As an entrepreneur , you have more power to your business and your budget than anyone else , which means you can fully determine the amount of your own salary . However , despite the freedom of determining the amount of your salary sounds very tempting in theory , in reality most business owners / entrepreneurs find it difficult to do so .
Do you have to pay your own expenses ? What can be covered by your company ? Salary that you do not take to set up your new business ?
Determination of the amount of salary you should take into account various factors such as the magnitude of the amount of your living expenses , financial condition and level of comfort with the use of your personal savings anyway .
The first step in planning your salary amount is to register the type of expenses you have in detail . When you calculate the annual personal expenses , divide by the number 12 to get a salary per month and you will get the amount of money you have to accept that you do not personally spend continuously to run a business .
Then , you have to calculate your salary based on knowledge and skills , the amount of time spent on it and the work that you must do .
There are 2 methods are equally valid that can be used to calculate a decent salary for entrepreneurs .
Open market value : Taking into account your level of experience and skills , you can find out the salaries of those who work with equivalent experience and skills you and make it as the initial benchmark . Although this does not take into account the amount of salary the amount of force , the mind and the time you spend to build the business , you sacrifice income to start your business become a useful benchmark in determining your salary .
The companies that are equivalent : Find data on salaries paid by enterprises in the amount approximately equivalent to the CEO or their founders . This amount can be used as a general comparison useful . If still in doubt , you can search for data in the institution or institutions that have similar data , such as the Chamber of Commerce , the governing body taxes , and so forth .
Both of these methods have not yet entered your hard work in setting up from scratch , or risks that must be faced when setting up the business . Most entrepreneurs provide an additional amount of about 3-5 % of the average salary of other companies owned by the founders to compensate for the risk and responsibility . While others prefer the long-term benefit in having a successful company .