PDA

View Full Version : gross and net earnings



btoooo
09-03-2007, 10:38 AM
Hi everyone
A question from someone about to start up a lawn business
I have researched about as much as I can including great sites like this.
I am still a little unsure about how much I can earn, experienced operators use various figures to describe what they earn.
Using an example of $1000 dollars a week TURNOVER and not including tax (as the rates vary)
What would I need to deduct (average) to arrive at a NET figure ??

regards btoooo

collingwood
09-03-2007, 06:01 PM
hi mate.

The way i do this........if i get a $1000 for the week (which is very lettle money) i would take out 10%GST from $1000 = $900 Gross then i take out 25% TAX which = $675.00.

Remember if you tax yourself a little more the more you'll get back @ the end of the year + business costs etc. If you try to look up your tax to pay in the weekly tax sheet you will get stung in paying more money than you have put away. Talk to your accontant on why.Also pay your TAX & GST from your business a/c
and they will not give you any ****.(As long as you pay your GST & TAX on time)

With GST even if you arn't earning $50,000 pa a year you should still charge gst (once reg) As when i first started i brought a Toyota Hilux 4 $20,000, trailer & other gear $15,000, total being $35,000. And i got back 10% GST on my business start up costs.

Now i pay my GST & TAX monthly. Remember with GST you will only get money back if you have payed more GST than charged.

P.S All you guys have it easy over in the eastern states as hardly any of you use a roller mower..! WHY! They give you a much better cut eg:its like you trying to shave with a blunt knife instead of a razer!!!

Kind Regards G.S Mowing (WA)

btoooo
09-03-2007, 07:28 PM
Thanks gs for your great reply,it makes things clearer as I have heard all sorts of wild numbers thrown about.
The reason the roller mower is not "in" is purely a cost thing
I have however seen first hand the superior job it does on lawns wet and dry.

kind regards
btoooo

kakegc
10-03-2007, 11:50 AM
Hi Btoooo, there are way too many variables to accurately predict your weekly expenses but here we go; Fuel: I pay around $100 a week, but it would depend on what vehicle you use & how far you're prepared to travel. Dump fees: it depends on where you are located? from what I've read on here, every town has a different scale of fees for dumping green waste. Vehicle & equipment maintenace: once again, it depends on what you use. If you have a new or near new Ute & trailer the costs will be low. If you have older stuff, the costs to keep it on the road will obviously go up. If you buy a Honda mower, the only maintenace that I'd expect in the first 2 years would be oil, air filters, spark plugs & maybe new wheels & a catcher depending on how much work it does. If you buy another brand, you may need to look to replace it after a year or 2. I wore out the self propelled Mechanism on a rover in a year. In that year, I also spent $$$$$$ & heaps of time keeping it running. No such issues with the Honda. Gardening supplies: once again, it depends on what you intend to do in your business, mow only or general gardening as well?. But regardless, you will require poisons & probably irrigation parts, mulch, plants, fertilisers etc, etc, etc Tools & general hardware: Spades, mattocks, loppers, pruners, all wear out (and get knocked off occasionally!), as do snippers, blowers, hedge trimmers, chainsaws etc, etc. A snipper lasts me about 3 years & my last one cost me $525. I've got 3 years out of my current blower, but it's starting to show its age a bit. It cost me $420. a 5lb roll of snipper line costs about $80 & I go thru one every 7 months or so. When you first start, you will use heaps of it though lol! I took a guy out with me last year & he used about 3 weeks worth of line B4 lunch lol! Then there is maintenance for your trailer, tyres, rego, insurance, work clothes, mobile phone bills etc, etc. I nearly forgot advertising! we don't do it at the moment (too busy) but when you start out, you will most likely need to advertise. As you can see, there are heaps of things to consider B4 start up. Lucikly there are "add backs", these are the things that the tax office let you claim as deductions that employees can't claim, like the home office, power & gas bills, rates or rent etc. They even things up a bit. Even so, unless you're doing it as a lifestyle (as we are!) rather than needing a large income, $1,000 a week isn't near enough unless you've got income coming from elsewhere!

As for cylinder mowers: The industry standard here is for a rotary mower & that's what the customers expect to pay for. Yes, cylinder mowers do a great job in dry weather (can't use 'em in the wet though!), but I don't have one single customer who would be prepared to pay extra just to get the lawn cut by one & that's exactly what I'd need to do to cover my increased costs & the extra time required to mow a lawn.

Cheers, Kevin............ :) :) :)

btoooo
10-03-2007, 12:29 PM
Hey kevin
Anyone who takes the time to give such a comprehensive and helpful reply to someone they dont even know is a GREAT person
Thanks Mate
btoooo (nik) :)

Shepparton Lawn Care
10-03-2007, 09:13 PM
Hi Btooo,
A very useful tool for someone such as yourself, would be the training manual called Fast track to success, available as part of a one off membership to Independant Lawn mowing contractors of Australia. THis manual,along with help from Dean will set you on the right path. i joined up 3 months after I had started our own business and my only regret is that I hadn't stumbled on to this website at the start. The advice on which equipment you need to start out with,the excellent prices on equipment and spares as well as help at any time is invaluable. THe key to success is having the right tools and the right people around you. There's my two bob's worth. Good Luck

kakegc
11-03-2007, 11:28 AM
Hey kevin
Anyone who takes the time to give such a comprehensive and helpful reply to someone they dont even know is a GREAT person
Thanks Mate
btoooo (nik) :)


You're welcome! thanks for the compliment nik!

