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  Green Girl Garden Care August 1, 2017 at 8:07pm

  Not sure what the difference is if you're sole trader rather than Ltd. Profit=what you live off. The more profit the better standard of living you can have.
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  Dan Frazer Gardening August 1, 2017 at 8:34pm

  Making a living means you probably don't manage to save anything significant. Making profit, to me, means putting away a decent amount, maybe paying off the mortgage early, not struggling to replace a mower/van when it breaks down.
• PRO

  Andrew Watts August 1, 2017 at 9:25pm

  It's easier to give a simple size example to show a potential view on difference, well at least one of mine.

  If you're a stable,  established, full time, 1 person, 1 van operation, not growing, the business earnings cover all expenses including replacing the equipment and van and your salary etc, then you are making a living. Indeed, some will make a better living than others.

  If your trying to aggressively grow a business, then it (a) needs to earn everyone involved a living, including yourself, plus (b) it needs investment to grow. That investment comes from either cash savings/initial investment (does not last forever), or extra earnings, profit. The profit is either sufficient to fund the growth directly, or can be used to fund loans. In the long term, profit feeds a business and enables it to grow.
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  Ben Carter August 1, 2017 at 9:41pm

  If you are a sole trader or partnership there is no there is no difference between profit and making a living.  The difference is barely scraping by and making a living.  

  If you are a ltd company then yes you earn a living and the business makes a profit.

  So i think i have said the same as Green Girl Garden Care and Dan has the same outlook as me on it.
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    Ian Kenyon > Ben Carter August 2, 2017 at 8:10am

    Hmm, I think Andy is spot on. It depends what you choose to do with the profit, take it to make a living, or something else. It also depends on whether you need to make more than a living in order to meet your aspirations
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  Gary RK August 2, 2017 at 8:58am

  Some struggle with moving into self-employment, forgetting they've crossed over a 'fence'.

  They've become business owners and now have all the responsibilities, expectations and the need to deliver that they used to fight against or never appreciate when they were employees.

  In past discussions, it's been interesting to see some even view 'profit' as a dirty word.

  Whether self employed as ST or Ltd Co. and/or employing people, you are now a business person (that means foremost a "sales" person - along with all the other hats ).

  Your goal has to be to make sufficient money to support your 'lifestyle'.

  If that means you look to make enough to just cover that lifestyle, then you are 'making a living'.

  If you continually strive to generate work and maximise profits to either live an enhanced lifestyle and/or invest into growing a business then I would say you are "making a profit'
• PRO

  Harry@VWGS August 2, 2017 at 9:08am

  Thank you everyone for all your replies, yes i guess I look at it as I want to have excess money, which I class as profit ( for the business or personal use) after making enough money to make a living, many thanks
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  Andrew Midgley August 2, 2017 at 10:39am

  As long as you are covering all the bases sufficiently such as mortgage/rent, bills etc then you are making a living if you charge the right amount. However, if you are running around working long hours to make money then you are not making a living in my opinion. Profit to me is when you have a significant surplus of your essentials outgoings which can be channeled back into the business by replacing a new mower or hedge cutter or for overpaying the mortgage or for funding an expensive annual holiday. The key thing is to charge the right amount covering time, waste and fuel used plus use of expensive machinery such as a scarifier or chipper.