1608
Re: Setting up a second base
« Reply #12 on: July 16, 2017, 09:00:20 am »
In about 18 months we plan to set up another base and try to grow that to 10 vans in a 2 year period.

I cannot find another company cleaning houses with 2 bases in the uk, will we be the first? exciting times ahead.  Time for another million leaflets!

Lee, 10 vans in 2 years, you can create £78k round in just over 2 months?  thats good going!

is you work all regular window cleans only or add on services included?

richyp

  • Posts: 592
Re: Setting up a second base
« Reply #13 on: July 20, 2017, 12:57:22 pm »
Do you use facebook for getting new customers lee or is it solely leaflets ?

Lee Pryor

  • Posts: 2285
Re: Setting up a second base
« Reply #14 on: July 20, 2017, 01:03:57 pm »
TV and leaflets. Nothing else now. Facebook, adwords, radio are all a waste of time.

We will use the profit from base 1 to grow base 2. It will require 2 million leaflets over a 2 year period.  Aprox £230k investment over that period.

Steve, 10 vans with us will be more like 60-65K a month. So 2 bases target will be 120-130k a month.

Its all services combined but mostly windows.
The best way to predict the future is to create it.

sunshine windows

  • Posts: 2361
Re: Setting up a second base
« Reply #15 on: July 20, 2017, 01:10:25 pm »
Good on you Lee. Looks like a few on here should be eating a bit of humble pie, after slating you for selling you house to finance the first phase of your operation.

How far afield are you thinking of going from your current location?
To climb mount fuji you must first find a path
(Swindon, Wiltshire)

www.sunshinewindowcleaning.co.uk
www.sunshinesoftwashing.co.uk

Lee Pryor

  • Posts: 2285
Re: Setting up a second base
« Reply #16 on: July 20, 2017, 01:15:29 pm »
Good on you Lee. Looks like a few on here should be eating a bit of humble pie, after slating you for selling you house to finance the first phase of your operation.

How far afield are you thinking of going from your current location?

we go about 30 miles in every direction now. A map of our area is on our website for those that are interested. We will cover  a different area the same size from the new base. In fact everything will be mirrored exactly as it is in base 1. We are at least 18 months away from setting that base up but we are planning it from now.
The best way to predict the future is to create it.

Tom-01

  • Posts: 1348
Re: Setting up a second base
« Reply #17 on: July 20, 2017, 01:46:42 pm »
What brushes are best to clean that many houses?

Lee Pryor

  • Posts: 2285
Re: Setting up a second base
« Reply #18 on: July 20, 2017, 02:35:12 pm »
I can tell you that Gardiners stiff sill brush is our brush of choice!
The best way to predict the future is to create it.

ashbash

Re: Setting up a second base
« Reply #19 on: July 20, 2017, 02:56:00 pm »
great stuff lee but what the end goal

is it to drive a nice car etc or is it so you can retire


Lee Pryor

  • Posts: 2285
Re: Setting up a second base
« Reply #20 on: July 20, 2017, 04:13:26 pm »
great stuff lee but what the end goal

is it to drive a nice car etc or is it so you can retire

The end goal is to have 2 bases, 20 vans on the road and the level of income to have the lifestyle I aspire to, and a business I can be proud of.

I have always had a very clear picture in my mind of the house I want, cars, holidays, work hours each week ect ect....

Those are my goals.

Just to add that I don't look down on anyone who doesn't have those sort of goals. I don't expect to be hated on here because I have those aspirations.
The best way to predict the future is to create it.

Stoots

  • Posts: 6019
Re: Setting up a second base
« Reply #21 on: July 20, 2017, 05:06:42 pm »
Lee. Who do you use for leafletting? Is it royal mail, your own staff or do you outsource to a company?

Tried outsourcing a couple of times but always found results to be very poor vs delivering them myself. So obviously they are not getting delivered.

Lee Pryor

  • Posts: 2285
Re: Setting up a second base
« Reply #22 on: July 20, 2017, 05:18:52 pm »
As many know I use jog post for our delivery. We also use others from time to time.

I think the most important thing when choosing is to get a company that uses GPS tracking with their staff and lets you the customer see that in action.
The best way to predict the future is to create it.

8weekly

Re: Setting up a second base
« Reply #23 on: July 20, 2017, 06:29:44 pm »
Lee. Who do you use for leafletting? Is it royal mail, your own staff or do you outsource to a company?

Tried outsourcing a couple of times but always found results to be very poor vs delivering them myself. So obviously they are not getting delivered.
Get your leafleters to use Strava.

Danny F

  • Posts: 63
Re: Setting up a second base
« Reply #24 on: July 21, 2017, 12:32:03 pm »
very inspiring to see lee but i think its fantastic that you share it on here to show boys what can be done with focus.

David Kent @ KentKleen

  • Posts: 1712
Re: Setting up a second base
« Reply #25 on: July 21, 2017, 01:13:26 pm »
Well done Lee, it is amazing what can be done with grit and determination.  Looks like there is a race on for getting a second base opened for servicing mainly (99%) domestic customers.  ;)

STEVE-UK

  • Posts: 1608
Re: Setting up a second base
« Reply #26 on: July 21, 2017, 02:43:18 pm »
Lee

Do jogpost deliver to rural properties?

 

Lee Pryor

  • Posts: 2285
Re: Setting up a second base
« Reply #27 on: July 21, 2017, 02:46:40 pm »
Lee

Do jogpost deliver to rural properties?

I dont know. I think they need an area of at least 5000
The best way to predict the future is to create it.

STEVE-UK

  • Posts: 1608
Re: Setting up a second base
« Reply #28 on: July 21, 2017, 03:16:37 pm »
Are you nearly at full capacity at your current location?

I do find your plan Interesting and does make me think about the direction I'm going

I don't feel as secure with all my eggs in one basket, so going  down  the route of multiple smaller businesses

What staffing structure will you need to operate each location,  i.e office staff, manager, maintenance, there has to be lower profit margin with the extra staff required to operate, but hey, it's the annual profit you get that makes it all worth while

Lee Pryor

  • Posts: 2285
Re: Setting up a second base
« Reply #29 on: July 21, 2017, 03:33:11 pm »
Are you nearly at full capacity at your current location?

I do find your plan Interesting and does make me think about the direction I'm going

I don't feel as secure with all my eggs in one basket, so going  down  the route of multiple smaller businesses

What staffing structure will you need to operate each location,  i.e office staff, manager, maintenance, there has to be lower profit margin with the extra staff required to operate, but hey, it's the annual profit you get that makes it all worth while

Not quite full here yet. Another year I think.

Each base will have 3 full time office staff. A manager and 2 others so there will never be less than 2 people in each base if someone is off. I will still manage fleet, equipment, marketing and financial things. I will split my work from home and in both bases every few weeks.
The best way to predict the future is to create it.

STEVE-UK

  • Posts: 1608
Re: Setting up a second base
« Reply #30 on: July 21, 2017, 05:13:00 pm »
Sounds like a plan, not too many staff so should be quite manageable,

How many full rounds/ vans running  do you have now ?


supernova77

  • Posts: 3547
Re: Setting up a second base
« Reply #31 on: July 21, 2017, 05:23:33 pm »
Is base number 1 in profit yet?

Mick Kent

  • Posts: 1380
Re: Setting up a second base
« Reply #32 on: July 22, 2017, 10:31:10 am »
TV and leaflets. Nothing else now. Facebook, adwords, radio are all a waste of time.

We will use the profit from base 1 to grow base 2. It will require 2 million leaflets over a 2 year period.  Aprox £230k investment over that period.

Steve, 10 vans with us will be more like 60-65K a month. So 2 bases target will be 120-130k a month.

Its all services combined but mostly windows.

Is 65k a month not enough to be turning over then no? Surely there is over 20k a month profit there.
A million every 4 years.

That aside you surely dont lack ambition or motivation, total fair play for what you have built up and achieved.




Lee Pryor

  • Posts: 2285
Re: Setting up a second base
« Reply #33 on: July 22, 2017, 07:42:53 pm »
Is base number 1 in profit yet?

yes
The best way to predict the future is to create it.

Lee Pryor

  • Posts: 2285
Re: Setting up a second base
« Reply #34 on: July 22, 2017, 07:52:52 pm »
TV and leaflets. Nothing else now. Facebook, adwords, radio are all a waste of time.

We will use the profit from base 1 to grow base 2. It will require 2 million leaflets over a 2 year period.  Aprox £230k investment over that period.

Steve, 10 vans with us will be more like 60-65K a month. So 2 bases target will be 120-130k a month.

Its all services combined but mostly windows.

Is 65k a month not enough to be turning over then no? Surely there is over 20k a month profit there.
A million every 4 years.

That aside you surely dont lack ambition or motivation, total fair play for what you have built up and achieved.

£20k yes

After corporation tax and dividend tax its still not a lot IMO. I want to be taking home after all taxes something like 17-20K a month. We viewed a brand new house last weekend that was £1.5m the monthly repayment is £5k throw in a few nice cars for me and the mrs ect ect holidays. I want to be able to save 5-7K a month so we can by an ivestment property every 2 years (pension plan) we would like to by a villa in portugal as the first one ect sudenly to have that life that is the amount required to make it happen.

I always picture my end goals and work out how much is required to make it happen.  That is the life I have decided to have. It doesnt make me wrong, greedy, unhappy and all the other names I get called here. It just means thats what I want. Others want different things and thats fine.

The best way to predict the future is to create it.

AuRavelling79

  • Posts: 23462
Re: Setting up a second base
« Reply #35 on: July 23, 2017, 09:00:58 am »
Well done Lee! An inspiration and a reminder as to what can be done.

But don't forget to enjoy the journey.

All work and no play ... and even Luke 12 v 16 - 20.  ;)
It's a game of three halves!

Delta

Re: Setting up a second base
« Reply #36 on: July 23, 2017, 09:34:35 am »
Hello Lee,
I really admire your drive and enthusiasm. I would love your set up but managing that many employees would scare me :-)

With 12 employees how to you mange their 28 day holiday periods? I can see how the girls could cover for each other but what about the window cleaners? Do you just move on their round on a week or two on CP or do you try and get the work done?

Walter Mitty

  • Posts: 1314
Re: Setting up a second base
« Reply #37 on: July 23, 2017, 09:38:28 am »
Well done Lee! An inspiration and a reminder as to what can be done.

But don't forget to enjoy the journey.

All work and no play ... and even Luke 12 v 16 - 20.  ;)

I just looked that up online (I don't have one in my book collection).  It was archaic language and I read it as (paraphrased) "Have fun, because you can't take it with you."  :)   Hope you didn't book time for making that post :)

Lee Pryor

  • Posts: 2285
Re: Setting up a second base
« Reply #38 on: July 23, 2017, 09:49:14 am »
Hello Lee,
I really admire your drive and enthusiasm. I would love your set up but managing that many employees would scare me :-)

With 12 employees how to you mange their 28 day holiday periods? I can see how the girls could cover for each other but what about the window cleaners? Do you just move on their round on a week or two on CP or do you try and get the work done?

We don't have 12 cleaners yet.

Without going into all the small details. Holiday, sickness, tax.......ect ect is part of any business and you simply factor those things into the model.
The best way to predict the future is to create it.

Tosh

  • Posts: 2964
Re: Setting up a second base
« Reply #39 on: July 23, 2017, 10:01:04 am »
Lee, bung us a tenner ;)
*A HISTORY OF THE UNIVERSE - THE SHORT STORY* 'Hydrogen is a light, odorless gas, which, given enough time, turns into people.'

Dean Taberner

  • Posts: 4164
Re: Setting up a second base
« Reply #40 on: July 23, 2017, 11:29:23 am »
Well done Lee,

I enjoy reading this posts,

Good luck and enjoy it mate,

Dean
Operations manager at J.V Price Ltd

http://www.thepricegroup.co.uk

AuRavelling79

  • Posts: 23462
Re: Setting up a second base
« Reply #41 on: July 23, 2017, 12:04:42 pm »
Well done Lee! An inspiration and a reminder as to what can be done.

But don't forget to enjoy the journey.

All work and no play ... and even Luke 12 v 16 - 20.  ;)

I just looked that up online (I don't have one in my book collection).  It was archaic language and I read it as (paraphrased) "Have fun, because you can't take it with you."  :)  Hope you didn't book time for making that post :)

Of course I did - and this one is a Return Visit too!  ::)roll

 ;D
It's a game of three halves!

simon123

  • Posts: 655
Re: Setting up a second base
« Reply #42 on: July 23, 2017, 12:15:32 pm »
As a younger man I never got to second base  ;D
I am getting too old to be around people who  don't understand the concept of  loyalty and honesty.

robbo333

  • Posts: 2406
Re: Setting up a second base
« Reply #43 on: July 23, 2017, 06:49:30 pm »
Best wishes Lee.
I guess when you have exhausted all the quality leads within your chosen area, the next natural progression for growth is to move to a new area and repeat the same. Hope it works out for you.
"Thank you for calling: if you have a 1st floor flat, mid terraced house, lots of dogs, no parking, no side access, or no sense of humour, please press hold!
For all other enquiries, please press1"

Lee Pryor

  • Posts: 2285
Re: Setting up a second base
« Reply #44 on: July 23, 2017, 07:06:30 pm »
Best wishes Lee.
I guess when you have exhausted all the quality leads within your chosen area, the next natural progression for growth is to move to a new area and repeat the same. Hope it works out for you.

Exactly.
The best way to predict the future is to create it.

Tom-01

  • Posts: 1348
Re: Setting up a second base
« Reply #45 on: July 23, 2017, 08:44:06 pm »
So did the original business plan not work then?

Lee Pryor

  • Posts: 2285
Re: Setting up a second base
« Reply #46 on: July 23, 2017, 09:22:43 pm »
So did the original business plan not work then?

This is the original plan
The best way to predict the future is to create it.

Og

Re: Setting up a second base
« Reply #47 on: July 24, 2017, 07:26:47 am »
Great plan!

How come you're using vivaros? Are they a 2.0 l engine? Going out with one guy in each?

sunshine windows

  • Posts: 2361
Re: Setting up a second base
« Reply #48 on: July 24, 2017, 07:46:04 am »
Will you be happy with 2 bases though Lee, or can you see yourself rolling this out on a national level. Personally I think you like the challenge and will keep growing and expanding. 
To climb mount fuji you must first find a path
(Swindon, Wiltshire)

www.sunshinewindowcleaning.co.uk
www.sunshinesoftwashing.co.uk

8weekly

Re: Setting up a second base
« Reply #49 on: July 24, 2017, 07:52:33 am »
I guess you've looked at franchising outside of you core region?

dave f

Re: Setting up a second base
« Reply #50 on: July 25, 2017, 06:52:11 am »
sounds a bit like dazmond but on a bigger scale lol.

supernova77

  • Posts: 3547
Re: Setting up a second base
« Reply #51 on: July 25, 2017, 04:52:43 pm »
Is base number 1 in profit yet?

yes

Oh right?

A couple of months ago you said you were hoping to be in profit within the next 2 years ???

Personally I wouldn't think of a second base until the first one was in profit, but I hope the plans go well.

Lee Pryor

  • Posts: 2285
Re: Setting up a second base
« Reply #52 on: July 25, 2017, 05:11:42 pm »
well that depends on why a business is or isn't in profit. In our case we are in profit if I choose to stop spending the profit on further growth.  For example our month to month expenses are about £30K, our turnover is about £50K take the Vat off that which is about £6K (after claim backs)  and we have a pre tax profit of £14K a month, which I either spend on more marketing or not.

So on paper we are well into profit. The reason I said 2 years is because that's how long I intend to keep spending to grow at this pace. If we open a second base next year then we continue to spend the profit.

What I think you meant by profit is our turnover not exceeding our fixed monthly expenses........................... Is everyone still paying attention? lol
The best way to predict the future is to create it.

8weekly

Re: Setting up a second base
« Reply #53 on: July 25, 2017, 06:01:04 pm »
well that depends on why a business is or isn't in profit. In our case we are in profit if I choose to stop spending the profit on further growth.  For example our month to month expenses are about £30K, our turnover is about £50K take the Vat off that which is about £6K (after claim backs)  and we have a pre tax profit of £14K a month, which I either spend on more marketing or not.

So on paper we are well into profit. The reason I said 2 years is because that's how long I intend to keep spending to grow at this pace. If we open a second base next year then we continue to spend the profit.

What I think you meant by profit is our turnover not exceeding our fixed monthly expenses........................... Is everyone still paying attention? lol
If you're spending that £14k you aren't in profit and it's possible that the marketing spend is needed to drive one offs because there isn't enough regular scheduled work. I get your point, but on paper you are making a loss. I'm quite certain you will be in profit once you reach saturation for the vans you already have mind.