I don't have that training manual that Simon mentioned, but it sounds like its just what you need!

Personally, I think if you combine something like that & you are able to network with someone who's been doing it a while in your area & is successful, then you are miles ahead. I don't think you can over state the benefits of networking in this industry. We have 6 good friends in the industry who help us out or we help them out from time to time & it works a treat! :) :) :)

We all need help occasionally & it's great to know that you've got someone to call on when the need arises. I find this forum EXCELLENT in that regard!

Cheers, Kevin............... :wave-hi:

collingwood
11-03-2007, 10:50 PM
Can't use the roller mower in the wet? NOT TRUE!! If you know how to use then you'll be sweet as!!!!!! Remember just take your time when starting out & when your finished cutting edging etc have a look at the job you've done & if you are TRUELY happy with it go to your next job. Don't rush cos it will bite you in the ass in the end. Trust me! You will get quicker as you go.And Always ask qtions if you need help!

chaplain
13-03-2007, 10:26 PM
Yep learn from the best forget the rest .

:russ:

kakegc
14-03-2007, 11:47 PM
Can't use the roller mower in the wet? NOT TRUE!! If you know how to use then you'll be sweet as!!!!!! Remember just take your time when starting out & when your finished cutting edging etc have a look at the job you've done & if you are TRUELY happy with it go to your next job. Don't rush cos it will bite you in the ass in the end. Trust me! You will get quicker as you go.And Always ask qtions if you need help!

Hi Collingwood, definitely no disrespect meant to you, but you & I are not going to agree on this! If they are OK in the wet, how come the contractors who use them in WA still lug a rotary around in their trailer during winter? Maybe over there you are expected to mow with a cylinder mower, but not over here. We simply edge, mow, blow, get paid & shoot through! Some guys blow after they edge, but that's the only real difference. Once again, no offence meant mate, but a cylinder mower is too bloody slow!

Carlos
30-03-2007, 02:34 PM
Sorry but a cylinder mower of say 28" or 30' is faster than say a Honda Buffalo. You obviously can't compare a cyclider mower to a ZTR or other ride ons of course, the later is always going to be faster.

chaplain
30-03-2007, 02:53 PM
Well said Carlos contractors in the East dont know what there missing speed relability and a cut to die for if u have never used one then u dont know what you are talking about like everything in life you get what you pay for.

haymes paints lol

collingwood
30-03-2007, 04:30 PM
WILL SAID!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!! :p ;dealers;

peterj
18-07-2007, 04:05 PM
Has anyone ever thought about using there mower as a blower. We use a Victa Mulcher Self Propelled and then use the area where the shute normally is to blow the paths etc. We have been doing this for the past 7 years with no problem. Saves the cost of a Blower too.

Peter





Hi Btoooo, there are way too many variables to



accurately predict your weekly expenses but here we go; Fuel: I pay around $100 a week, but it would depend on what vehicle you use & how far you're prepared to travel. Dump fees: it depends on where you are located? from what I've read on here, every town has a different scale of fees for dumping green waste. Vehicle & equipment maintenace: once again, it depends on what you use. If you have a new or near new Ute & trailer the costs will be low. If you have older stuff, the costs to keep it on the road will obviously go up. If you buy a Honda mower, the only maintenace that I'd expect in the first 2 years would be oil, air filters, spark plugs & maybe new wheels & a catcher depending on how much work it does. If you buy another brand, you may need to look to replace it after a year or 2. I wore out the self propelled Mechanism on a rover in a year. In that year, I also spent $$$$$$ & heaps of time keeping it running. No such issues with the Honda. Gardening supplies: once again, it depends on what you intend to do in your business, mow only or general gardening as well?. But regardless, you will require poisons & probably irrigation parts, mulch, plants, fertilisers etc, etc, etc Tools & general hardware: Spades, mattocks, loppers, pruners, all wear out (and get knocked off occasionally!), as do snippers, blowers, hedge trimmers, chainsaws etc, etc. A snipper lasts me about 3 years & my last one cost me $525. I've got 3 years out of my current blower, but it's starting to show its age a bit. It cost me $420. a 5lb roll of snipper line costs about $80 & I go thru one every 7 months or so. When you first start, you will use heaps of it though lol! I took a guy out with me last year & he used about 3 weeks worth of line B4 lunch lol! Then there is maintenance for your trailer, tyres, rego, insurance, work clothes, mobile phone bills etc, etc. I nearly forgot advertising! we don't do it at the moment (too busy) but when you start out, you will most likely need to advertise. As you can see, there are heaps of things to consider B4 start up. Lucikly there are "add backs", these are the things that the tax office let you claim as deductions that employees can't claim, like the home office, power & gas bills, rates or rent etc. They even things up a bit. Even so, unless you're doing it as a lifestyle (as we are!) rather than needing a large income, $1,000 a week isn't near enough unless you've got income coming from elsewhere!

As for cylinder mowers: The industry standard here is for a rotary mower & that's what the customers expect to pay for. Yes, cylinder mowers do a great job in dry weather (can't use 'em in the wet though!), but I don't have one single customer who would be prepared to pay extra just to get the lawn cut by one & that's exactly what I'd need to do to cover my increased costs & the extra time required to mow a lawn.

Cheers, Kevin............ :) :) :)