The best way to get an idea of if you can make your business into a full time business is to run some pro-forma P & L's.
First determine the personal income you need to earn in order to meet all your living expenses and money needed for you and your family if you have one to live on.
Then do some P & L pro-forma's for the business to see how much gross revenue you need to generate in order to net the amount of money you need in personal income to meet your obligations.
For example, if you need to generate $5000 a month in personal NET income AFTER taxes, you probably need $ 6000 in gross income per month.
How much gross revenue would a business need to generate in order to let you take home $ 6000, before taxes, every month?
Let's assume you could NET a 20% NET profit from the business after all your expenses - Food cost, operating expenses, taxes, Etc. You would need to generate $360,000. in annual gross revenue to net $72000 in annual NET revenue or $6000 a month net income from the business to meet your personal income needs.
How much product would you need to sell in order to generate $360,000 in sales?
If your average ticket/sale is $5.00, you would need 6000 transactions a month to generate the monthly gross revenue of $30K that would give you the income you would need to meet your personal needs net income requirement.
Another way to look at it is to say you'll net a Buck on every $5 sale you make. (That's 20%)
These are just hypothetical numbers. You'd need to sit down and actually cost out everything from a personal as well as a business side in order to get a better picture. This exercise is just to outline how to run the numbers. Unless you can generate the numbers, don't quit your day job.
post edited by Foodbme - 2014/02/04 02:31:37