Honestly, there is something wrong if you are actually looking for how much is the entrepreneurship salary.
Entrepreneurs should focus on wealth creation rather than on a pay check as in a normal job. But of course, entrepreneurs at some point should know when to set up what their payment will be after a certain time.
Keep reading to learn more about the concept of entrepreneurship.
If you google around for entrepreneurship salary and visit websites such as Zippia, you will be willing to turn into an entrepreneur, since it states on average an entrepreneur salary of $74,000 per year in the United States.
And honestly, I don’t think that most entrepreneurs in their first year will agree that they earn a salary.
Real entrepreneurs that start from scrath know that some ideas take time to develop and to generate their sales.
Of course, there could be products or services, specially the digital ones, that could generate a huge amount of sales on their first year, but the conscious entrepreneur will reinvest its profit to keep growing their business.
Entrepreneurs should focus on generating income streams that can help their projects to keep growing and eventually being stable enough to let them have their “own paycheck”.
Focus on wealth creation and reinvesting.
As mentioned, an entrepreneur must be educated financially to know how taxes work, and how a proper cash flow management will help him to grow sustainably.
As Robert Kiyosaki has explained in plenty of his books, the financial literacy is the key for any entrepreneur.
Before thinking on getting a salary, the main focus of an entrepreneur should be how to keep growing the business. The effect of this mindset will eventually bring as result income that can pay the needs of the entrepreneur
As Kiyosaki states, pay yourself first.
By paying yourself first, it is actually stated to get the assets that will help you to give yourself more income for other expenses.
The entrepreneur salary should be in a form of investment and savings that gives a good interest, some stocks, real estate or any business asset that keeps generating income.
This process helps on the wealth creation that will be part of the income streams that will pay the expenses.
Focus on generating sales and increasing revenue and it will be a matter of time to start getting more results.
The better you get into the improving your sales skills and your skills of generating income, the doubt of the entrepreneur salary will disappear, because you will start to notice that there is actually no limit.
The harder and smarter you work, and the better you achieve results, eventually it will drive you to have more income.
Well, you are the owner, and you are the one who have to decide how you control your finances.
But as a general rule of thumb, if your business is not generating a profit higher than your country’s financial bond rate, then you should reconsider your strategy and probably just invest on those bonds.
More less, a mexican governmental bond are giving a rate of 6.5% per year, if your business is having profit margins higher than that, then you are running well your business and can actually have a margin to reinvest into the business itself and to set aside for other assets, projects or any other expenses.
What I am trying to say, there is no right or wrong answer here, but there are consequences of setting an entrepreneurial salary higher than what the business needs for reinvestment.
Business cash is not the owners cash, and mixing personal and business expenses is a dangerous financial move.
Therefore, give the priority to the business and its growth, and then calculate how much margin is getting for finally setting some personal salary.
