1.2 Estimating The Entrepreneur’s Salary
Salary
A fixed regular payment, typically paid on a monthly basis but often expressed as an annual sum, made by an employer to an employee, especially a professional or white-collar worker.
Since you are starting your own business it would be better for the survival of the business that you take the least amount of money you can to defer your expenses. As far as possible, all profit made should be placed back in the business. Below is a practical example of how to calculate one’s salary.
Tasks
Work through the example that follows and then using the same methodology and procedure, work out your own salary.
Think Point
When working through the example above think of all the items you would need to include should you wish determine your own salary.
Case Studies
Watch the following video to gain some insight into how calculate your salary: