So you want to open a truck manufacturing business?
Well, any business for that matter. It always cracks me up when people look at the cost of something and say that business must be making SO much money. I also feel sorry for every small business I see open up in a cheesy location and my first thought is, did they realy think this through because they will be gone in the first year. Here are some line items to consider when planning your camper manufacturing business.
Realistically, how much income will I bring in. Let's say 100,000/month
Now subtract:
Cost of goods
Accounting and leagal
Computer expense
Liabilty insurane
Licenses and taxes (not income tax)
Payroll service
Property tax
Rent or Mortgage payment
Advertising Expense
Credit Card expense, unless you just take cash or checks.
Maintenance and repairs of your facility, stuff breaks
Office supplies
Operating Supplies, toiliet paper, glue, soap, rags, yada yada.
WAGES to your employees.. Minimum wage is going up in CA..
Payroll tax expense, while you pay fica, so does the employer.
Small parts
Small tools, large ones can be depreciated.
Telephone
Utilities
Workers Comp insurance
Business Loan(ammortization) and Interest
Total Expenses 90,000
Income $100,000
Expenses $90,000
Net Profit $10,000
But wait, that $10,000 is not yours. Depending on how your business is setup, you still have to pay Income Tax to the Fed and State. Let's take 30% as an axample.
Cash in my pocket, $7,000 for $100,000 in sales. These are just semi random numbers and the categories may be more or less for your camper manufacturing business. If you are considering opening a camper manufacturing business, please think of every penny in your expenses. It's not as simple as rent, labor, and cost of goods. Please consider realistic expectations when you are planning your business. Just ask JNET I think it is that has his thread going of building his own camper, it will be top quality and a top price!
I am heading out in the camper this afternoon and will not be posting till Monday again.
Realistically, how much income will I bring in. Let's say 100,000/month
Now subtract:
Cost of goods
Accounting and leagal
Computer expense
Liabilty insurane
Licenses and taxes (not income tax)
Payroll service
Property tax
Rent or Mortgage payment
Advertising Expense
Credit Card expense, unless you just take cash or checks.
Maintenance and repairs of your facility, stuff breaks
Office supplies
Operating Supplies, toiliet paper, glue, soap, rags, yada yada.
WAGES to your employees.. Minimum wage is going up in CA..
Payroll tax expense, while you pay fica, so does the employer.
Small parts
Small tools, large ones can be depreciated.
Telephone
Utilities
Workers Comp insurance
Business Loan(ammortization) and Interest
Total Expenses 90,000
Income $100,000
Expenses $90,000
Net Profit $10,000
But wait, that $10,000 is not yours. Depending on how your business is setup, you still have to pay Income Tax to the Fed and State. Let's take 30% as an axample.
Cash in my pocket, $7,000 for $100,000 in sales. These are just semi random numbers and the categories may be more or less for your camper manufacturing business. If you are considering opening a camper manufacturing business, please think of every penny in your expenses. It's not as simple as rent, labor, and cost of goods. Please consider realistic expectations when you are planning your business. Just ask JNET I think it is that has his thread going of building his own camper, it will be top quality and a top price!
I am heading out in the camper this afternoon and will not be posting till Monday again.
