11/20/2024
STORM WORK PROFIT & LOSS:
I posted recently about the immense effort it takes to perform storm work - work that thousands of people desperately need. Many things aside such as leaving your family and delaying existing clients, and those burdens, lets review brass tacks.
We spent 31 days out of state.
Gross revenue will be listed as 100%. Of that, 26% goes to payroll. Of the payroll, an additional 13% on top of payroll will be paid to workers comp. General expenses during the venture represent 25%. Cash expenses (you can't always use credit cards in disaster areas) are 14%. Hired services is 4.3%. Expenses incurred to be ready to mobilize, including tools and supply inventory is 17% (that's a lot of money to spend before you even depart!). Debts incurred amount to 78%.
Recognize that debs incurred will get factored into long term overhead so while applicable, isn't entirely transferable to the sums here. That said, without the debts incurred, ability to continue the storm work would cease.
To sum: 90% of gross revenue is directly paid out in operation expenses. Leaving 10% gross profit - which includes ZERO wages for me, the owner. Additionally, of the 10%, there are payouts for the ever and ongoing costs of doing business such as general liability, commercial auto, invoicing software, equipment loans, etc.
Further, debts incurred make it clearly a non profitable venture.
Add to the fact there are no guarantees for getting paid, and most contracts don't pay for weeks or even months - all the while I have spent my bottom dollars covering expenses. To make matters more difficult, one of the companies I contracted for has gone belly up, and I may never get paid.
At the end of the day, I seriously stress when trying to keep the business running as we move into slow season - winter.
BUT I SLEEP LIKE A BABY KNOWING HOW MANY HUNDREDS UPON HUNDREDS OF PEOPLE WE DIRECTLY HELPED. Their thank you's and cries of appreciation keep my soul afire.
Thank you to my crew. And thank you to my wife, who carried the real burden while being a great mother on top of working 70-80 hour weeks the entire time I was gone.
