This is the area with which I struggle most--wondering if we're doing "ok" compared to the industry.
I am a part-owner (60/40) of a 2-man, 2-bay shop currently in our 2nd calendar year of existance. 1 fairly amazing tech (albeit with some personal life pecidillos that I KNOW are costing us money) and myself, running the front as SA, CEO, CFO, COO, et al. For last fiscal (calendar) year, we had a gross income of right at $204,000.00, Cost of Goods Sold (inventory, parts purchased, sublet expenses) of about $61,600.00, for a Gross Profit of about $142,400.00, total other expenses (rent, utilities, advertising, hourly payroll, etc., etc.) of $71,400.00 for a Net Profit of $71,000.00 which we split 60/40, more or less. According to my math, this is about 34% of Gross Income, or almost 50% of Gross Profit. If the "20-30% Gold Standard" quoted is on Gross Income, we seem to be doing pretty well, if it's based on Gross Profit, we're doing amazingly well. Most recently, I come from the background of the manager (Glorified SA) of a major multi-national franchisee which I took from a best year of about $730,000 to over $1million in my first year. I was earning about 7% of Gross or about $7k/month--more money than I knew with what to do to just about $3k/month now, but with a LOT LESS hassle, stress and fewer hours. I feel like we could have a better bottom line, I've spent lots of money on advertising and other "schemes" to try to get new business to our start-up--for the most part, money that I just as well have run through my schredder and taken and thrown out into the street. Upon leaving my previous employer, about 1,000 of HIS/MY??? customers followed me to my new shop because they like & trust me. Most of our new business has come from word-of-mouth. I have 25 years experience as an SA, but I can sell more work in 30 minutes than my partner-tech can complete in 3 days (he's a little lackadasical in his punctuality and staying on-the-job, but otherwise good as a tech & fair as a diagnostician).
Bottom like, according to the figures quoted, it seems like we're doing ok, even if it doesn't seem like it. Thoughts, comments, questions...???