These days, there’s a great deal of discussion on the appropriate salary for the founder of a startup company. Despite all the controversy, there’s no clear-cut answer; the following factors should be considered when Accountants in Brooklyn calculate a business owner’s salary.
- Business model: Does the company provide a service or a product, and how will it profit? How long has the company been in operation? What type of funding can be accessed? The business must be making an income before a salary can be paid.
- Experience: Is this company a first step into the field, or have you been in a related industry for a long time? An industry veteran may be worthy of a higher salary than a less-experienced professional. A business network, credentials and experience level are all factors to be considered when determining salary.
- Business type: Industry, job title and market niche have much to do with determining salary. However, tech-related startups can typically pay higher salaries than non-profit entities.
Once each of these factors are considered, the next step should be to choose a salary model that helps in calculating income.
Commissions
For small businesses and startups looking to lay a financial foundation, commission-based earnings can be a smart choice. With this revenue model, the better the business does, the more money will be made.
Experience-Based Salaries
With an experience-based salary model, work experience and age affect income. The more professional connections and knowledge a person has, the more profits can be made. Use a business network to determine how much colleagues are making, and then examine your own credentials.
Market Wages
Another way to determine an appropriate salary is to find the going rate for workers in similar positions. Online research can be helpful, as can looking at the salaries of other startup business owners in the industry. Consider assets, research and experience to come to a good starting salary.
When Accountants in Brooklyn try to calculate a client’s salary as the owner of a startup company, it’s important to arrive at a figure that compensates fairly without hampering the company’s financial growth. Potential clients can click here to know more info on how to achieve a balance between what the company can afford and what is deserved.
