Just sent off invoice number 1000

[Stanios]

Reached what feels like first big milestone, at least one I can see. For most part during the three years of trading I've not had a clue how much money Im taking home which is still the case but from day one I've been using the same online invoicing platform and made a decision to start my invoices from 0 and watch them tally up. Just gone into fourth year of trading and sent off invoice number 1000 now reflecting a bit on whats gone right and whats gone wrong. Biggest wake up call has been getting an apprentice who is now got his van, a young man who is eager to earn. Made me realise how little I charged, barely enough to pay him and run the van etc to make the whole thing worth the hassle of it. Still much to learn.

Have you guys had these kind of milestone/ taking stock of things moments ?

 

[centralheatking]

Reached what feels like first big milestone, at least one I can see. For most part during the three years of trading I've not had a clue how much money Im taking home which is still the case but from day one I've been using the same online invoicing platform and made a decision to start my invoices from 0 and watch them tally up. Just gone into fourth year of trading and sent off invoice number 1000 now reflecting a bit on whats gone right and whats gone wrong. Biggest wake up call has been getting an apprentice who is now got his van, a young man who is eager to earn. Made me realise how little I charged, barely enough to pay him and run the van etc to make the whole thing worth the hassle of it. Still much to learn.

Have you guys had these kind of milestone/ taking stock of things moments ?

Well done Stanios, you are building your business it’s not easy as everybody would be at it. Yes sometimes your employees will earn more than you and it hurts. In a quiet moment take time to look at your turnover in total and compare that with your profit...it’s a good exercise especially if you do over a year by year basis ....stick it on a graph and see what it looks like. Onwards and Upwards Chking

 

[Stanios]

Well done Stanios, you are building your business it’s not easy as everybody would be at it. Yes sometimes your employees will earn more than you and it hurts. In a quiet moment take time to look at your turnover in total and compare that with your profit...it’s a good exercise especially if you do over a year by year basis ..stick it on a graph and see what it looks like. Onwards and Upwards Chking

Cheers! Agreed, wish I kept a closer eye on the turnover, vat threshold looming and all..

 

[mfgs]

Congrats on keeping the business going and growing it. It is a real eye opener once you start having employees etc. General rule of thumb is add 50% to their wages and that's the overall cost of the employee to the business. Then anything after that is your profit. The amount of time and effort which goes into keeping them busy and earning you money is ridiculous so you need to be making a good profit on them to make it worthwhile for you.
The one bit of advice I would give you is, get a good accountant. You cannot run a business and not know what profit you are making. My accountant gives me monthly accounts, updating on profit/loss etc. What bills are due. Its the best money I spend. It saves me time, hassle and I know exactly what profit I am making and if I am not it helps show what I need to adjust to rectify it.

 

[Stanios]

Congrats on keeping the business going and growing it. It is a real eye opener once you start having employees etc. General rule of thumb is add 50% to their wages and that's the overall cost of the employee to the business. Then anything after that is your profit. The amount of time and effort which goes into keeping them busy and earning you money is ridiculous so you need to be making a good profit on them to make it worthwhile for you.
The one bit of advice I would give you is, get a good accountant. You cannot run a business and not know what profit you are making. My accountant gives me monthly accounts, updating on profit/loss etc. What bills are due. Its the best money I spend. It saves me time, hassle and I know exactly what profit I am making and if I am not it helps show what I need to adjust to rectify it.

Thanks, 50% on top for costs sounds about right for me (no accountant, no office, no advertising) what baffles me is how bigger companies can afford it all!

 

[JCplumb]

I started my invoice numbers at about 700, didn't want to look like a noob

 

[oz-plumber]

Thanks, 50% on top for costs sounds about right for me (no accountant, no office, no advertising) what baffles me is how bigger companies can afford it all!

Simple - They charge for it!!!
Also bigger companies pay much less for their materials and hence can be competitive with smaller contractors.
Remember the smaller contractor supplies the Merchants with their greatest profit margins.

 

[Jim Goodenough]

Congrats on keeping the business going and growing it. It is a real eye opener once you start having employees etc. General rule of thumb is add 50% to their wages and that's the overall cost of the employee to the business. Then anything after that is your profit. The amount of time and effort which goes into keeping them busy and earning you money is ridiculous so you need to be making a good profit on them to make it worthwhile for you.
The one bit of advice I would give you is, get a good accountant. You cannot run a business and not know what profit you are making. My accountant gives me monthly accounts, updating on profit/loss etc. What bills are due. Its the best money I spend. It saves me time, hassle and I know exactly what profit I am making and if I am not it helps show what I need to adjust to rectify it.

Excellent advice IMHO.
If you're providing an honest, reliable, professional service the general public will pay for it.
Don't be afraid to put your prices up....
Go for it!