How much do you put aside for your business?

[Tommo]

Hi geeks,

Hope you can help. I'm just looking for a bit of advice really. At the moment I'm only working evenings so am taking between £100-£200 in cash a week. That's fine as this is a part time thing at the moment for a bit of extra cash.
I was wondering though, how much of that do you put aside for your business and how much do you spend? A friend of mine told me she puts 50% away for business and keeps the rest. At first I thought that sounded great but I'm not actually getting much money at the end of it. And although I only work evenings, I work damn hard, sometimes getting in after midnight!

Thanks

 

[ChicUnique]

I only spend what I need to for non business stuff, and save the rest for business, no percentages. Like in a 5 week month I might have to buy some shopping from it.
I don't see that muh of it, being honest the majority of mine goes back into my business, which from what I read is the norm, it could be 2+ years until you start making a profit.

You would have to remember to keep money aside for tax once your earning over the threshold, and depending on how you pay your national insurance you may have to remember to save some aside for that. x

 

[GlamourEyes11]

I have only been mobile for a couple of months and also only work evenings, but at the moment all of mine stays in the business until I break even, then I will start taking an hourly wage (or just money when i need it) and the rest will remain in the business xxx

 

[MaryB]

I have been working self employed for almost 2 years, so far I've only taken small amounts of money out of the business twice, other than that it has all went back in. I work over 40 hours a week (late nights included) but I understood before I started that this would be the case. There is times when I wonder is it worth it but I keep going because if I don't then I'll have worked for 2 years for nothing I have to believe it will pay off or I'd close the doors many a day.

 

[Tommo]

Thanks guys. When you say it goes back into the business, is this to but more products/fuel etc etc or are you paying off loans for your business?
Sorry to be so nosy! Basically my husband won a bit of money so I did my training and bought a bit of kit to start out and we are just writing that money off. So I have started from zero really if you get me. I'm not treating it like that money for training has put me in the minus as it was 'free' money anyway if you get me.

Really, I should just do what works for me shouldn't I lol! But it's just really interesting to know what others do. I forget there are no set rules!

 

[PixieBeauty]

I'm also nosey and would like to know when people say they are not taking any money out do they mean you are not taking a wage? As wage & profit are different but I'd like to know if people are literally ploughing everything back in, or are their wages at least coming out.

I don't care about profit after a wage, I'd be grateful of a tenner right now! Oh dear!! Xx

 

[GlamourEyes11]

I'm also nosey and would like to know when people say they are not taking any money out do they mean you are not taking a wage? As wage & profit are different but I'd like to know if people are literally ploughing everything back in, or are their wages at least coming out.

I don't care about profit after a wage, I'd be grateful of a tenner right now! Oh dear!! Xx

I don't take a wage at all right now, all of my money goes back in to the business so I can buy the best products for my clients

Xxx

 

[GlamourEyes11]

Thanks guys. When you say it goes back into the business, is this to but more products/fuel etc etc or are you paying off loans for your business?
Sorry to be so nosy! Basically my husband won a bit of money so I did my training and bought a bit of kit to start out and we are just writing that money off. So I have started from zero really if you get me. I'm not treating it like that money for training has put me in the minus as it was 'free' money anyway if you get me.

Really, I should just do what works for me shouldn't I lol! But it's just really interesting to know what others do. I forget there are no set rules!

Lucky you in that case leave some money aside for products etc and maybe future training? And then do whatever you like with the rest xxx

 

[PixieBeauty]

I don't take a wage at all right now, all of my money goes back in to the business so I can buy the best products for my clients

Xxx

Same here. Going for a couple of months, money sat in a pot. Every time I look & think ooh that cash is growing, I go and spend it! *Damn additives*

 

[siana]

I pay all cheques into my business account and keep the cash as a wage. I make sure I always have a minimum in my business account to cover costs and products and when the business acccount has plenty in I also withdraw some of the excess for wages too. I'm always careful towards self assessment time to make sure I have plenty to pay my tax etc. I tend to get a good spread of cheques v cash so it works well for me. I am a home based business btw!

 

[Tommo]

Lucky you in that case leave some money aside for products etc and maybe future training? And then do whatever you like with the rest xxx

Thank you I do put money aside for exactly that. Replacing products and future training

 

[Tommo]

I pay all cheques into my business account and keep the cash as a wage. I make sure I always have a minimum in my business account to cover costs and products and when the business acccount has plenty in I also withdraw some of the excess for wages too. I'm always careful towards self assessment time to make sure I have plenty to pay my tax etc. I tend to get a good spread of cheques v cash so it works well for me. I am a home based business btw!

That sounds like it works well. You have a good system going on there. It's all very tempting at the beginning and I think because we put so much money into the business, once the money comes in its natural to think it needs to go back into the business!
Not that I get to go on shopping sprees or anything! Im more on about paying bills.... :-/ lol

 

[shazzawilson]

Thanks guys. When you say it goes back into the business, is this to but more products/fuel etc etc or are you paying off loans for your business?
Sorry to be so nosy! Basically my husband won a bit of money so I did my training and bought a bit of kit to start out and we are just writing that money off. So I have started from zero really if you get me. I'm not treating it like that money for training has put me in the minus as it was 'free' money anyway if you get me.

Really, I should just do what works for me shouldn't I lol! But it's just really interesting to know what others do. I forget there are no set rules!

Just to say you should off set the amount that you've invested in yourself against the business as it makes tax sense, so if you are earning above the threshold then this can be offset so less tax paid.

 

[Emily Case]

Right now, I don't put anything aside.

My earnings go into my purse, then I buy what I need for myself (toiletries and essentials) before putting the rest into my bank. I then buy only the products I'm running out of... And things that catch my eye!

I started off with just acrylics. Then I added mani/pedi. In January I invested in Shellac. 2 weeks ago I did a gel course and bought the products, on a whim because I had a few hundred pounds and thought it could be put to good use. I will earn from these things in the future so I think it's 'smart spending' (or am I just kidding myself?! )

The last bits of money get left in my account or in a pot for if I have a rough couple of weeks and haven't earned enough to keep the business afloat.

Let's face it, if I don't have the products, I can't do the work and earn the money!!

xxx

 

[bootiful]

I understand the need to plough money into the business, but i for one am not going to spend time away from my kids working hard to build my business, if i cant spend the money!!

I tend to put all my earnings in a separate purse and then at the end of the month i decide what to to do with it - i make sure i have all the stock/product etc that i need and then i put some in the bank and keep some for myself!

i keep a spredsheet of everything including milage, products, earnings etc so i know how much profit i'm making.