This has been very revealing with several good replies, which is surprising because the opening question was pants.
The qouted peice above is indeed food for thought, not for profit at first but to make life easier and pave the way for later.
What I really wanted to ask about though was something dave mentioned (can you believe some of the people who argued the profit and loss expenses?I can see why they've got now't.) Anyway the little gold nugget that Dave mentioned was turnover to man ratio.
So what are examples of, good, bad, and average turnover to man ratio's?
I understand there will be differences, but what ratios would be acceptable in what circumstances and why?
If you put 1 man out on his own if he`s an experienced WFpoler he should be doing 1k a week + easily,even taking weather into account etc you should expect that sort of return from him.This was what i was saying about the amount of work you`ll need even for 1 van,i would expect to make £1600-£1800 a month from him.
200 x 5 days x 4 weekly = 4000 quid
take of his 2400
take of 12.5% for employers national insurance £300
employers insurance £50
van and setup lease 220
diesel a very reserved price at 200
van insurance say 30 - 50 a month
van tax say 15 a month
(not even counting repairs to system and wear and tear on van)
your costs will come in at a minumum of £3215 giving you a minimum profit of £785
i think you need to re work your sums NWH as i wouldn't even entertain a profit margin like that for 1 full van!!
where did you get your profit margin of 1600 - 1800?
?
it sounds like you've never employed before given them figures?