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Sizing Up Your SalaryAccording to a recent Gallup poll, an enviable 94 percent of small-business owners consider themselves to be successful.1 So how should successful business owners determine an appropriate salary that is in line with their work, but won't damage the future health of their companies? Even the owners of thriving businesses must consider more than their lifestyle preferences when deciding how much to pay themselves each month. Here are a few key issues that are likely to influence your compensation package.
To avoid poor financial decisions made in a moment of desperation, businesses should also have reserves to cope with temporary periods of higher-than-expected operating costs or slower sales. To help ensure lasting business success, it's important to make financial decisions based on what is best for the company first. Then you will be in a better position to address how the business can impact your personal financial situation for the years to come. 1) The Gallup Organization, 2005 |
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