Business is hard. Prior to starting there is one question that should be considered over all others and that is, How much money do I need to make?:When you do start, your cost of living does not change. You will still need food, rent, car insurance, cell-phone etc. While it sounds stupidly simple, most start-ups assume that the business will carry all the personal expenses, plus pay a salary, plus make a tidy profit. This is rarely the case. The factor is not 10 X your annual salary per year to equal the amount of money you need. The reality is, the ownership of the business is extremely fortunate to keep 2-3% of the total gross income of the business. If the business runs $1 million per year in total gross, you (the owner) will be lucky to keep $20,000 to $30,000. If you need $60,000 per year, your business will need to gross $2 million annually and likely more!
Posted on: Wed, 26 Mar 2014 18:24:22 +0000
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