[Dean Taberner]

Well done Lee,

I enjoy reading this posts,

Good luck and enjoy it mate,

Dean

[AuRavelling79]

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! 

 

[simon123]

As a younger man I never got to second base 

[robbo333]

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.

[Lee Pryor]

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.

[Tom-01]

So did the original business plan not work then?

[Lee Pryor]

So did the original business plan not work then?

This is the original plan

[Og]

Great plan!

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

[sunshine windows]

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. 

[8weekly]

I guess you've looked at franchising outside of you core region?

[dave f]

sounds a bit like dazmond but on a bigger scale lol.

[supernova77]

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]

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

[8weekly]

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]

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]

Do the wages come out of the 30k expenses?

[Lee Pryor]

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.

[Stoots]

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]

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!

[David Kent @ KentKleen]

Here here.