Forums: Discussions for entrepreneurs and small business.

what percentage of income (weekly profit) from the business should you set a side for equipment maintance: vehicles, machines, etc...thanks

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trying to make the world a better place for my son.

How long have you been in business? can you look at past records and get an idea from there? i would say a lot of this depends on the volume of business since the more you drive, print, etc the more you`ll need to have supplies ordered and it`ll increase the likely hood of a breakdown.

off the top of my head i`d say 10% of your net profit might be a good start. Even if you go higher then think of it as a savings account :)

I have to agree with "jonese".  I would think this entry in your budget would be set by past history of your business or if no past history exists, extract data from a similar business.

On another note, we should be talking about percent of gross, not net (profit). Maintenance of anything is an expense that is just part of the overall budget. It comes out before the profit is calculated. I suspect (unless this business is heavily related to equipment), that this maintenance expense is the least of your worries.

R@

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Richard Arnold · Key Concept Writers · Business Communication: The "Key" To Success· Law of Attraction Blog · Life Ain`t Brain Surgery Blog

Reducing equipment maintenance is what I do. If you would be kind enough to contact me, I`ll be more than happy to discuss your scheduled and unscheduled maintenance practices.

Albert "AL" Rich, ADR Oil Company, www.ADRoil.com, tollfree 1-866 364-5489

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Forging the Awareness of Value and Quality of AMSOIL for People and Business.

Albert Rich, ADR Oil Company, Wholesale Jobber;
Office 321-287-1981
www.ADRoil.com
Email; ALrich@adroil.com