[Village Gleam]

" the general idea is that if you can make 20 to 25% of the turnover of each employee and build up a more valuable business than you would  be capable of doing on your own."
Thanks for that Bluez that has a more truthfull feel. There have been a few braggarts on this thread.

It's been said thought that at some point you have to take youself off the tools (i wish), so with a staff of five if you spent all the time organising etc would only match your solo income, and might also take you over the vat limit.

[bluez]

Mr. S You would match a solo turnover. It also opens up the world of the big commercial work which is very profitable but you do need the numbers of staff for it. After a bit you also develop ways of cutting costs and raising productivity and economies of scale.
 
There comes a point when you stop breaking it down into specifics for each employee and you just look at % profit same as any other business. Mc Donalds would be happy with 25% of turnover as profit. I have had months  where 35% is possible but I have nt as yet managed to achieve it consistantly. Thats the plan for 2008. By the way I haven't been on tools for a good while so that bit is true.   

[NWH]

Mr solubilty your absolutley right with what you say about the tax issue,if you matched your income with having staff therefore come off the tools you would be earning way over the VAT limit,unless your prices were to go up 17.5% your 25% profit would become 7.5%.Yes you wouldn`t be working but it would still be a headache organising the work and covering holidays and sick days,don`t forget the day to day running costs of the business ie vans equipment etc.Without it being properly thought through you could end up losing money from the start,when employing you must have money in the bank.