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I am redoing my business plan for the nth time at the demand of a new institution. (A woman's Circle) and I am told I must now pay myself a salary as it is very important. I agree but my original business plan does not include this topic as the owner pays himself from the company profits.
Where do I include this new information and how many places in the business plan.
I could not find it in my other small company business plans.
It is somewhat categorically illogical to introduce it this late in the game but I see how it makes sense in a practical way.
Where do I include this new information and how many places in the business plan.
I could not find it in my other small company business plans.
It is somewhat categorically illogical to introduce it this late in the game but I see how it makes sense in a practical way.
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Re: Where does the owner salary go for a small company?
Tue, August 29, 2006 - 6:55 PM
Don't worry about redoing your plan. A plan is a very fluid document, and every time some new serious element is reached for your business, the plan should represent that.
For your salary, the 'how much' question is a good one, and if someone demands it, then it's relevant if before it was not.
And, you're talking a representative number, as you really do not have to pay yourself if your business simply does not have the income to pay you.
In terms of how much, one easy way to do it is to figure out what a reasonable hourly rate is, multiply that by 40 hours, and there's a reasonable amount /wk. Yes - this is a very arbitrary number, but what someone is asking is a rather arbitrary request, so that's about right, 'eh?
On that note, why is this woman's circle demanding a salary? I have heard of it before as some kind of generalized request, but I've never heard a good reason for it beyond this general ideal that someone has. Have you asked them specifically why they demand this? If so, let us know. -
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Re: Where does the owner salary go for a small company?
Tue, July 31, 2007 - 11:05 AMI am redoing it shortly and will have to speak to her again.
They are providing small low interest loans. I may or may not get the loan, I have other means of financing but debating my business in front of a panel is an excellent learning experience. -
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Re: Where does the owner salary go for a small company?
Tue, July 31, 2007 - 2:54 PM
Yeah, let me know how it goes.
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