Print

Please login or register.
1 Hour 1 Day 1 Week 1 Month Forever
Login with username, password and session length

[RYAN LOUDMUSIC JENKINS]

Tom Reid wrote on Thu, 24 December 2009 01:00

Easy, Create a business model that requires your business to do 500K a year.

I was just about to throw out a similar number.  Over the last couple years my net profits have been approx 10% give or take a little bit.  This year is a little higher due to the economy I spent less money on gear and therefore I will end up with a slightly higher profit depending upon what my total vehicle milage ends up being.  Heck, I might even get lucky and show a loss this year.

[Christian Tepfer]

Matt Vivlamore wrote on Thu, 24 December 2009 13:23

Andy Peters wrote on Wed, 23 December 2009 23:47 Are you talking that the business profit is $50K per year, or are you talking about drawing a $50k salary from the business (which must obviously gross more)? -a After all expenses are paid off, I want my bottom line at $50k. This year I brought in about $13k, spent $15k on gear and sold about $6k of the old stuff.  The last 3 months I've only been doing 1-2 shows a month because I got married in Oct and bought a house in Nov.

That brings us to the key point: how do your expenses look like?

A BE can be off with some handy tools, I have a backliner friend who carries 2 drawer cases and some other stuff around, worth a few thousands. Adding travel expenses (covered by clients or not?), an office (even at home, you would still have expenses), a car (always costing more than expected).
Other than that mixerpersons and backliners have not so much to deduct.
Over here it makes no sense to have more than 24k Euro in profits as business tax add to the income tax, cutting profit after taxes.

[(BJ) Benjamin Fisher]

Hell, I would settle for about $30k salary a year. Good topic

[Art Welter]

benjamin fisher wrote on Thu, 24 December 2009 11:55

Hell, I would settle for about $30k salary a year. Good topic

Prior to selling STS, which grossed over $800K per year, the most I ever took out in wages was about $40K per year.

“Profits” went into replacing gear.
Gear depreciation is a real expense.

Merry Christmas!

[trace knight]

-a[/quote]

After all expenses are paid off, I want my bottom line at $50k.

This year I brought in about $13k, spent $15k on gear and sold about $6k of the old stuff.  The last 3 months I've only been doing 1-2 shows a month because I got married in Oct and bought a house in Nov.[/quote]

Ok, you grosssed 13k? you spent 15k, and you sold 6k, so that leaves 4k, not a good return, but it is a return. Don't quit your day job. In order to make 50k gross income, take into consideration your self employment matching taxs too in your final figures. I would think you would need to work at least 3 jobs a week at 1k or more per gig, to  gross 50k in payroll for yourself. A good figure is 10% of your gtoss, so you really would need to make 500k gross a year, then you have a better chance.
In todays economy making 3 k a week as a small operator is really  very hard to do.

As per my payroll calculator 50k gross turns into roughly 40k take home pay, in addition to deductions, don't forget to take off another 3800 or so for self employment taxes, leaving your net take home at around 36k per year, give or take. This is based on 2 deductions, your mileage may vary as your family grows. this also is not including things like workmans comp, and other things as a self employed person would have to pay. You can see where a very large gross is needed to take this home.

tk

[Randy Gartner]

Matt,
   I've been in bussines for 21 years and don't see that kind of a profit.But I usually work by myself and bring help as needed.First piece of advice I would give you is to incorporate.That would allow you to pay yourself a lower salary thoughout the year and then take a disbursement at the end of the year that is not subject to the 15.4% Social Security tax.Also,get a good accountant who will get you all the deductions out there. Get a line of credit. Buy used. There is alot of good gear available right here on PSW's market place.I've gotten some very good deals.Network. Join a gym,the JC's,Lions Club etc where you can get to know alot of people who might have connections you can use to get jobs.
To make the bigger bucks,you need to get the bigger jobs.When you're talking about live sound,you need alot of gear to get into that market and it would be extememly difficult or impossible to do that in 2 or 3 years.You might want to try getting into the install market to help you fill in the gaps. Of course you need to have experience in that field too. Maybe you can find part time work with someone in that field to get some knowledge in that area.I'm not trying to discourage you,I'm just trying to tell you that things don't normally come to you that quickly in this bussiness. You gotta pay your dues.

[Justice C. Bigler]

Jake Scudder wrote on Thu, 24 December 2009 01:31

Evan Kirkendall wrote on Thu, 24 December 2009 00:13 I started making a lot more money when I stopping purchasing gear. Evan There is a lot of truth in this statement. I don't envy small and midsize providers trying to scratch out a living. I REALLY wouldn't want to be heading up a major shop responsible for the livlihoods of dozens of people in this climate. Freelancers can make that figure fairly easily if they have the chops but it might require starting over at the bottom.

The other option is to work as a house tech, for a regular venue (I doubt most night clubs will get you there). I'm going to be a few thousand short of that $50k mark from my house job, add in my IA labor and a couple of freelance gigs and I'll be darn close. Plus you get the whole benefits package with health insurance and retirement and a few other perks.

[Dan Brown]

Art Welter wrote on Thu, 24 December 2009 14:31

benjamin fisher wrote on Thu, 24 December 2009 11:55 Hell, I would settle for about $30k salary a year. Good topic Prior to selling STS, which grossed over $800K per year, the most I ever took out in wages was about $40K per year. “Profits” went into replacing gear. Gear depreciation is a real expense. Merry Christmas!

Grossing $800k is great but does not look as good if your expenses were $750k.

It is not easy to make money and is even harder when you are spending all the profits on new gear

db

[Art Welter]

Dan Brown wrote on Thu, 24 December 2009 14:14

Art Welter wrote on Thu, 24 December 2009 14:31 benjamin fisher wrote on Thu, 24 December 2009 11:55 Hell, I would settle for about $30k salary a year. Good topic Prior to selling STS, which grossed over $800K per year, the most I ever took out in wages was about $40K per year. “Profits” went into replacing gear. Gear depreciation is a real expense. Merry Christmas! Grossing $800k is great but does not look as good if your expenses were $750k. It is not easy to make money and is even harder when you are spending all the profits on new gear db

A rather large expense was debt service. If I would have stopped buying gear for one year, I could have broke the cycle of going in debt in the winter and paying it off in the summer.

Oh well, you live and learn   .

The good news is STS matriculated some employees that can command upwards of $1000 per day, with no equipment at all .

[Brad Ferguson]

Become very very good at one thing.