company profits

Business
1

Hello talkers

When you make profit how much do you take for your own enjoyment (what percentage) while ploughing the rest back into the business?

Eg you make 100k, how much do you take for yourself.

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2

That entirely depends on where your business is at …if its a start up, then the best you can do with the profit is to increase your seed capital e.g by adding more stock e.t.c

3

0.3 for a greek

4

i was thinking 5% - 10% max

5

Just pay yourself a salary every month and the rest reinvest kwa biz

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6

and that salary should be how much %age of the total monthly profit?

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7

This is a very ambiguous question. I mean it is totally up to the owner. Several things that may help decide this are:

  1. He can calculate his total monthly expenses to compute his salary. He needs to ensure that the expenses are not underestimated so that the budget can be adhered to.

  2. What business is he in and what do other professionals in the same field get paid. Payscale can easily be obtained online or from asking around in his professional circles.

  3. What is the minimum capital injection required to grow the business. With this year can determine how much he needs to plough into the business and maybe work with the leftover.

  4. If the business profit is a steady constant profit month over month he should maybe pay himself a figure that represents the annual growth rate of the company. At most the salary should be equal or less than the annual growth rate.

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8

How much would you pay a person doing that job for you?

1 Like