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It's directly correlated to your bottom-line net income and return on invested capital. If you can scrape by on nothing and invest everything possible back into
by seanMeverett 16y ago
It's directly correlated to your bottom-line net income and return on invested capital. If you can scrape by on nothing and invest everything possible back into the business (assuming you have a high ROIC).
It also assumes you have enough profit to pay yourself. Thus, the 33k is prob best if you're not living on ramen and tuna (go grab a beer as one commenter suggested). Because, if you're investing back into the biz then your future salary is exponentially higher.
For example, my interactive marketing company is experiencing triple digits ROIC so we have yet to take a dollar out of the company and continue to invest not only profits buy our own outside cash (and it's been well over a year) but we're getting to the point where we need to pay some bills and feed ourselves. Thus, we're going to keep our salaries as low as possible to cover our personal expenses like rent and food. We're doing this because we know a year from now we're going to much, much more profit to work with. So you want a hard number? Less than $30k per year. Pow.