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i am now profitable

John C.

Senior Member
Joined
Jun 11, 2007
Messages
12,865
Location
Northwest
Occupation
Machinery & Equipment Appraiser
Is it gross or net. If it's gross, you don't want anyone to look at it and think that is so gross. If it is net profit, it's the ashes of the gross profit that you try to catch with your net. When you start out you always have too big of holes in your net and the ashes just pass through. As you keep getting smaller mesh for your net, the ashes keep getting smaller along with it.
 

crane operator

Senior Member
Joined
Mar 27, 2009
Messages
8,275
Location
sw missouri
Is it gross or net. If it's gross, you don't want anyone to look at it and think that is so gross. If it is net profit, it's the ashes of the gross profit that you try to catch with your net. When you start out you always have too big of holes in your net and the ashes just pass through. As you keep getting smaller mesh for your net, the ashes keep getting smaller along with it.

How did you know my business model?
 

TD24

Senior Member
Joined
Jan 3, 2011
Messages
295
Location
MS
Occupation
RETIRED (Mostly)
Is it gross or net. If it's gross, you don't want anyone to look at it and think that is so gross. If it is net profit, it's the ashes of the gross profit that you try to catch with your net. When you start out you always have too big of holes in your net and the ashes just pass through. As you keep getting smaller mesh for your net, the ashes keep getting smaller along with it.

Cut a hole in the side of that net; glue on a small funnel, divert "some" of that flow off to the side.
Keeps the net from becoming deep and bulging. Maintain a "controlled" net. Patterns are everything in
building a business.
 

John Canfield

Senior Member
Joined
Apr 27, 2009
Messages
431
Location
Texas
Occupation
Ranching
I haven't made a profit in 30 years. I have NO idea how I stay in business!;)
To my surprise, the people that do our taxes said the IRS requirement that a small business show a profit in five years was not in effect. Every year I "lose" money ranching, almost any piece of equipment I have which is a few thousand dollars or more gets deprecated down to its residual value. I'm not being devious - just taking advantage of tax law.

There's an old joke in Texas - behind every successful rancher is a wife with a good job at the county courthouse.
 

Carolina start up

Well-Known Member
Joined
Jun 28, 2020
Messages
213
Location
north Carolina
Is it gross or net. If it's gross, you don't want anyone to look at it and think that is so gross. If it is net profit, it's the ashes of the gross profit that you try to catch with your net. When you start out you always have too big of holes in your net and the ashes just pass through. As you keep getting smaller mesh for your net, the ashes keep getting smaller along with it.
net
 

CM1995

Administrator
Joined
Jan 21, 2007
Messages
13,250
Location
Alabama
Occupation
Running what I brung and taking what I win
A small business doesn't need to be profitable on paper it just needs to cover the owners salary and expenses.;) If you have write ons then you need write offs. The write offs are the key. If I can pay all my "expenses" then I really don't need a profit..

The goal is to hit zero on the taxable income line. For example, I'll drive a new truck every year or every other year before I write a check to the gov't. A F350 Platinum Tremor is an expense as I need transportation back and forth from the job sites.:D

Now I just need to make enough money to buy the truck...:rolleyes:
 
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