How much profit makes it worth it?

[phatzilla]

I'd say if it doesnt cause any huge headaches then keep it up, try to scale as much as you can. As soon as it starts getting annoying is when you delegate or gtfo.

 

[newbiebewbie]

I'm running a transportation business we started in July. So far we've had 33k pass through our hands and only kept 4k of it. So roughy 1k a month on 2 trucks.

At what point does a business become worth it? What metric do you use. I'm spending 2k a week to bring in 2300. Is that worth it?

I am not known with the business your doing, but let me share my thought.

Hence me asking the question. Is it really a horrible ROI with only 1 hour of work per week.





Lol. Why do you think it's only $300 from $2300?

Sorry. Didn't mean to be smartass. Out of 33k 29k is expenses 4K is profit.

1000€ / 4 hours (each month) = 250€ each hour
That's good. Unless something else pays more as 250€ a hour and you
cannot lose the 1 hour a week.

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What are the risks and/or how high are the investments risks?

Situation 1: you lose the 29k because of risk factor X, which means you need to make 9x4k(also 9x29k(261k) investments/risks) to recover the damage with a little profit. Doable? Maybe. If the risk chance would be far beneath 11%. Or you must have enough balance to take the hits in case of harder times.

But then again, i don't see how you can lose 29k instantly. A bit far exaggerated.

Situation 2: One truck got a little damage and needs to be repaired and your expenses would be 33100€, you would make a loss of a merely 100€.
So yeah, calculate your risk/expenses in chance and amount. And weight it with the profits. Are there ways to lower expenses/increase earnings?

(i calculate it in worst/best/average times, i do not know how consistent the profit/expenses are)

It sounds like you are saying it is worth it. So it's different for every person then. I have a full time job making 6 figures a year and am trying to start a side business and I'm trying to decide if I should keep with this or move on.



I agree. It's not bad. But losing a penny and finding a nickel is a 400% return but only 4 cents. Numbers matter too not just the ROi. Is $300 a week good or should I move on?

I've read somewhere on the thread you're pretty occupied.Well if this income is stable, it could be interesting much money for low time(time = money, so the scale suits good) could fit then to your situation.

Maybe it is interesting for you to invest. With a good nose for business, you can get also a good semi-passive income or real estate?

I know something to invest to

Can't you squeeze any more value from your trucks? Put some ads on them or whatever.

This is a pretty nice idea.

 

[justbrowsing1]

Amazon themselves only have a net profit of around 2%, most 'real' businesses profit is way below 20%. Just get more trucks and try to squeeze a little more profit. Advertising on the trucks is a good idea like someone suggested

 

[thescrrr]

If you dont work your ass off, I wouldnt ditch it until it generates revenue. I'd rather try to find ways to cut back on expenses, and increase price a bit. But what do I know? Never had an own business besides IM.

 

[newbiebewbie]

Amazon themselves only have a net profit of around 2%, most 'real' businesses profit is way below 20%. Just get more trucks and try to squeeze a little more profit. Advertising on the trucks is a good idea like someone suggested

Volume > Marge

 

[IotaInsanity]

I'd say if it doesnt cause any huge headaches then keep it up, try to scale as much as you can. As soon as it starts getting annoying is when you delegate or gtfo.

yeah thas what im thinking/. It's not a huge headache or alot of work, but i mean, only keeping $300 of $2300 makes me kind of sad.

Amazon themselves only have a net profit of around 2%, most 'real' businesses profit is way below 20%. Just get more trucks and try to squeeze a little more profit. Advertising on the trucks is a good idea like someone suggested

Advertising on the trucks is a maybe, but I wouldn't know where to start.

If you dont work your ass off, I wouldnt ditch it until it generates revenue. I'd rather try to find ways to cut back on expenses, and increase price a bit. But what do I know? Never had an own business besides IM.

Can't really increase price. Expenses are basically gas and insurance and such. Not much to cut.

 

[JV1999]

I wouldn't keep this up. Anything can go wrong. It reminds me of like crypto, when you go all in on one coin just to make 10%, but the risk of losing 50% is also apparent since it's an altcoin that doesn't seem strong.

I mean if ur truck breaks, then that's it. That's your profit for one month. Idk. Doesn't sound hot man.

But if the risk isn't great, then making $300 - $4,000 from one hour of work per week is very good. Anyone who tells you otherwise just isn't realizing that u get $300 for 1 hr . Even if it's just 300$, u still made it in only 1 hr and u get to work on something else the rest of the week.

 

[BassTrackerBoats]

yeah thas what im thinking/. It's not a huge headache or alot of work, but i mean, only keeping $300 of $2300 makes me kind of sad.



Advertising on the trucks is a maybe, but I wouldn't know where to start.



Can't really increase price. Expenses are basically gas and insurance and such. Not much to cut.

Advertising on the trucks is a real possibility and pretty common in the industry if the person for whom you are hauling allows it.

There are a couple of approaches for that depending on your service area. If you are local hit up those that advertise.... car dealers, real estate agencies, etc.

In the advertising world there is a saying, "Those that advertise, advertise".

Those that advertise will advertise more if they think they can get a bnang for thier buck.

If you have room on your trucks and can service others at the same time (again, not all companies for whom you haul will allow this but many could care less) hit up some other trucking companies that need an LTL service like you are offering that service the same area. Your expenses will go up some but your revenue should go up significantly more.