Hello everyone,
Not even sure if this is the right sub but I literally just came up with this idea, well the math of this. Plumbing and lots of other trades are extremely. Lucrative. I have worked for a few companies and the exploitation is bad. I started my own company about 6 months ago and am doing very well but am trying to ethically hire a workforce.
I am going to lay out some dumb math and let’s see if anyone has any feedback for me. I have done it large scale and small scale and it seems to add up.
Example 1: Large Plumbing Corp (Based on a company I worked for):
- Revenue - 65,000,000
- Employees - 210
- I estimate profit to be around 15 million (Conservatively)
If profit sharing and equal pay across the board was enacted it seems that this would be the math for example:
(Base Salary) 85,000 x (Payroll Taxes, Expenses) 3 x (Amount of employees) 210 = 53,550,000
Subtract that from the yearly revenue and you’d get 10,450,000 which would then be split evenly among everyone if they all worked equal time (so you get profit sharing daily) that would be an extra 50k for each employee each year.
Let’s scale this down to a company of 5. I’d say on average in plumbing you can generate 45k per month per truck in my area. So let’s say this company has 3 trucks a manager and a phone person. Everyone still makes 85k a year.
$85,000 x 3 x 5 = $1,275,000
$45,000 x 12 months x 3 Trucks = $1,620,000
($1,620,000 - $1,275,000) / 5 employees = $69,000 per year for each employee on top of that 85k base.
Thank you to anyone who actually read all this! Let me know what y’all think. Idk if I’m just really high or this is how I should build my business.
Not even sure if this is the right sub but I literally just came up with this idea, well the math of this. Plumbing and lots of other trades are extremely. Lucrative. I have worked for a few companies and the exploitation is bad. I started my own company about 6 months ago and am doing very well but am trying to ethically hire a workforce.
I am going to lay out some dumb math and let’s see if anyone has any feedback for me. I have done it large scale and small scale and it seems to add up.
Example 1: Large Plumbing Corp (Based on a company I worked for):
- Revenue - 65,000,000
- Employees - 210
- I estimate profit to be around 15 million (Conservatively)
If profit sharing and equal pay across the board was enacted it seems that this would be the math for example:
(Base Salary) 85,000 x (Payroll Taxes, Expenses) 3 x (Amount of employees) 210 = 53,550,000
Subtract that from the yearly revenue and you’d get 10,450,000 which would then be split evenly among everyone if they all worked equal time (so you get profit sharing daily) that would be an extra 50k for each employee each year.
Let’s scale this down to a company of 5. I’d say on average in plumbing you can generate 45k per month per truck in my area. So let’s say this company has 3 trucks a manager and a phone person. Everyone still makes 85k a year.
$85,000 x 3 x 5 = $1,275,000
$45,000 x 12 months x 3 Trucks = $1,620,000
($1,620,000 - $1,275,000) / 5 employees = $69,000 per year for each employee on top of that 85k base.
Thank you to anyone who actually read all this! Let me know what y’all think. Idk if I’m just really high or this is how I should build my business.