Saturday, August 14, 2010

Making a Business Plan pt 1 (How Much Do I Cost?)

In doing so, I tend to work from the denominator first, rather than the numerator. That is about the most obtuse way I can think of putting it. But here goes. Prepare for Too Much Information.
1. How much do I cost?
OK, so my rent is $893 a month. Let's pretend that doesn't go up. And let's go ahead and figure that in order to afford $893/month I have to grossly earn 1.3 times that in order to pay myself and pay taxes. So my rent actually ends up costing me 1160.90/month or $13,930.80 a year. But that's not all! For my company to pay me enough for rent I should multiply the final number by 1.22 for the company's side of taxes and so forth (or I end up being self-employed and I don't have a thumbnail calculation for that.) It would cost the company $16,995.78 to pay me enough just to make my rent.
Now obviously I have other expenses than rent. Back in the olden times your accountant would tell you that rent should be a quarter of your salary. You're in pretty good shape if you live in the NYC area and rent is only a quarter of your salary so let's pretend I can live in my present apartment for... $30,000 a year (right now that would be an awfully good year for me. I'm hobbling at maybe half that for the time being.)

The Russian version of Solar Vengeance.
That means that paying for me would cost the company $36,600 a year.

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