Tom-01

  • Posts: 1348
Re: Setting up a second base
« Reply #54 on: July 25, 2017, 06:58:12 pm »
That's why I assumed the original business plan didn't work, because he stated early on that he wouldn't need to grow it beyond his original base for the lifestyle wanted, but the costs seem like they are more than planned so another 10 vans need to be set up to achieve the original goal.

Bungle

  • Posts: 2224
Re: Setting up a second base
« Reply #55 on: July 25, 2017, 07:06:20 pm »
Do the wages come out of the 30k expenses?
We look at them, they look through them.

Lee Pryor

  • Posts: 2285
Re: Setting up a second base
« Reply #56 on: July 25, 2017, 07:16:43 pm »
well that depends on why a business is or isn't in profit. In our case we are in profit if I choose to stop spending the profit on further growth.  For example our month to month expenses are about £30K, our turnover is about £50K take the Vat off that which is about £6K (after claim backs)  and we have a pre tax profit of £14K a month, which I either spend on more marketing or not.

So on paper we are well into profit. The reason I said 2 years is because that's how long I intend to keep spending to grow at this pace. If we open a second base next year then we continue to spend the profit.

What I think you meant by profit is our turnover not exceeding our fixed monthly expenses........................... Is everyone still paying attention? lol
If you're spending that £14k you aren't in profit and it's possible that the marketing spend is needed to drive one offs because there isn't enough regular scheduled work. I get your point, but on paper you are making a loss. I'm quite certain you will be in profit once you reach saturation for the vans you already have mind.


Sorry but thats not correct as I have explained there. We dont do one offs for a start . I am choosing to not be in profit by spending the profit, If I choose to do no marketing in a month then we have clear profit.

Yes bungle that includes the wages. Once again I have clearly mentioned fixed and chosen expenses in the breakdown. Clearly wages are a fixed expense that I cannot choose to not pay each month

No my origional plan would deliver the origional amount but I have extended that plan because im enjoying the process and I simply want to earn more money in the long run.  Why stop at earning 10K a month when it could be 20 for another 2-3 years effort.
The best way to predict the future is to create it.

Stoots

  • Posts: 6019
Re: Setting up a second base
« Reply #57 on: July 25, 2017, 07:30:27 pm »
well that depends on why a business is or isn't in profit. In our case we are in profit if I choose to stop spending the profit on further growth.  For example our month to month expenses are about £30K, our turnover is about £50K take the Vat off that which is about £6K (after claim backs)  and we have a pre tax profit of £14K a month, which I either spend on more marketing or not.

So on paper we are well into profit. The reason I said 2 years is because that's how long I intend to keep spending to grow at this pace. If we open a second base next year then we continue to spend the profit.

What I think you meant by profit is our turnover not exceeding our fixed monthly expenses........................... Is everyone still paying attention? lol
If you're spending that £14k you aren't in profit and it's possible that the marketing spend is needed to drive one offs because there isn't enough regular scheduled work. I get your point, but on paper you are making a loss. I'm quite certain you will be in profit once you reach saturation for the vans you already have mind.


Sorry but thats not correct as I have explained there. We dont do one offs for a start . I am choosing to not be in profit by spending the profit, If I choose to do no marketing in a month then we have clear profit.

Yes bungle that includes the wages. Once again I have clearly mentioned fixed and chosen expenses in the breakdown. Clearly wages are a fixed expense that I cannot choose to not pay each month

No my origional plan would deliver the origional amount but I have extended that plan because im enjoying the process and I simply want to earn more money in the long run.  Why stop at earning 10K a month when it could be 20 for another 2-3 years effort.


Technically though you are increasing revenue not profit. If you are spending your profit back into growth ( very wise btw) that profit now becomes an expense and what you are left with after this is your profit (technically)

What you are saying is once you pull the plug on marketting you will very quickly be in profit as you will have a much higher revenue than you would have if you simply stopped now.

