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"that place had a gross profit of $13,000/week." Now take out taxes and your left with roughly $100K/year to pay yourself and any partners... Not exactly livin
by greedo 9y ago
"that place had a gross profit of $13,000/week."
Now take out taxes and your left with roughly $100K/year to pay yourself and any partners... Not exactly living high on the hog. And the hours for that pay can easily top 80/week.
- greedo 9y agoWhy the downvotes? This is basic accounting, not judging. Having a gross of $13K/week is a tough tough nut especially if you have any debt to service (SBA loans etc), or an equity partner expecting more than a free meal once in a while.
- scott_karana 9y agoThey said gross profit, somewhat confusingly. I assume that means pre-tax, but post COGS/wages/expenses. That's $676,000 pre-tax. Plenty of games you can play with that before taxation, and even afterwards it's a good chunk of change.
- greedo 9y agoAh... I also mentally transposed that to monthly net. I've never heard of someone referring to that as "gross profit"; my accountant would have lectured me for hours if I made a reference like that.