I’m setting the goal of paying myself $75,000 in 2017. Once profit first is successfully implemented, you can then precisely calculate exactly how to earn the pay you want.
My TAPs are:
Profit: 20% ($30,000)
Owner’s Pay: 50%. ($75,000)
Tax: 15% ($22,500)
Exp: 15% ($22,500)
For this to happen, I now know that the business needs to gross $150,000. (in order to pay me 50%, $75,000)
From there, I know exactly how much I need to earn each month and each day!
Off Season: 4 months, December-March.
On Season: 8 months, April-November
$/month: $150,000/8mos = $18,750/mo
Number of days I want to work per month:
- (52wks/year) / (12mo/yr) * (8 working months) = 34.5 working weeks
- I want to work 2days/wk so… (2 days/wk) * (34.5 working weeks) = (69 days) / (8 mos) = 8.6 days/mo
How much to earch each day:
- So I need to earn ($18,750/month) / (8.6 days/mo) $2,180/day
Goal: 3 jobs/day, $727/job.
Number of jobs I need per year.
- Minimum target jobs/year: (3 Jobs) * (69 days) = 207 jobs.
So how do I make this much money as easy as possible? Pressure washing and Roof washing - targeted advertising with SendJim and Facebook Ads.
What about windows & gutters? They’ll be inevitable and gutters are still very profitable. Window cleaning is by far the lowest $/hour job that requires the highest skill, but I have a large window cleaning customer base. So I’ll hire someone just for this work. If I meet the goals of my house and roof washing, windows and gutters will just be a bonus.
Mike Michalowicz’s other books are a gold mine also - “The Toilet Paper Entrepreneur” and “The Pumpkin Plan”