Great plan though, im going to do the same...It makes perfect business sense to invest most of your profit back into marketting, you only pay tax on profit so why not shove it all back in reduce your taxes and grow your turnover/revenue then in a few years time pull the plug. Just like water building up behind a dam, looks like you have nothing for years then bam break the dam and watch the flood...if you keep taking money out of  the business it will only ever produce drips of money for you never a flood




Lee Pryor

  • Posts: 2285
Re: Setting up a second base
« Reply #58 on: July 25, 2017, 07:53:38 pm »
well that depends on why a business is or isn't in profit. In our case we are in profit if I choose to stop spending the profit on further growth.  For example our month to month expenses are about £30K, our turnover is about £50K take the Vat off that which is about £6K (after claim backs)  and we have a pre tax profit of £14K a month, which I either spend on more marketing or not.

So on paper we are well into profit. The reason I said 2 years is because that's how long I intend to keep spending to grow at this pace. If we open a second base next year then we continue to spend the profit.

What I think you meant by profit is our turnover not exceeding our fixed monthly expenses........................... Is everyone still paying attention? lol
If you're spending that £14k you aren't in profit and it's possible that the marketing spend is needed to drive one offs because there isn't enough regular scheduled work. I get your point, but on paper you are making a loss. I'm quite certain you will be in profit once you reach saturation for the vans you already have mind.


Sorry but thats not correct as I have explained there. We dont do one offs for a start . I am choosing to not be in profit by spending the profit, If I choose to do no marketing in a month then we have clear profit.

Yes bungle that includes the wages. Once again I have clearly mentioned fixed and chosen expenses in the breakdown. Clearly wages are a fixed expense that I cannot choose to not pay each month

No my origional plan would deliver the origional amount but I have extended that plan because im enjoying the process and I simply want to earn more money in the long run.  Why stop at earning 10K a month when it could be 20 for another 2-3 years effort.


Technically though you are increasing revenue not profit. If you are spending your profit back into growth ( very wise btw) that profit now becomes an expense and what you are left with after this is your profit (technically)

What you are saying is once you pull the plug on marketting you will very quickly be in profit as you will have a much higher revenue than you would have if you simply stopped now.

Great plan though, im going to do the same...It makes perfect business sense to invest most of your profit back into marketting, you only pay tax on profit so why not shove it all back in reduce your taxes and grow your turnover/revenue then in a few years time pull the plug. Just like water building up behind a dam, looks like you have nothing for years then bam break the dam and watch the flood...if you keep taking money out of  the business it will only ever produce drips of money for you never a flood


FINALLY!!!!!!!!!

Someone gets it!
The best way to predict the future is to create it.

David Kent @ KentKleen

  • Posts: 1712
Re: Setting up a second base
« Reply #59 on: July 25, 2017, 09:42:00 pm »
Here here.

robbo333

  • Posts: 2406
Re: Setting up a second base
« Reply #60 on: July 25, 2017, 09:57:27 pm »
Invest, invest, invest, invest...Oh hang on...invest, invest, invest...bored now...millionaire! So cool.
"Thank you for calling: if you have a 1st floor flat, mid terraced house, lots of dogs, no parking, no side access, or no sense of humour, please press hold!
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David Kent @ KentKleen

  • Posts: 1712
Re: Setting up a second base
« Reply #61 on: July 25, 2017, 10:16:09 pm »
Guess you don't invest.

robbo333

  • Posts: 2406
Re: Setting up a second base
« Reply #62 on: July 25, 2017, 10:44:41 pm »
That was actually a positive comment for Lee. He will invest and grow until he decides not to. I am guessing by then he will be close to a millionaire. Good luck to him.
The bit that said. 'so cool'. I meant it. I think what Lee is doing is cool!
 As for myself...what the f++k has it got to do with you!
"Thank you for calling: if you have a 1st floor flat, mid terraced house, lots of dogs, no parking, no side access, or no sense of humour, please press hold!
For all other enquiries, please press1"

David Kent @ KentKleen

  • Posts: 1712
Re: Setting up a second base
« Reply #63 on: July 25, 2017, 11:04:08 pm »
Nothing at all! I didn't ask anything.  :D

robbo333

  • Posts: 2406
Re: Setting up a second base
« Reply #64 on: July 25, 2017, 11:07:43 pm »
Sorry its late and I miss read it. Applologies.
"Thank you for calling: if you have a 1st floor flat, mid terraced house, lots of dogs, no parking, no side access, or no sense of humour, please press hold!
For all other enquiries, please press1"