Whitewalker
Member
So forgive my ignorance, lots of companies seem to run with their assets and liability in tandem with each other . Why is this ?
Turnover vanity profit sanity….what a load of tosh
- Thread starter B R C
- Start date
You can be both.
i.e. low cost system, making enough profit to increase number of operations, as per plenty of multiple-site dairy units.
Sorry I was replying to a post about the directors getting money out of the company as a loan to them personally, in an attempt to avoid tax, they don't avoid the tax HMRC gets it from the company and at a higher rate than the director would pay taking the cash as a dividend.
If a young'un comes to me for wisdom in business, i warn them to factor in their time.
Time is money.
If farming per se isn't profitable, doing more of it simply loses more.
I've always had outside business interests, and farm as simply as possible to occupy the land resource .....any more would simply take me away from better paying work.
That said, you go-getters should get right on. Borrow, expand, show us how it's done.
I say this because I often feed on metaphoric corpses on the hard shoulder when their wheel has come off.
- Location
- Aberdeenshire
What's this profit you guys are speaking of?
Been making a loss for decades
I'm a bit like the big tech firms in that way
Been making a loss for decades
I'm a bit like the big tech firms in that way
- Location
- Owaka, New Zealand
This depends on the game we choose to play, more than how well we play .So what sort of % profit on turnover is considered good? We make about 30%. £30k profit on £100k turnover on average.
We could do better but I admit I’ve wasted money on machinery. I’m trying to rectify that now by cutting machinery fleet to bare minimum. SFI will replace BPS and will continue to be half of the profit. I say average. This past year and coming year will be below average.
As said above by @teslacoils a small farm, however well run is now a nice place to live and a bit of pocket money. We’ve simply been outscaled on all fronts and left behind by the huge disparity between commodity price inflation (or lack of it) and cost of living but we are still in the game, part time. C’est la vie.
With the dairy grazing + low cost model the profit ratio was fantastic even for a smallholding. 85% is doable
Could have "farmed it", spent bucketloads of money and the gross revenue would have been the same or less.
Net profit easily in the negative-to-breaking-even part of the scale, and for what?
To ship fertility off for no thanks? Add to the GDP ?
No, thanks!
Again on the new place it's much the same - cover the few fixed costs and persue the things with enough reward for the risks taken, like winter keep. Not much risk, high value activity
Whitewalker
Member
I understand that, was wondering the question why a lot of companies run their liability and assets similar, the glaring obvious is so if the company goes belly up the director goes out on full pockets and the minions pick up the tab ? Or have I over simplified it
Yes that's not an uncommon situation, it's a legal but very unethical way of directors getting rich. It's the poor sods they take down with them that I feel sorry for, quite often small self employed traders that can't afford to lose the money
- Location
- Bay of Plenty NZ
You can have a £1m turnover with a $300,000 profit, there’s no chance of having a £300k profit from a £100k turnover.
- Location
- Bay of Plenty NZ
Buying metal to reduce tax just doesn’t make sense, spending $100k to save $30k isn’t viable.
- Location
- Bay of Plenty NZ
It wasn’t the turnover that resulted in BMCs demise, it was bad management.
- Location
- Bay of Plenty NZ
If you’re employing staff and want to attract good ones new kit helps ( who wants to drive 25 year old outdated machinery? ) we replace the main kit every 3 years.
glasshouse
Member
- Location
- lothians
Staff? Whats that?
- Location
- Bay of Plenty NZ
People you employ to work with you.
Hilly
Member
- Location
- Scottish Borders.
Luxury item for the wealthy
Nearly
Member
- Location
- North of York
Like family but take more £ home than you on a Friday.
- Location
- Darlington
No staff no cry.
Bossfarmer
Member
- Location
- between Perth and Inverness
youve to bring in p & k in in a lorry to replace that straw, your kidding yourself if u think otherwiseYou mean something like ‘mixed’ farming?Now there’s a revolutionary idea.
Apart from the fact that you say the straw is ‘free’. If you can stick it on a lorry for £100/t then that is the value into your livestock enterprise. You’re kidding yourself otherwise.
then theres the benefits to soil fertility, OM, mycorrizal fungi from the muck, hard to put a price on
You could argue that this is when "Turnover is vanity".
- Location
- Bay of Plenty NZ
Should pay family the same.