Business numbers 101

Hello guys, everyone know how important it is to know your numbers. Keeping your business healthy and growing is directly related to knowing your numbers. However know one ever really explains what there number / percentages should be. Now I know everyone’s will be different but what’s an average/ ideal scenario. So I was hoping someone could share there experiences / numbers. For example at the end of the year let’s say you made 100,000 total revenue ( 100,000 is just an easy number) so if you start doing the math you have 100% total revenue. What percentage should your marketing budget be?, what percentage should your overhead be? What percentage should your employees cost? What percentage should your insurance and WC insurance cost? And last what percentage should company profits and owners salary be? Along with taxes etc So let’s break this down from 100% to 0%

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This is really important question. There is a must read book about this very thing - Profit First by Mike Michalowitz. Definitely a great read, there are also a few posts in this forum about the book and its concepts.

Im working on my percentages currently which are:

40% Owners Pay
10% Op Expenses
25% Marketing
5% Winter Savings
15% Taxes
5% Profit

Im not final with the numbers yet but thats the rough idea. Each category has its own bank account so things aren’t mixed between and every two weeks I split my revenue totals based on those percentages. I dont have employees but I’ve seen 30% as a common number for those operating with them. Im pretty heavy on the marketing percentage I know but I want a growth year to set myself up for an employee next year in my third year Im thinking.

Healthy financials and cost control is so important for so many reasons but namely to let the business work for you and not the other way around. My expenses last year were out of control which I realized once I read Profit First. Too easy to buy tools every two weeks because I “needed them” haha!


I did a simple video on YouTube about a month ago if anyone is interested. I used my pressure washing business but numbers are similar. Hope this is helpful to someone. Feedback also appreciated.


that’s an awesome spreadsheet.

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Thank you @DelirousDungo