Whale Rage Forever
Member
- Location
- Missouri
- Occupation
- Electrician
I started in business for myself recently. It's been about a half a year now, and I wanted to figure out a baseline for what I should be improving as far as the following stats.
1-Of the revenue I generate, 48.49% goes to pay for expenses: 26.46% of which is supplies that get used on jobs, 6.04% for lead generation services, 15.99% to all the other miscellaneous costs of business. Half my revenue going to expenses seems...bad.
I'm also not certain that I should even be counting supplies as an "expense". If supplies are marked up on the customer’s side of things, do they count as an expense? If something costs $100 to get, and I charge the customer $130 just to obtain it, that is essentially a form of revenue and not a cost. Is my actual expense to revenue percentage only 22.03%?
2-I have avoided a few key things up to now that I suspect I am going to have to deal with sooner rather than later. I am right on the threshold of having an amount of work that would necessitate getting, for example, an office clerk to handle beuracratic affairs on my behalf. Likewise, the ever looming notion of hiring other electricians weighs heavily on my mind. I am not particularly excited at the prospect of hiring other people, and would like to hear what others have to say regarding that matter.
3-Similar to #2, I am weighing my options for what I will need to do in order to obtain a proper service van. I currently use an old, but very well cared for pickup truck for work purposes, but it simply does not have the storage capabilities that a service van does.
That said, I'm not terribly eager to throw myself at a vehicle that's going to set me back like $50 grand, however. Possibly more after you add in the wrap and detailing for the business info.
I have proven to myself that I am capable of growing a business over time, and now that I'm getting bigger I'm basically concerned about over-reaching. Advice appreciated.
1-Of the revenue I generate, 48.49% goes to pay for expenses: 26.46% of which is supplies that get used on jobs, 6.04% for lead generation services, 15.99% to all the other miscellaneous costs of business. Half my revenue going to expenses seems...bad.
I'm also not certain that I should even be counting supplies as an "expense". If supplies are marked up on the customer’s side of things, do they count as an expense? If something costs $100 to get, and I charge the customer $130 just to obtain it, that is essentially a form of revenue and not a cost. Is my actual expense to revenue percentage only 22.03%?
2-I have avoided a few key things up to now that I suspect I am going to have to deal with sooner rather than later. I am right on the threshold of having an amount of work that would necessitate getting, for example, an office clerk to handle beuracratic affairs on my behalf. Likewise, the ever looming notion of hiring other electricians weighs heavily on my mind. I am not particularly excited at the prospect of hiring other people, and would like to hear what others have to say regarding that matter.
3-Similar to #2, I am weighing my options for what I will need to do in order to obtain a proper service van. I currently use an old, but very well cared for pickup truck for work purposes, but it simply does not have the storage capabilities that a service van does.
That said, I'm not terribly eager to throw myself at a vehicle that's going to set me back like $50 grand, however. Possibly more after you add in the wrap and detailing for the business info.
I have proven to myself that I am capable of growing a business over time, and now that I'm getting bigger I'm basically concerned about over-reaching. Advice appreciated.
