Posted by SpinClose/MI on 1/13/11 8:08am
Msg #368364
profit margin for this business
Anyone like to weigh in on what would be an "average profit margin" in this business?
Been looking at year end numbers while working on taxes and would be interested in what others have come up with since our business doesn't seem to show up when I do a general search.
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Reply by Linda Snell on 1/13/11 8:21am
Msg #368365
There is no meaningful "average". If you found out that the "average" cab driver earned 50% more than you earn would you change jobs?
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Reply by MW/VA on 1/13/11 8:52am
Msg #368367
I'm not big on percentages. I don't think they give an accurate picture. Only you will know if you're making enough at this endeavor to make it worth your efforts. Frankly, I want my profit to be as low as possible for tax purposes. 
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Reply by James Dawson on 1/13/11 9:11am
Msg #368369
Re: profit margin for this business - Ditto
I will second that!
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Reply by Shoshana/AZ on 1/13/11 9:24am
Msg #368372
That may not be a good idea because it also affects Social Secuirty.
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Reply by Larry/IL on 1/13/11 9:37am
Msg #368378
Social Security.....????
I have to side with James on this one. I believe it is considerably more beneficial to show less profit, pay less taxes and forget about Social Security. Considering the the doubts about Social Security, the fact that it not, (and never was intended to be) enough to live on, and considering the people running and abusing it, one could do much better by opening and contributing to a Roth IRA. When you die your heirs will get whats left in your IRA, the government will keep the rest of YOUR money that was put into Social Security.
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Reply by SpinClose/MI on 1/13/11 9:55am
Msg #368389
Re:Thanks for the comments n/m
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Reply by Linda_H/FL on 1/13/11 9:56am
Msg #368391
Need to keep in mind Larry...it's not just retirement
Social Security contributions and eligibility is a major factor in both Medicare coverage and disability benefits. Find posts here by Marian/CA as a prime example of the disability aspect - she's been through it, as I'm sure have others but she's documented her journey through that.
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Reply by Larry/IL on 1/13/11 10:09am
Msg #368396
Can we add the Gov. to S/C before it's too late?
I can appreciate the point you bring up, but unless you believe our wonderful government has the capacity and interest to do a better job at taking care of you, (than you taking care of you), with some good focus and planning you will be much better off planning for yourself. Now granted if one has not had the discipline, focus or started too late, then indeed the the minimal government programs may be one's only option. The government has showed time and time again that their own interest come way before ours. I would be curious if they were in S/C what their rating might be.
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