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Operating Expenses |
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Danielw 
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Joined: 14/July/2008 Status: Offline Points: 7 |
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 Topic: Operating ExpensesPosted: 06/November/2008 at 1:09pm |
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How does someone just starting in the carpet cleaning business determine his operating costs down to the square ft? I can see how to figure out the cost of cleaning supplies, but how would you factor in insurance, advertising etc..
Dan
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Soil Lint Green
Carpet Cleaning Specialist 
Joined: 30/December/2007 Location: Oregon Status: Offline Points: 551 |
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Posted: 06/November/2008 at 1:28pm |
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You won't know until you have a few months under your belt. In the meanwhile consider these costs to be part of your investment. That is what primes the engine. Once you are being fueled by the jobs you are doing and the jobs are paying for these expenses, then you can divide the expenses by the total square feet over a specified times to determine what your costs will be and hopefully as you get busier these costs drop.
For right now it is cash outlay. In 3 months you should have a good start in determining how much each square foot needs to bear in general operating expenses such as insurance and advertising. |
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It's ORY GUN, not OR A GONE. Learn to talk.
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duckcountry
Master Carpet Cleaner 
Joined: 29/October/2005 Location: USA Status: Offline Points: 1082 |
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Posted: 06/November/2008 at 2:34pm |
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You can look back and see what those expenses were. Divide costs by square footage cleaned say over a month. Financials give you a snapshot. If you are doing a prelim for a business plan and you are in the US, call SCORE and let their mentors walk you through your business plan. It is part of the SBA.
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Are you in a high paying business or are you just a self employed low paid grunt who thinks this business provides dignity?
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doug
King of the One Liners 
Just My opinion Joined: 31/January/2004 Status: Offline Points: 32711 |
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Posted: 08/November/2008 at 9:30am |
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In Ontario we have no expenses it is all profit and will be taxed accordingly
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Just My opinion
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Soil Lint Green
Carpet Cleaning Specialist
Joined: 30/December/2007 Location: Oregon Status: Offline Points: 551 |
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Posted: 08/November/2008 at 11:27am |
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Do you mean no ALLOWABLE expenses, doug?
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cmaster
IICRC Instigator 
Joined: 29/January/2004 Location: Canada Status: Offline Points: 29693 |
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Posted: 08/November/2008 at 1:07pm |
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It's only money. Let the government have it. They know how to spend it
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The STD Meter |
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Steaminpile
Master Carpet Cleaner
Joined: 04/February/2004 Location: Canada Status: Offline Points: 1155 |
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Posted: 08/November/2008 at 8:14pm |
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when doing up a business plan my first time around,,,,,,,,I figured it out by the hour,,,,,I found it easier than trying to figure it out by the sq.ft.
I was working for a CC company just prior to going on my own so it was a little easier
A good business plan program will pretty much break it down for you all you gotta do is punch in the numbers........but all you can do is guess on some of the usages,,,,,,,ie:fuel,chems etc.
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A.K.A.
Andy |
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