How much is enough...

[hbwise]

I have a question for all you full time pros. What do you consider enough revenue to support a full time shop? I realize that the answer depends on many variables, including various expenses. In the past I have used figures of around $350,000 per employee per year as a rule of thumb. My question is what kind of revenue should I look at before I consider going full time? Also, what kind of margins, both gross and net, do you consider adequate for the business. Again, in the past I have figured I needed 100% of my cost of goods sold to net out at about 5%, but this was a manufacturing company, not a services company. I would think that if you are careful with the expenses, one should be able to look at about 20% net. Anyway, I'm not looking for specifics, but I think a general discussion would be helpful.

[hbwise]

Nobody's willing to talk numbers? I'm not asking to see your P&L and balance sheet. It is just that I drive around and see some of these studios and I can't make the numbers add up. Are they shooting a $4000 wedding every week or what?

[bondarnes]

To have a successful business in a commercial location you would need to gross in excess of $250K. If you can keep your COGS under 30% and your overhead isn't out of sight you could probably pay yourself $60K. When you start thinking about hiring an employee you will need to bring in at least another $100K in additional sales to cover a full time employee.

[hbwise]

Don,

Thanks for the response. This is in line with what I have been thinking and my experience elsewhere. Just $240K to go before I can quit the day job!!!