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Turnover/Pay %?
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Mrs R



Joined: 15 Aug 2008
Posts: 7202

PostPosted: Mon Jun 06, 11 8:27 pm    Post subject: Turnover/Pay %? Reply with quote
    

After a meeting with the bank manager we worked out that all of us here achieve about the same turnover, and pay ourselves at about the same rate - 10% of total turnover. I think if all goes swimmingly, I should be able/aim to be taking 20% in future.

Just wondering what sort of % others pay themselves compared to turnover, 'should' it be higher??

Penny Outskirts



Joined: 18 Sep 2005
Posts: 23385
Location: Planet, not on the....
PostPosted: Mon Jun 06, 11 8:32 pm    Post subject: Reply with quote
    

I suppose it depends what the business can bare, what your gross profit margin is like.

Ours in only about 10% at the moment, it would be nice to have more

Mrs R



Joined: 15 Aug 2008
Posts: 7202

PostPosted: Mon Jun 06, 11 8:47 pm    Post subject: Reply with quote
    

yay another 10%er!

vegplot



Joined: 19 Apr 2007
Posts: 21298
Location: Ynys Môn
PostPosted: Mon Jun 06, 11 8:52 pm    Post subject: Reply with quote
    

2.5%

crofter



Joined: 11 Feb 2007
Posts: 2252

PostPosted: Mon Jun 06, 11 9:20 pm    Post subject: Reply with quote
    

It depends on your priorities and what you want to achieve. Mine is different every year, never as much as 10% though.

Penny Outskirts



Joined: 18 Sep 2005
Posts: 23385
Location: Planet, not on the....
PostPosted: Mon Jun 06, 11 9:32 pm    Post subject: Reply with quote
    

Mrs R wrote:
yay another 10%er!


Actually, thinking about it, I'm a 5%, as we take 10% between us

jema
Downsizer Moderator


Joined: 28 Oct 2004
Posts: 26984
Location: escaped from Swindon
PostPosted: Tue Jun 07, 11 12:13 am    Post subject: Reply with quote
    

Depends on the business.

My expenses are about 15% of turnover.

sally_in_wales
Downsizer Moderator


Joined: 06 Mar 2005
Posts: 20809
Location: sunny wales
PostPosted: Tue Jun 07, 11 7:49 am    Post subject: Reply with quote
    

We're at that scary stage where every last penny not used to run the business is used to run basically staying fed and housed. That probably looks like a very healthy percentage on paper, but its not deliberate.

Rob R



Joined: 28 Oct 2004
Posts: 31902
Location: York
PostPosted: Tue Jun 07, 11 8:51 am    Post subject: Reply with quote
    

Penny Outskirts wrote:
Mrs R wrote:
yay another 10%er!


Actually, thinking about it, I'm a 5%, as we take 10% between us


Isn't it still 10%, as you each have a 50% share of the turnover also?

Penny Outskirts



Joined: 18 Sep 2005
Posts: 23385
Location: Planet, not on the....
PostPosted: Tue Jun 07, 11 8:58 am    Post subject: Reply with quote
    

Rob R wrote:
Penny Outskirts wrote:
Mrs R wrote:
yay another 10%er!


Actually, thinking about it, I'm a 5%, as we take 10% between us


Isn't it still 10%, as you each have a 50% share of the turnover also?


Ah ha - clever puppy!

Mrs R



Joined: 15 Aug 2008
Posts: 7202

PostPosted: Tue Jun 07, 11 9:04 am    Post subject: Reply with quote
    

sally_in_wales wrote:
We're at that scary stage where every last penny not used to run the business is used to run basically staying fed and housed. That probably looks like a very healthy percentage on paper, but its not deliberate.


haha, we're more or less the same, a little better than we used to be but we're not exactly living it up!

Pleased to know that 10% is actually quite normal/good, I kinda thought that perhaps it should be 25% or really, the business isn't working!!

gz



Joined: 23 Jan 2009
Posts: 7006
Location: Ayrshire, Scotland
PostPosted: Tue Jun 07, 11 10:41 am    Post subject: Reply with quote
    

Good to know what to aim for- just need some sales!!!

vegplot



Joined: 19 Apr 2007
Posts: 21298
Location: Ynys Môn
PostPosted: Tue Jun 07, 11 10:49 am    Post subject: Reply with quote
    

Mrs R wrote:


Pleased to know that 10% is actually quite normal/good, I kinda thought that perhaps it should be 25% or really, the business isn't working!!


You might be right

Jenna



Joined: 30 Sep 2005
Posts: 263
Location: Away with the fairies
PostPosted: Tue Jun 07, 11 12:03 pm    Post subject: Reply with quote
    

In boarding kennels, 'it is assumed that' the owner should get about 50% of the takings in his R's pocket (oh hang about, tax and NI to come off that). My wages (~4.5K) are around 10% of our turnover, but I'm just the scumbag. Shocking that others get to 'keep' so little of their 'hard-earned'!

welsh veg grower



Joined: 23 Jan 2009
Posts: 2030
Location: here today but tomorrow...
PostPosted: Tue Jun 07, 11 12:11 pm    Post subject: Reply with quote
    

Not sure its as straight forwrd as this really. It depends a lot on the business and your personal requirements as well as the profit margins on your particluar business.

You should be looking at what you need to earn and then using that as a guide to helping you work out what you need to charge / bring in to the business and what costs you need to keep down in order to make the profit element you need.

Ok Ok and also its not that simple because custoemrs have to buy and all things have to go well which can be a chalange

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