Salary for owner

Discussion in 'Business Operations' started by dmk395, Jul 19, 2003.

  1. dmk395

    dmk395 LawnSite Bronze Member
    from Ma
    Posts: 1,003

    How many years did it take you to draw a salary of 50K per year...how old were you at that time?
     
  2. Rustic Goat

    Rustic Goat LawnSite Bronze Member
    Posts: 1,194

    Not going there, You work for the IRS or United Charities International?
     
  3. LawnLad

    LawnLad LawnSite Senior Member
    Posts: 738

    Quoting Landscape Management Magazine:

    "What's your salary? Based on their work with over 50 companies across the country, the consulting firm of KehoeGuido found that owner-managers in high profit companies under $3 million in annual sales are earning combined salary (pay for managing their companies) and dividends (pay for return on ownership investment) at a rate of 8% of sales. In other words, in a high profit $2 million contracting business, the owner-manager grosses $160,000 per year, of which $100,000 is salary and $60,000 is dividends."

    If you follow the average, than you'll need a company that grosses $625,000 to pull $50,000 a year salary.
     
  4. ElephantNest

    ElephantNest LawnSite Bronze Member
    from La.
    Posts: 1,878

    All I can say is they're doing it wrong.
     
  5. Lawn Tek

    Lawn Tek LawnSite Senior Member
    from u s a
    Posts: 457

    Its real easy
    Gross sales
    Expenses
    Net
     
  6. tiedeman

    tiedeman LawnSite Fanatic
    from earth
    Posts: 8,745

    LOL..I love that. You make it sound so easy:D
     
  7. dmk395

    dmk395 LawnSite Bronze Member
    from Ma
    Posts: 1,003

    Good answer lawn lad
     
  8. dmk395

    dmk395 LawnSite Bronze Member
    from Ma
    Posts: 1,003

    Some of the other big cats must know something about this
     
  9. promower

    promower LawnSite Bronze Member
    Posts: 1,232

    If I grossed $625,000 in a year and was able to only keep $50,000 something would be drastically wrong. Does that mean If I made 100,000 I could only keep about $6,000? I am confused as to how these numbers add up.
     
  10. dmk395

    dmk395 LawnSite Bronze Member
    from Ma
    Posts: 1,003

    I am somewhat confused too. I think for most companies in that range their debt is unbelievable, whereas a company like mine was built with little debt and after a few years of braking our backs we feel a nice profit.
     

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